Chinese Lunar Holidays Bring Stability in Sodium Lignosulfonate Prices Due to Temporarily Halt in Construction Activities in the Country

Arrival of Chinese spring festival or lunar holidays has induced a temporary pause to the overall market activities of the country, which has reduced the output as well as domestic consumption. Thus, several commodities prices have started gaining stability since the last week of January in Chinese market.

As per ChemAnalyst Analysis, Sodium Lignosulphonate price has gained stability across China due to muted imports and consumption from domestic construction sector.

Sodium Lignosulphonate is a widely used chemical commodity in construction and paper industry, while construction sector of China carries a major porting in consumption of the product. During December, construction sector of China showcased a rebound in the domestic market, which was declining earlier due to production halts in the country. However, during January, rising Omicron cases in China have also concerned domestic players, as it could lead to another movement restrictions in the country, which has already started in some provinces. In addition, it was observed that, due to zero tolerance policy of the country, import/export activities also get retrained by government in order to curb rate of infection, which also hurts the overall market sentiments.

As per ChemAnalyst sources, stability appeared in Chinese market is temporary, which will not last for more than a month. Historical market trend states that, prices start rising during the second half of the month, due to restocking practices by traders. Therefore, Sodium Lignosulphonate prices are expected to climb up during forthcoming months on the back of domestic scarcity and firm offtakes from the downstream consumers. However, rising pandemic cases in the country amid zero tolerance policy of China may disturb the overall market trend of Sodium Lignosulphonate in February.