Sodium Chloride Prices Likely to Climb by March-End Amid Supply Constraints and Growing Demand
Sodium Chloride Prices Likely to Climb by March-End Amid Supply Constraints and Growing Demand

Sodium Chloride Prices Likely to Climb by March-End Amid Supply Constraints and Growing Demand

  • 27-Mar-2025 5:00 PM
  • Journalist: Timothy Greene

The global sodium chloride prices might go up by the end of March 2025 due to various factors. The growth of industrial verticals, such as chemical, food & beverages and water treatment, is influencing a rise in demand for sodium chloride, and thus further elevating the demand-supply gap. Countries such as Indonesia, South Korea and Malaysia, which almost entirely rely on imported salt, may experience shortages and higher purchasing costs.

In March 2025, sodium chloride prices in China could rise due to multiple demand and supply factors. After the Chinese Lunar New Year, the manufacturing sector had a significant turnaround, hence driving up demand from the downstream industries reliant on sodium chloride, like chemicals as well as food processing. Moreover, market participants have picked up on foreseen maintenance at salt production facilities around peak Summer and as a result, may keep up their stocking levels in order to compensate for the shortfall. Even warmer temperatures also facilitate higher demand, specially in industries like water treatment & in food preparing. As consumer demand increases, and there is a potential supply risk due to work-related breaks, it is predicted that sodium chloride prices in China may face upward pressure.

In Gujarat state, India, prices for sodium chloride might rise owing to its market dynamics and supply pressures shifting. Thoothukudi, the major salt producer in Tamil Nadu, has been encountering falling production for the past three years, 2024 panning out to just 50% of expected production amid excessive rains. The cascading effect has resulted in a sharp surge in prices and stock depletion in the domestic market, and hence buyers have shifted to Gujarat, India’s largest salt producer, where prices had previously dropped due to higher production and lower rainfall. But, with mounting consumption of Gujarat’s salt due to the lower supply in Thoothukudi, stocks in Gujarat might become insufficient and thus prices of sodium chloride will climb up. Deeper reliance on Gujarat’s salt could also put pressure on logistics and add to price hikes in the region.

Given that China and India are major salt exporters, Indonesia, Malaysia, and South Korea will probably follow a comparable price path.

In countries such as Malaysia and Indonesia, food consumption increases dramatically during Ramadan as a result of pre-dawn and post-sunset meals. Due to its significant contribution to food preservation, seasoning, and production of processed food, demand from manufacturers as well as households is increasing. This increased demand may elevate sodium chloride costs. Furthermore, the weakening of the South Korean won versus the United States. dollar has made sodium chloride imports more expensive, further supporting the upward price trend.

In light of these trends, global sodium chloride prices are anticipated to continue on an upward path. Supply constraints, growing industrial and seasonal demand, and rising import costs in major markets are all driving prices up.

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