Cheaper Cargoes from Russia are shrinking prices of Sodium Lignosulphonate in India

Contrary to market expectations Sodium Lignosulphonate price has started tracing downtrend during January 2022. Despite of the fact that, Indian construction activities have showcased a bounce back after prolonged dullness during monsoon season in India, Sodium Lignosulphonate which is a major concrete additive tumbled in the meantime. As per ChemAnalyst analysis, domestic demand for construction additive have been rising since December in Indian market, while Sodium Lignosulphonate price started declining since the second week of January.

As per market sources, traders are receiving cheaper cargoes from Russia, which has induced a contrary market dynamic. Domestic traders have been opportune to widened the window of negotiations without compromising with the profit margin. Meanwhile, other factors like demand dullness from other downstream industries also remained another prime reason behind shrinking price band in the country.

Apart from cheaper imports and demand dullness from some downstream sectors, there are some other reasons which also supported this price dynamics. Due to pandemic related uncertainties in the country after sudden surge of Omicron variant, traders were procuring more cargoes in expectations of port related restrictions, which could halt the trading activities. However, these expectations didn’t come true, as despite being called as third wave, devastation was lower than previous two waves. In addition, delayed shipments and scheduled cargoes arrived at ports, which also improved the availability of the product in the country.

As per ChemAnalyst analysis, Sodium Lignosulphonate pricing dynamics are likely to persist for further period in Indian market, as the demand supply gap is narrow enough to sustain this trend. In the meantime, demand fundamentals are appearing to be improving from construction sector, while other sectors are still dull. However, any port related restrictions by India or Russia, as a precautionary measure to curb infection rate, might halt these dynamics in forthcoming months across Indian market.