For the Quarter Ending September 2024
North America
In the third quarter of this year, the sodium nitrite market in North America exhibited a mixed trend, with prices experiencing fluctuations throughout the period. In the early weeks of the quarter, sodium nitrite prices remained relatively stable. The prices were influenced by easing tensions in the Middle East, which contributed to a steady pricing environment for sodium nitrite.
However, low demand in downstream sectors, particularly within the food preservation and agrochemical industries, also helped maintain price stability during this period. However, in the last two months, sodium nitrite prices saw significant volatility, driven by supply challenges, weak industrial output, and cautious consumer behavior. Disruptions, such as plant shutdowns and logistical issues, further exacerbated the situation.
Rising geopolitical tensions and tighter supply, exerted increased cost pressure, pushing sodium nitrite prices upward. Domestic inventories of sodium nitrite remained low, prompting higher purchases to meet immediate demand. Additionally, the recent US economic activity appears robust, suggesting that the recession fears that emerged over the summer may have been exaggerated.
APAC
In Q3 2024, the Sodium Nitrite market in the APAC region witnessed a significant downturn, with prices experiencing a notable decline. This decrease can be attributed to various key factors influencing market dynamics. We observed a substantial -25% decrease in prices compared to the same quarter last year, indicating a significant shift in pricing trends. Moreover, the quarter-on-quarter decline of -7% further underscores the challenging environment for Sodium Nitrite pricing. Notably, within Q3 2024, there was a pronounced -10% decrease in prices between the first and second halves of the quarter, reflecting ongoing downward pressure on market values. China, in particular, saw the most significant fluctuations in Sodium Nitrite prices during this period. The market experienced notable price changes, with a consistent downward trend throughout the quarter. Seasonal variations, coupled with weakening demand and excess inventory levels, contributed to the overall negative sentiment in pricing. The latest quarter-ending price for Sodium Nitrite in China stood at USD 363/MT - EXW Qingdao, reflecting the prevailing downward pricing environment in the region.
Europe
In the third quarter of 2024, the Sodium Nitrite market in Europe noted mixed trends. In Q3 2024, the end-use FMCG sector experienced a challenging environment as consumers increasingly prioritized cost savings and sought more affordable options in the European region. Consumers continued to trade down and were mainly focusing on need-on-basis procurement. As a result, the revenue growth was also impacted as noted by most of the FMCG players. Consumers of Sodium Nitrite were mostly focusing on volume recovery as a primary driver for revenue, moving away from reliance on price increases. During this quarter, the freight charges also declined by considerable margins, which also led to imports of low-priced goods from the Asian markets. Overall, the underperformance in the major economies in Europe, particularly Germany had a major impact on the Sodium Nitrite market. Though towards the end of the quarter, few recoveries in the trade and economic activities of European nations were noted, however, it still could not provide adequate support to the Sodium Nitrite prices.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Sodium Nitrite market in North America saw an upward trend. Prices rose in the initial weeks due to increased consumer demand, particularly from the industrial, food, and beverages sectors as summer approached, where the demand for food preservation is the highest. The quarter was characterized by rising manufacturing costs, driven by higher prices for upstream raw materials and sustained demand from downstream industries.
In the mid-Q2 of 2024, Sodium Nitrite prices continued their upward trajectory due to increased demand and supply constraints. While the food and, beverages industries showed firm demand, the impact of upstream raw materials was also significant. Business confidence improved slightly during the quarter, but demand remained subdued in sectors other than water treatment. The weaker-than-expected Q1 GDP was largely attributed to softer net exports and inventory investment, which offset stronger domestic economic activity.
In the final month of the quarter, Sodium Nitrite prices increased further due to ongoing supply stress and robust domestic demand. Upstream prices continued to influence the market, while higher freight charges, driven by geopolitical tensions and supply concerns, also added pressure. Despite ongoing supply chain challenges, the U.S. economy showed positive signs with projections of high inbound cargo volumes, fostering optimism among industry participants about the future.
