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Amid Rising Demand Sodium Sulphate Prices Rise in the US Market
Amid Rising Demand Sodium Sulphate Prices Rise in the US Market

Amid Rising Demand Sodium Sulphate Prices Rise in the US Market

  • 29-May-2024 5:43 PM
  • Journalist: Jung Hoon

Texas (USA): In May 2024, Sodium Sulphate prices have risen in the US domestic market due to increased consumer demand driven by heightened industrial and household activities and the water treatment sector's preparation for summer. Despite this, demand from the Sodium Sulphate downstream textile and paper industries remained weak. Sodium Sulphate Upstream Sodium chloride cost pressures also increased in the recent assessment.

In May 2024, the US Manufacturing PMI rose from April, surpassing forecasts of 50. This indicates a modest improvement in the Sodium Sulphate manufacturing sector, with gains in output and employment and reduced negative impacts from new orders and stock levels. Supplier delivery times improved slightly, suggesting less congestion. Sodium Sulphate manufacturers faced the highest cost increase in 18 months due to rising prices for various inputs and higher energy and labour costs. Optimism about future output grew despite new orders contracting due to lower demand in downstream industries.

In March 2024, exports were USD 257.6 billion, down USD 5.3 billion from February, while imports were USD 327.0 billion, a decrease of USD 5.4 billion. Ocean freight rates from Asia to North America dropped over 30% from their February peak, while rates to Northern Europe and the Mediterranean fell 25% since January. However, rates slightly increased mid-month before declining again. The ocean container market adapted to avoid the Red Sea due to Houthi attacks and easing Panama Canal restrictions during the rainy season positively impacted container traffic.

The Sodium Sulphate downstream paper and textile industries saw moderate demand amid weak business confidence, leading to fewer inquiries from the domestic packaging sector. According to the US Department of Commerce's Office of Textiles and Apparel, apparel exports to the US dropped significantly by 17.68% to USD 1.75 billion from January to March. Combined textile and apparel shipments also declined by 17.37% to USD 1.81 billion. Despite reduced inflationary pressures, apparel exports have consistently decreased as US retailers cut clothing imports, resulting in a further decline in Sodium Sulphate consumption in this segment.

Conversely, demand in the Sodium Sulphate downstream water treatment sector remained strong. Xylem, a global water technology provider, upgraded its annual profit projection due to robust demand for its water and wastewater treatment products and services, estimating annual revenue at around USD 8.5 billion, up from its earlier forecast. In the first quarter, Xylem's total revenue surged by 40.4% to USD 2.03 billion, exceeding expectations of USD 2 billion. Sales from its Sodium Sulphate downstream water infrastructure division, which includes water and wastewater pumps, increased by 40% to USD 574 million.

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