For the Quarter Ending September 2024
North America
In Q3 2024, the Sodium Gluconate market in North America experienced a notable decline in prices, primarily driven by weakened demand from downstream sectors, particularly the construction industry. As construction projects slowed due to economic uncertainties and rising material costs, the demand for Sodium Gluconate—commonly used as a concrete additive—diminished significantly. This reduction in consumption created downward pressure on Sodium Gluconate prices.
Additionally, low international demand exacerbated the situation, as reduced orders from key trading partners contributed to an oversupply in the market. Manufacturers faced challenges in moving existing inventory, further pushing prices downward. This combination of weak domestic and international demand resulted in bearish market sentiment. Moreover, late in the quarter, expectations of a potential strike on the U.S. East Coast and port congestion slowed trade for Sodium Gluconate.
By the end of the quarter, Sodium Gluconate prices reflected this trend, with significant reductions noted compared to the previous quarter. The overall pricing environment indicated a decline in domestic market activity.
APAC
In Q3 2024, the Sodium Gluconate market in the APAC region faced a decline in prices due to several key factors impacting supply and demand dynamics. Weak demand from downstream sectors, particularly the construction and textile industries, led to a noticeable reduction in consumption. The construction industry, which typically utilizes Sodium Gluconate as a concrete additive, showed signs of sluggishness amid economic uncertainties and project halts, further diminishing demand. In the textile sector, competition and reduced production schedules also contributed to lower consumption levels. High inventory levels created an oversupply situation in the market, forcing manufacturers to lower prices to stimulate sales. Additionally, reduced international orders, particularly from major trading partners, contributed to bearish sentiment, as manufacturers struggled to move existing stock. China experienced the most significant price fluctuations during the quarter, with prices recorded at USD 573/MT FOB Qingdao. Despite these challenges, it is noteworthy that prices rose by 1.5% compared to the previous quarter, indicating some resilience in the market. Furthermore, when compared to the same quarter last year, prices increased by 2.5%.
MEA
In Q3 2024, the Sodium Gluconate market in the MEA (Middle East and Africa) region displayed a stable pricing trend, primarily driven by positive demand from downstream sectors, particularly the construction industry. As new infrastructure projects were initiated across several countries, the demand for Sodium Gluconate, widely used as a concrete additive, saw a notable uptick. This increasing activity provided a robust foundation for price stability in the market. Additionally, ample inventory levels helped maintain equilibrium in supply and demand dynamics. Manufacturers were able to meet market needs without significant fluctuations in prices. Furthermore, the influx of affordable imports from overseas suppliers contributed to the stable pricing environment. These cost-effective imports allowed local manufacturers to manage their production costs while ensuring adequate supply for the growing demand. Despite potential challenges, such as fluctuating international trade conditions, the overall market sentiment remained positive. By the end of the quarter, Sodium Gluconate prices reflected this stability, indicating a resilient market capable of adapting to changing demands and supply chain dynamics in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Sodium Gluconate market experienced a consistent downward trend in pricing, driven by several significant factors. The ample availability of Sodium Gluconate within the region, coupled with high port inventories and subdued demand from the downstream construction industry, played pivotal roles in exerting downward pressure on market prices. The inflationary environment further added to the complexities, impacting overall market sentiment and consumer purchasing power.
Despite a generally robust economic backdrop, with moderate growth in the manufacturing sector, the Sodium Gluconate market faced challenges due to the reduced rate of expansion and declining orders in both manufacturing and services sectors. Focusing on the USA, where the most substantial price changes occurred, the overall trends reflected a bearish market sentiment. The seasonality factor, particularly the arrival of the monsoon season, contributed to the muted demand from the construction sector, further influencing the negative price trajectory.
The correlation between these seasonal trends and the broader economic pressures was evident in the price movements throughout the quarter. Overall, the pricing environment for Sodium Gluconate in Q2 2024 was negative, with persistent downward pressure reflecting the challenging market conditions.
