For the Quarter Ending June 2024
North America
In Q2 2024, Sodium Tetraborate pricing in North America experienced a marked upward trajectory, underpinned by a confluence of supply-side constraints and burgeoning demand across various sectors. The quarter has been significantly impacted by disruptions in the supply chain, notably exacerbated by severe weather events, including the hurricane season which constrained production and elevated costs. Furthermore, logistical challenges at major shipping routes, such as the Panama Canal, contributed to the tightened availability of Sodium Tetraborate.
Elevated input costs, particularly in crude oil and natural gas, also played a critical role in driving prices higher, as producers faced increased operating expenses. Inflationary pressures and higher commodity prices further compounded the situation, leading to a robust price environment. Focusing on the USA, where the maximum price changes were observed, the market displayed a strong bullish trend. Seasonal factors such as increased industrial activity and the ripple effects of the hurricane season significantly influenced price dynamics, with notable correlations to upstream cost fluctuations.
Reflecting a 13% price escalation from the first to the second half of the quarter. The pricing environment in the USA remained predominantly positive throughout Q2 2024, culminating in a quarter-ending price of USD 868/MT for Sodium Tetraborate FOB Illinois. This quarter underscored the volatility and sensitivity of the Sodium Tetraborate market to external supply disruptions and seasonal demand fluctuations, driving a consistent upward pricing sentiment.
APAC
In Q2 2024, the Sodium Tetraborate market in the APAC region experienced a marginal upward trend in prices. This quarter has been marked by a confluence of factors driving the increase, such as rising input costs, an uptick in container freight rates, and a series of General Rate Increases (GRIs) implemented by carriers. Elevated upstream crude oil prices and heightened logistical expenses also played pivotal roles in augmenting the overall cost structure. The surge in container freight rates, largely attributed to a severe shortage of container space, compounded the upward price pressure, making it remarkably challenging for market players to maintain competitive pricing structures. Focusing on China, the market witnessed the maximum price escalations. The increased production activities, fuelled by profitability improvements among aggregation enterprises, led to higher input costs. The rise in Sodium Tetraborate prices was further propelled by enhanced freight costs and production cuts in export markets, notably Taiwan and South Korea. Despite a slight decline in the Manufacturing Purchasing Index, the overall sentiment remained positive due to an incremental production trajectory. Seasonality factors played a role, with the second half of the quarter reflecting a more pronounced price increase compared to the first half. The latest quarter-ending price for Sodium Tetraborate FOB Dalian in China stood at USD 716/MT, marking a resilient end to the quarter. The pricing environment, thus, has been decidedly positive, driven by robust market dynamics and a significant recovery in manufacturing activities, despite some lingering challenges. The overall trend suggests a stable yet progressive pricing outlook, bolstered by sustained demand and controlled supply disruptions.
Europe
In Q2 2024, the Sodium Tetraborate market in Europe experienced an upward trend in prices, driven predominantly by multiple supply disruptions and persistent demand fluctuations. A notable factor influencing market prices was the series of regional supply chain challenges, such as the ongoing strike action by the French National Federation of Ports and Docks and severe flooding in Germany, which significantly hindered logistics and production rates. Additionally, production constraints due to plant shutdowns, including a critical facility in Germany, exacerbated the tight supply situation, pushing prices higher. Germany witnessed the most pronounced price changes in this period, reflecting broader market trends and specific local factors. The German market grappled with low production rates and increased input costs, while inflationary pressures and destocking efforts further influenced price dynamics. The downstream construction sector faced a muted demand, resulting from elevated interest rates and economic stagnation, yet the limited availability of Sodium Tetraborate kept prices buoyant. The overall trend in Germany leaned toward a steadily increasing pricing environment, with seasonality playing a role in demand variations. Price changes correlated strongly with supply constraints and logistical disruptions, highlighting the market's sensitivity to external pressures. The comparison between the first and second halves of the quarter showed a 3% price increase, reflecting consistent upward momentum. Conclusively, the market sentiment remained bullish, with the latest quarter-ending price at USD 900/MT of Sodium Tetraborate CFR Hamburg, indicating a positive pricing environment dominated by supply challenges and steady demand.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Sodium Tetraborate in North America was characterized by mixed sentiments with some fluctuations in the USA market. In the USA market, Sodium Tetraborate prices experienced a significant decline of 4.2% in February 2024. This decrease was primarily driven by reduced costs of the key feedstock, Boric Acid, which led to lower manufacturing expenses.