APAC
In Q2 2024, the pricing environment for Sodium Nitrite in the APAC region has been distinctly characterized by a downward trajectory. This quarter has seen significant price contractions, influenced by a confluence of factors impacting market dynamics. High inventory levels coupled with slower consumer inquiries have exerted substantial downward pressure on prices. The robust industrial activity, indicated by manufacturing PMI data, has not translated into heightened demand, as ample material availability has led to an oversupplied market. Concurrently, a sluggish procurement rate and substantial built-up inventories have stunted new supply needs, reinforcing a bearish market sentiment. Focusing specifically on China, which has experienced the most notable price adjustments, the market has been particularly volatile. Overall trends highlight a seasonally driven downturn, where warmer months typically see increased demand for food preservation chemicals; however, this year, the substantial existing inventories have mitigated the typical seasonal uptick. Compared to the same quarter last year, prices have plummeted by 30%, reflecting a sharp market contraction. From the previous quarter in 2024, there was an 8% decline, underscoring a continued negative trend. The first half of the quarter saw a 4% price drop compared to the second half, underscoring persistent downward pressure. Conclusively, the latest quarter-ending price for Sodium Nitrite in China settled at USD 423/MT EXW Qingdao, reflecting an overarching negative pricing environment throughout Q2 2024.
Europe
The European Sodium Nitrite market continued to face challenges in the second quarter of 2024. Throughout the quarter, prices remained on a downward trend, reflecting sustained subdued demand from downstream sectors such as food and beverages. The manufacturing industry in the Eurozone struggled, with new orders experiencing a notable decrease coupled with deterioration in the manufacturing PMI of major economies in Europe. In the last two months of Q2, prices continued to decline as low demand persisted, and consumer inquiries remained weak. The supply chain operations noted improved vendor performance due to limited market transactions and market sentiments remained negative. By the end, prices further dropped due to sustained subdued demand and decreased upstream raw material prices. Additionally, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal. These factors led to delays and increased freight charges. Moreover, high interest rates increased the cost of financing significant purchases, adding to the market's challenges. Overall, the Sodium Nitrite market in Europe encountered continued downward pressure in Q1 2024 amid persistent demand weaknesses and external trade disruptions.
For the Quarter Ending March 2024
North America
The Sodium Nitrite market in North America experienced a mixed pricing trend in the first quarter of 2024. Initially, market sentiments were positive in January, driven by increased production rates and heightened demand from the downstream food and beverages industry. However, in the following two months of Q1, Sodium Nitrite prices plummeted due to a slowdown in demand in the same industry and subdued inquiries from both domestic and international market participants.
Uncertainties surrounding the economy eased further during this period while the industrial performance improved as suggested by the manufacturing PMI data. Additionally, consumer confidence noted improvement this quarter. However, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal.
These factors led to delays and increased freight charges, impacting the Sodium Nitrite market. Moreover, high interest rates further exacerbated the situation by increasing the cost of financing significant purchases. As a result, the Sodium Nitrite market in North America encountered notable fluctuations in pricing dynamics during the first quarter of 2024.
APAC
In Q1 2024, the APAC region experienced a downward trend in Sodium Nitrite prices. Various factors influenced market prices during this quarter. The demand for Sodium Nitrite remained low in the downstream industries, particularly in the food and beverages sector, resulting in decreased procurement and sluggish market activity. Additionally, the market saw ample material availability, which further contributed to the downward pressure on prices. China, in particular, witnessed significant price changes during this period.
The market dynamics in China were weak, with low demand and surplus inventories leading to a decline in prices. The Lunar New Year holidays also affected market performance, as many factories operated at reduced capacity or remained closed, affecting production levels and demand. Comparing Q1 2024 to the same quarter last year, there was a substantial decrease of 29% in Sodium Nitrite prices.
Furthermore, the quarter-on-quarter comparison revealed a decrease of 17%. Within the quarter itself, prices declined by 6% from the first half to the second half. Overall, the pricing environment for Sodium Nitrite in the APAC region during Q1 2024 can be described as negative, with prices experiencing a consistent decrease throughout the quarter. As the quarter came to a close, the latest price for Sodium Nitrite in China was recorded at USD 460/MT - EXW Qingdao.