Europe
In Q2 2024, the European Sodium Gluconate market experienced a pronounced upward trend, significantly influenced by heightened demand from the downstream construction sector and elevated global freight rates. The continuity of supply was maintained despite logistical challenges, with freight rates witnessing a notable surge, especially for shipments from Asia to Europe and North America. The chemical industry, reliant on timely shipments, faced increased costs due to these delays and higher freight charges. This quarter has been characterized by a bullish market sentiment, driven by the robust recovery of the construction industry and broader economic improvements across the region. Focusing on Germany, where the most significant price changes were observed, the market dynamics were particularly noteworthy. The country experienced a notable increase in Sodium Gluconate prices, driven by the resilient demand from the construction sector. The seasonality factor played a crucial role, with the onset of favourable summer conditions bolstering construction activities and thereby increasing Sodium Gluconate demand. The price escalation was further compounded by rising crude oil prices, influenced by supply cuts from OPEC countries, which affected the derivative markets and overall production costs. Comparing the first and second halves of the quarter, the latter displayed a marked price increase of 3%, reflecting the sustained demand and logistical constraints. Despite no plant shutdowns reported, the market's positive trajectory remained unimpeded by supply disruptions. This upward trend underscores the market's resilience and the strategic adjustments made by industry players to navigate logistical challenges and rising input costs.
APAC
In Q2 2024, the pricing environment for Sodium Gluconate in the APAC region has witnessed a significant upward trend. A combination of sustained demand from the construction industry and increased production costs has been pivotal in driving up market prices. The escalation in crude oil prices, geopolitical tensions, and disruptions in global supply chains have further compounded cost pressures. Additionally, logistical challenges, including a surge in freight rates and port congestion, have exacerbated the supply constraints, thereby contributing to the bullish market sentiment. Notably, there have been no reported plant shutdowns, ensuring a steady, albeit strained, supply. Focusing on China, the price changes have been particularly pronounced. The robust construction sector, spurred by rising home sales and government-backed infrastructure projects, has significantly bolstered demand. Seasonal considerations, such as favourable summer conditions, have further heightened construction activities, reinforcing the positive pricing momentum. Compared to the first half of the quarter, prices saw a notable 7% increase in the second half, underscoring the persistent upward trend. Overall, the prices recorded a 7% increase from the previous quarter, reflecting a strong market trajectory. The quarter concluded with the price of Sodium Gluconate at USD 600/MT FOB Qingdao, illustrating a consistent positive pricing environment throughout Q2 2024 powered by robust demand and supply-side constraints.
For the Quarter Ending March 2024
North America
The North American Sodium Gluconate market experienced a bullish trend in the first quarter of 2024, driven by expensive imports from Europe and Asia, particularly from Belgium and India. The Red Sea crises during the quarter significantly impacted product imports, leading to increased surcharges and traders opting for premium insurance.
Container shipping faced substantial disruptions, with vessels rerouting around the Cape of Good Hope to avoid Red Sea conflicts. Major ocean carriers suspended Red Sea transits, causing travel durations and freight expenses to increase notably. These disruptions, coupled with the Panama Canal drought, contributed to a surge in ocean shipment rates, with container shipping rates from Asia to Europe and North America increasing by 300%. Additionally, the global increase in feedstock Gluconic Acid prices during this period raised production costs in the region, further supporting the bullish market trend.
The downstream construction industry saw increased demand due to tight housing supply in the USA, evidenced by significant shortages in housing units for sale. Despite a slight dip in multi-family housing project outlays in February, likely due to backlog management, construction companies played a pivotal role in bolstering the US job market, adding 39,000 jobs in March. Concurrently, the unemployment rate dropped to 3.8%, with over 400,000 individuals joining or rejoining the workforce, reflecting positive economic dynamics in North America during Q1 2024.
APAC
Sodium Gluconate pricing in the APAC region for Q1 2024 has been influenced by several significant factors. Overall, the market has experienced a positive price trend, driven by factors such as increased feedstock costs, tight supply conditions, and strong demand from the construction industry. In China, the largest market for Sodium Gluconate in the region, prices have seen the maximum price changes. The market has witnessed a bullish trend, with prices increasing consistently throughout the quarter. This can be attributed to the rise in feedstock costs, particularly Gluconic Acid, which has directly impacted the production expenses for Sodium Gluconate. Additionally, the global surge in freight rates has further contributed to the price increase in the Chinese market. Seasonality has also played a role in the price changes, with demand from the construction industry being affected by adverse weather conditions, particularly during the winter season. However, overall demand has remained stable, supported by the government's initiatives to stimulate the construction sector. In terms of price comparisons, the first half of the quarter has seen a slight increase in prices compared to the second half. This can be attributed to the tight supply conditions and increased feedstock costs that were more pronounced in the early part of the quarter. To conclude, the pricing environment for Sodium Gluconate in the APAC region, particularly in China, has been positive in Q1 2024. Prices have been driven by factors such as increased feedstock costs, tight supply, and stable demand from the construction industry. The latest quarter-ending price for Sodium Gluconate FOB Qingdao in China is USD 551/MT.