Additionally, a slowdown in purchasing activity in downstream sectors, particularly in agriculture and construction, contributed to a buildup of inventory, further putting downward pressure on prices. In January 2024, Sodium Tetraborate prices remained stable in the USA market. This stability was influenced by balanced upstream and downstream factors, with demand from downstream industries remaining unchanged and ample supply availability.
The price stability was also supported by a reduction in the price of a key feedstock, Soda Ash, which helped to reduce production costs. Looking at the overall trend and seasonality, Sodium Tetraborate prices in the USA market experienced a 9% increase in March 2024, mainly due to higher shipping costs caused by diversions in shipping routes away from the Red Sea. However, the market remained bearish overall, with a 4% decrease in prices in February 2024.
APAC
In the APAC region, the pricing of Sodium Tetraborate during Q1 2024 exhibited a mixed trend, influenced by various factors. In China, Sodium Tetraborate prices initially declined in January 2024 due to reduced import prices and sluggish demand in the agriculture and construction sectors. However, prices rebounded in February 2024 due to a tight supply caused by lower production activities during the Lunar New Year holiday. Consequently, the market witnessed a bearish trend in January followed by a bullish trend in February. Contrastingly, the Indian market saw fluctuation within a narrow range with minimal changes in prices. The cost dynamics of its key feedstock, Soda Ash, played a significant role in maintaining this price trend. Overall, the pricing environment for Sodium Tetraborate in the APAC region during Q1 2024 was mixed. While China experienced significant price fluctuations, with prices reducing by more than 10% in the first quarter of 2024 compared to the previous quarter, the Indian market remained relatively stable within a narrow price range.
Europe
In Q1 2024, Sodium Tetraborate prices in Europe experienced a mixed pricing environment, with both positive and negative trends observed. Overall, the market was influenced by factors such as constrained raw material supply, elevated production costs, and fluctuating demand from various sectors. The limited availability of soda ash, a key feedstock for Sodium Tetraborate, led to higher raw material expenses for manufacturers. This scarcity disrupted the supply chain and resulted in increased production costs. Strikes across European countries also impacted transportation, leading to higher transportation charges and affecting prices. Demand for Sodium Tetraborate remained moderate to high, driven by the healthcare and laundry sectors. However, demand from the agriculture sector was slightly lower due to farmer protests and tax increments. Belgium experienced the maximum price changes during this quarter. Prices for Sodium Tetraborate in Belgium declined in January 2024, primarily due to reduced production costs and ample inventories. However, prices rebounded in February and March due to improved demand from downstream industries and higher production costs. In terms of seasonality and correlation, there was a slight decline in prices compared to the same quarter last year. However, there was a positive correlation between the previous quarter in 2024, with prices increasing gradually. In conclusion, the pricing environment for Sodium Tetraborate in Q1 2024 in Europe was generally mixed, prices reduced in Q1 2024 by around 3.5% compared to the previous quarter.
For the Quarter Ending December 2023
North America
The Sodium Tetraborate market experienced a notable upswing throughout the fourth quarter of 2023 driven by increased demand from downstream industries, particularly in glass and ceramics manufacturing.
Sustained cost pressures on manufacturers, responding to rising feedstock prices, led to adjusted profit margins and elevated product prices. While the initial phase saw some manufacturers facing a slightly tight supply, later stages witnessed improved consistency in goods delivery. Despite this, Sodium Tetraborate prices remained temporarily high. In November, the Consumer Price Index (CPI-U) in the U.S. rose by 0.1 percent, following a month of no change in October.
Towards the end of fourth quarter of 2023, the rising shipping costs, driven by shipping companies diverting routes away from the Red Sea amid security concerns related to Houthi Rebel attacks. This forced longer routes around the Cape of Good Hope, resulting in increased transit times and elevated shipping costs. According to the ChemAnalyst database, the settled price for Sodium Tetraborate was recorded at USD 718/MT FOB Illinois during the month of December 2023.