Europe
The European Sodium Nitrite market continued to face challenges in the first quarter of 2024. Throughout the quarter, prices remained on a downward trend, reflecting sustained subdued demand from downstream sectors such as food and beverages. The manufacturing industry in the Eurozone struggled, with new orders experiencing a notable decrease coupled with deterioration in the manufacturing PMI of major economies in Europe.
In the last two months of Q1, prices continued to decline as low demand persisted, and consumer inquiries remained weak. The supply chain operations noted improved vendor performance due to limited market transactions and market sentiments remained negative. By the end, prices further dropped due to sustained subdued demand and decreased upstream raw material prices. Additionally, global trade faced challenges due to supply chain constraints caused by the Israel-Hamas conflict and drought in the Panama Canal. These factors led to delays and increased freight charges. Moreover, high interest rates increased the cost of financing significant purchases, adding to the market's challenges. Overall, the Sodium Nitrite market in Europe encountered continued downward pressure in Q1 2024 amid persistent demand weaknesses and external trade disruptions.
For the Quarter Ending December 2023
North America
In Q4 2023, the Sodium Nitrite market in the USA showcased mixed sentiments due to various factors. Weak demand from downstream sectors, including food and beverages and other end-use industries, played a pivotal role in shaping market sentiments. Moreover, the influx of low-priced imports exerted downward pressure on prices, given the sluggish nature of consumer inquiries.
Nevertheless, the domestic market boasted ample material availability, contributing to constrained procurement and a subsequent price decrease of the product. In the United States, where the most notable price fluctuations occurred in the region, the market exhibited a bearish scenario. Weak demand persisted, accompanied by unfavorable market sentiments due to economic factors. The deteriorating business confidence led to minimal inquiries from downstream industries.
Furthermore, the practice of destocking was widespread during this month, influenced by consumer hesitancy to retain excess inventories. Simultaneously, the traditional year-end holidays typically resulted in decreased industrial activity. Consequently, manufacturing firms opted to either slow down their operations or temporarily suspend them, exacerbating the decline in demand.
APAC
The fourth quarter of 2023 (Q4) for Sodium Nitrite witnessed a stable market situation in the APAC region. The demand from the downstream food and beverages industry for Sodium Nitrite as a food preservative remained moderate, with no significant inflow of new orders from the overseas consumer market. However, competition from imports, primarily from China, affected domestic businesses, despite sluggish demand in the eurozone and the United States. The availability of Sodium Nitrite was sufficient to fulfill the domestic demand, and steady production rates were maintained by the domestic manufacturers. In China, the market sentiments were bearish, with a moderate to high supply of Sodium Nitrite and a drop in prices due to sellers adjusting their selling prices. The trend and correlation price percentage of Sodium Nitrite in China for Q4 2023 was -19%, with a percentage change of -11% between the first and second half of the quarter. The percentage change in price from last year's same quarter was -23%. The latest price of Sodium Nitrite - EXW Qingdao in China for Q4 2023 was USD 503/MT. Overall, the primary reasons that impacted the market for Sodium Nitrite throughout the quarter were the unstable market situation, moderate demand, and competition from imports.
Europe
In the final quarter of 2023, the European Sodium Nitrite market witnessed a bearish trend, with prices consistently moving downward throughout this period. In October, the decline in prices was attributed to subdued demand from downstream sectors, including food and beverages and other end-use industries. Manufacturing production in the Eurozone contracted significantly, marked by a notable decrease in new orders. Despite a slight improvement in the manufacturing PMI, it indicated a prolonged downturn in the sector. Moving into November, prices continued their descent, driven by persistent low demand from downstream industries. The consumer market observed ample material availability in the region. Despite a slight improvement in the PMI, manufacturing activities remained on a downward trajectory. The supply chain continued to ease, and vendor performance improved amidst ongoing subdued consumer demand and limited market transactions. December witnessed a further decline in prices due to sustained subdued demand. Downstream industries maintained weak consumer inquiries, resulting in negative market sentiments. The prices of upstream raw materials dropped, and factory gate deflation persisted. Year-end holidays and destocking efforts contributed to reduced industrial activity, prompting manufacturing companies to either slow down their operations or temporarily suspend them.