Europe
During Q1 2024, the European Sodium Gluconate market saw a bullish trend, especially in Belgium, a key exporting country in the region. Overseas demand for the product increased due to uncertainties in trade routes. Disruptions to global trade, such as the Houthi campaign against shipping in the Red Sea, impacted retailers in the UK, with container shipping prices soaring by up to 300% and goods experiencing delays of up to a month. This led to supply shortages of Sodium Gluconate and cash flow challenges in the European market. Additionally, rising feedstock costs, particularly for Gluconic Acid, directly affected production expenses for Sodium Gluconate. However, the downstream construction industry did not perform well during this quarter, with real estate deals in Europe experiencing their highest number of failures since the global financial crisis, attributed to ongoing economic uncertainties in the region. Despite challenges, the European Sodium Gluconate market remained resilient, driven by increased overseas demand and supply chain disruptions. Ongoing economic uncertainties posed challenges to the downstream construction sector, impacting the overall market dynamics in Q1 2024.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the North American Sodium Gluconate market experienced a notable decline in prices. This downturn was influenced by subdued demand from the downstream construction sectors and abundant supplies.
In the USA, the limited demand for Sodium Gluconate was attributed to a sluggish economic recovery and stagnant trading conditions in the construction segment. In anticipation of a potential price increase due to new import tariffs, buyers temporarily halted their purchasing activities during this period. Additionally, global factors, such as the Russia-Ukraine war and a drought affecting the Panama Canal, added complexity to international container logistics in the USA during the concluding quarter of the year.
Facing a substantial decline in spot export prices compared to contracted prices, US buyers are actively engaging in discussions regarding potential reductions in contracted Sodium Gluconate prices. The disruptions in US shipping caused by Panama Canal issues, coupled with the ongoing decline in crude oil values, further influenced the pricing dynamics in the North American Sodium Gluconate market.
APAC
The fourth quarter of 2023 was challenging for the Sodium Gluconate market in the APAC region as this period experienced a bearish trend, primarily driven by low demand from the downstream sectors such as construction, textile, and food and beverages industries. The economic slowdown in China, one of the major consumers of Sodium Gluconate, further contributed to the subdued demand. The presence of ample product availability in the region also led to a downward shift in prices. The market saw no plant shutdowns during this quarter. Within the APAC region, China witnessed the most significant changes in Sodium Gluconate prices. The country experienced a price decline of 7% during this quarter compared to the previous quarter. The weak economic fundamentals and muted demand sentiments in China impacted the market negatively. The construction sector, which is a major consumer of Sodium Gluconate, remained bearish, leading to low demand. Despite an improvement in the manufacturing PMI, the overall demand for Sodium Gluconate remained low. The quarter ended with a price of USD 522/MT FOB Qingdao for Sodium Gluconate in China.
Europe
The Sodium Gluconate market in Europe faced considerable challenges in the fourth quarter of 2023, resulting in notable fluctuations in prices. A key contributing factor was the sluggish activity in the downstream construction industry, creating a bearish trend for Sodium Gluconate in December 2023. Adequate inventories further exerted negative pressure on prices. High input costs, supply shortages, and destocking sentiments among market players also played a significant role in dampening price momentum during November and December 2023. Germany experienced substantial price changes, reflecting a bearish trend throughout most of the year. Despite attempts to protect profit margins by reducing operating rates, suppliers struggled to boost margins due to intense competition from the import market. Despite production cutbacks, Sodium Gluconate supplies faced persistent challenges due to low demand in the fourth quarter of 2023. Interestingly, the European Sodium Gluconate market outperformed its global counterparts, prompting import suppliers to redirect shipments to the region amidst the global market downturn in November 2023.