APAC
Throughout the fourth quarter of 2023, the drop in Sodium Tetraborate prices reflects the impact of global economic challenges and a downturn in demand from the glass and ceramics industry. The substantial increase in inventory signals a shift away from downstream industries, casting a shadow over pricing dynamics. Adding a dramatic element to this narrative is the influx of raw material dumping in the region. The abundance of raw materials has sparked intense competition among Chinese manufacturers, leading to price adjustments to maintain competitiveness. This unfolding scenario occurs amidst a global economic downturn, portraying a vivid image of price struggles and economic shocks in the Chinese Sodium Tetraborate sector. Furthermore, the NBS Manufacturing PMI in China contracted in December 2023, with a significant decline in new orders, especially in foreign sales, and continued sluggish buying activity. According to the ChemAnalyst database, the settled price for Sodium Tetraborate was recorded at USD 700/MT FOB Dalian during the month of December 2023.
Europe
The Sodium Tetraborate market experienced a significant surge during the first half of the fourth quarter 2023 due to increased demand from various downstream industries, particularly in glass and ceramics manufacturing. Manufacturers, grappling with sustained cost pressures amid rising feedstock prices, adjusted profit margins, resulting in higher product prices. These elevated prices were influenced by both market competition and the manufacturers' ability to absorb the heightened costs. While some manufacturers initially faced a slightly tight supply, improved operating rates in later stages led to more consistent goods delivery. Despite this enhancement in supply, Sodium Tetraborate prices remained temporarily elevated. In the latter part of Q4 2023, the cost of Sodium Tetraborate in Germany witnessed a decline due to constrained import prices for Europe. This reduction was linked to increased production rates among manufacturing units and a gradual rise in port inventories. European mills received imported material at a discounted rate, but the combination of weak demand and sufficient existing inventory dissuaded buyers. Additionally, reduced demand from the agriculture and construction sectors contributed to the overall decrease in prices. Despite ample supply and inventories in the region, the ChemAnalyst database noted the settled price for Sodium Tetraborate at USD 890/MT CFR Hamburg in December 2023.
For the Quarter Ending September 2023
North America
In the North American region, the Sodium Tetraborate market experienced a significant price increase during the third quarter of 2023. Several factors contributed to this surge in prices, including increased demand from downstream industries, a rise in export orders, the impact of high inflation on commodity prices, and tighter financial conditions. These combined elements resulted in a rapid and substantial increase in sodium tetraborate prices. Additionally, manufacturers faced higher input costs, primarily driven by the uptick in Crude Oil prices during the period. Furthermore, the service sector in the US played a significant role in driving business activity growth, indicating a positive economic outlook. Meanwhile, the situation related to the mining and the availability of inventories was further complicated due to ongoing uncertainties arising from weather-related disruptions, with Hurricane Idalia representing a notable event during the hurricane season. Therefore, considering the diminished production activities, a consequential shortage of sodium tetraborate was materialized, exerting its influence on both domestic and international markets.
APAC
The APAC region witnessed a surge in demand for Sodium Tetraborate throughout the third quarter of 2023, particularly in downstream industries like glass, ceramics, and household cleaning. This unexpected demand increase tightened the sodium tetraborate market. Meanwhile, the manufacturing activity in the region decreased, as indicated by the PMI. However, the drop-in manufacturing activity led to the drop in the overall inventories, which pushed the market prices up. Along with the reduced manufacturing activity, the supply in the region was also hampered due to the occurrence of the two typhoons simultaneously in the Chinese shores. The typhoon Talim during mid-July to typhoon Doksuri had wreaked havoc, leading to labor shortages and reduced productivity, impacting cargo handling, customs clearance, and overall supply chain operations. Furthermore, downstream sector performed well, Inflation was also under control. Consequently, many regions faced an elevated risk of flooding due to these typhoons, leading to disruptions in various industries, including the Sodium Tetraborate sector. On the other hand, the Producer Price Index (PPI) for September exhibited a slight increase of 0.4 percent, surpassing the 0.2 percent rise noted in August.
Europe
In Germany, the Sodium Tetraborate market saw an increase in demand due to tight supply, rising demand, and increased freight charges. The region experienced climatic challenges with heatwaves and heavy rainfall, causing fluctuations in the water level of the river Rhine. This impacted imports from other Asian and European markets, as increased freight charges affected cargo shipments, partly leading to empty vessels. In the latter part of the quarter, despite an improvement in water levels, cargo vessels in northern areas could not sail fully loaded, resulting in extra charges on freight rates. Climatic factors, rising costs, and product delays added pressure to the market. The global weather phenomenon El Niño and climate change were believed to be contributing to these challenges. Towards the end of the quarter 2023, there was a notable decrease in inflation that had been impacting Europeans, bringing it down to its lowest level in two years. This reduction in inflation improved optimism among consumers as they can find relief from the burden of rising commodity prices.
For the Quarter Ending June 2023
North America
The North American market witnessed a depreciation of prices of Sodium Tetraborate by 10% and 6% in the first two months of the quarter, however, the prices surged by 10% by the end of the Q2. The situation of the market was observed to be bearish as the demand from downstream sectors like agriculture, laundry, and construction has been low due to the economic slowdown in the US. The ample availability of the product amidst subdued demand dropped the prices of Sodium Tetraborate in the region. The purchasing activities from the domestic market looked grim as the world economy displayed uncertainties that weakened demand, resulting in manufacturers facing stockpiling of inventories. However, the market conditions for the product improved by the end of the quarter due to raised demand from the downstream cosmetic sector and steady demand from the construction industry in the US. Additionally, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index (CPI) of the USA has shown a marginal rise from 302.91 in April 2023 to 303.29 in May 2023 and is expected to increase further.
APAC
During the second quarter of 2023, the Sodium Tetraborate market in the Asia-Pacific region showcased mixed sentiments. The price of the product rose by 2% in April but fell by 7% and 3% in May and June respectively. In April, the upstream Boric Acid prices contributed to the soaring prices, as the market witnessed tight supply for the product. The recovery of the Chinese economy has led to a rise in the demand for Sodium Tetraborate from the downstream construction industries. However, the decline in the last two months was on account of lackluster demand from end-user industries such as cosmetics, agriculture, and detergent industries. Also, the market witnessed bearish demand and limited trading activities amidst a pessimistic world economy. The weaker inquiries from the domestic market have led to stockpiling of the product, further, depreciating the costs. A similar market outlook was observed in India where the prices declined throughout the quarter, with a drop of 1% in June. As per data from the National Bureau of Labor and Statistics, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from the previous month along with a decrease in industrial growth rate from 5.6 in April 2023 to 3.5 in May 2023.
Europe
The Sodium Tetraborate market showed mixed market sentiments in Europe during Q2 as the prices fell for continuous two months, but rose by the end of the quarter. The price of Sodium Tetraborate in Belgium declined by 5% and 4% in April and May respectively and inclined by 5% in June. The depreciating cost of the product was observed due to unhealthy downstream demand in the domestic market due to raised interest rates and inflationary pressures. Further, the ample availability of the material in the European region coupled with subdued demand and competitive import product prices has caused domestic sellers to offer products at lower prices to destock the material. Moreover, the upstream Boric Acid prices have influenced the price of Sodium Tetraborate. In June, a surge in price is observed due to increased demand from downstream cosmetics and personal care sectors in the European region. As the supply was low, the traders raised the prices. The economy of the region is directly impacting consumer purchasing activities. Inflation in Germany slowed down from 6.1% in May to 5.6% in June but as per data from the German Federal Statistical Office, the Consumers Price Index has declined by 0.1% in May 2023. Further, as indicated by Eurostat, the Producers’ Price Index of the region declined to 138.3 in May from 143.4 in March and is expected to decline further. The average decline was 3.6%.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, the market for Sodium Tetraborate in North America showcased mixed market momentum. The prices were significantly falling in the first half of the quarter, which later gained stability as the quarter approached its end. During March, an improvement in the industrial production and sales of the construction and detergent industries was witnessed, which increased market demand for Sodium Tetraborate and resulted in a stable rise in price. Additionally, the level of inventories was lower than what was necessary to meet the demand, and the supply rate lagged, which led to an unstable demand-supply ratio and an increase in the price of Sodium Tetraborate. As a result, the evaluated price for Sodium Tetraborate in the USA in March was USD 592/MT FOB Illinois.
APAC
Unlike North American market sentiments, the Asia-Pacific region witnessed a consistent fall in Sodium Tetraborate prices during quarter 1 of 2023. The price trend of Sodium Tetraborate in the Asian market has been softening due to the bad condition of the downstream construction sector and the weak procurement attitude of end-users for detergent boosters. Strong supply was developed because of increased refinery run rates and falling upstream boric acid costs in the Asian market. Hence, the instability in the demand and supply ratio caused the Sodium Tetraborate prices to fall drastically during the quarter. Hence, the assessed cost of Sodium Tetraborate in China was USD 831/MT FOB Dalian in March, which was 33.3% lesser than its value in December.
Europe
The market for sodium tetraborate in Europe experienced uneven market momentum during the first quarter of 2023. During the first half of the quarter, prices inclined in January, only to decline sharply in February; however, as the quarter's end drew near, they began to stabilize. The building and detergent industries' industrial production and sales improved in March, which increased market demand for sodium tetraborate and led to a steady price increase. In addition, inventories weren't as high as they needed to be to fulfill demand, and the supply rate was slower than it should have been. These factors combined create an unstable demand-supply ratio and a spike in the price of sodium tetraborate. So, in March, the assessed cost of sodium tetraborate in Germany was USD 865/MT CFR Hamburg.
For the Quarter Ending December 2022
North America
During the final quarter of 2022 in the American market, the price of sodium tetraborate declined steadily throughout the months. The weak demand from the pharmaceutical sector contributed to the price drop in the US. The cost of Sodium Tetraborate decreased throughout Q4 2022 in the American market due to the poor demand from the construction sector. Throughout Q4 2022, the steady upstream borax supply from Turkey contributed to the decline of Sodium Tetraborate prices in the US. At the end of the final quarter of 2022, the price of sodium tetraborate on the American market was around USD 842/MT.
APAC
Sodium Tetraborate's price in the Chinese market fell significantly and persistently throughout the final quarter of 2022. The price of sodium tetraborate was projected to be around USD 1245/MT at the end of Q4 2022. Despite rules pertaining to Covid-19 during the final quarter of 2022 in China disrupting the supply of the commodity, the poor demand from the downstream construction sector drove down the prices of Sodium Tetraborate in the Chinese market. The price of sodium tetraborate further decreased in the Chinese market during the fourth quarter of 2022 as a result of the drop in the cost of upstream borax at the end of Q4.
Europe
Throughout the last quarter of 2022, the price of Sodium Tetraborate declined consistently in the European market. At the end of Q4 2022, the cost of sodium tetraborate was estimated to be roughly USD 1021/MT in the German market. Sodium tetraborate prices fell in the European market due to the relative easing of energy costs in various European countries and the poor demand from the downstream construction sector throughout Q4 2022. Due to the decrease in the price of upstream borax at the end of Q4, the price of sodium tetraborate in the European markets fell even further during the fourth quarter of 2022.
For the Quarter Ending September 2022
North America
The cost of Sodium Tetraborate decreased in the American market during the first half of the third quarter of 2022. The price decline at the beginning of Q3 2022 was assisted by the poor demand from the pharmaceutical sector. Prices started to rise in the second half of Q3 2022 as demand from the downstream construction sector drove up the cost of Sodium Tetraborate in the US. The supply disruption of upstream Borax from turkey abetted the rising price trend of US Sodium Tetraborate during the end of Q3 2022. At the conclusion of the third quarter of 2022, Sodium Tetraborate was selling for roughly USD 877/MT on the American market.
APAC
The price of Sodium Tetraborate decreased steadily during the first part of the third quarter of 2022 on the Chinese market, and this price decline was marked. The extreme heat wave scenario in China significantly reduced demand from the downstream construction sector in the nation, which in turn reduced demand for Sodium Tetraborate. Due to the increase in the price of upstream Borax at the end of Q3, Sodium Tetraborate experienced a price increase in the Chinese market during the second half of Q3. At the end of the quarter, the cost of Sodium Tetraborate was estimated to be around USD 1309/MT.
Europe
Early in the third quarter of 2022, Sodium Tetraborate became less expensive in European markets. The continent's downstream construction sector saw a decrease in demand for Sodium Tetraborate as a result of the continent's high energy prices. The price fell because of a decline in consumer spending in Europe due to rising inflation rates. The rise in upstream Borax prices at the end of Q3 led to an increase in the price of Sodium tetraborate in Europe during the second half of the third quarter. By the end of Q3 2022, it was recorded that the price of Sodium Tetraborate in Germany would be around USD 1063/MT.
