Sodium Nitrate Prices: Trend, Demand & Supply, Market Analysis | ChemAnalyst

Posted November 17, 2023 by chemanalystreports

In the third quarter of 2023, there was an uptick in CFR New York rates for Sodium Nitrate, rising from $725 to $800 per metric ton.

For the Quarter Ending September 2023

North America

In the third quarter of 2023, there was an uptick in CFR New York rates for Sodium Nitrate, rising from $725 to $800 per metric ton. This increase positively impacted the overall outcome for the quarter, reflecting a clear preference for higher pricing levels with an average quarterly uptrend of 2.08%. Initially, prices decreased at the beginning of Q3 due to weak nitric acid prices, a crucial raw material. However, by August, the domestic Sodium Nitrate market in the United States showed improvement, fueled by heightened demand across various industries. The shift from limited to moderate inventory levels prompted sellers to incrementally raise prices each month, contributing to an optimistic price trend. Additionally, fluctuations in exchange rates between the US dollar and the Yuan resulted in increased import costs in the latter part of the quarter. While inflation slowed somewhat in Q3 due to significant changes in the US economy, caution prevailed among market participants due to the Federal Reserve's decision to raise interest rates. Moreover, Nitric acid prices in the Chinese export market increased, driven by escalating energy costs, further influencing the upward trajectory of Sodium Nitrate prices. Consequently, commodities like Sodium Nitrate experienced price hikes due to increased inventory management and storage expenses. In summary, importing nations likely mirrored exporting countries in their market trends during this period.

Asia Pacific

In the third quarter of 2023, the cost of Sodium Nitrate witnessed a significant upturn, climbing from $605 per metric ton in July to $680 per metric ton FOB Shanghai by September. This trend indicated a clear preference for higher prices, with an average quarterly increase of 2.54%. China, as the second-largest global economy, faced a slower growth rate than anticipated in the first half of 2023, extending into the latter part of the year, casting a negative shadow at the beginning of Q3. Sodium Nitrate prices decreased in the initial month of Q3 due to supply and demand imbalances and a weak nitric acid raw material market. However, as August unfolded, prices began to rise due to worsening deflation, increased youth unemployment, and subdued foreign demand. Various factors contributed to the price surge of Sodium Nitrate in China during this quarter, with the most influential being the strengthening of the Chinese Yuan (RMB) against the US dollar and heightened local demand from end-user businesses. Simultaneously, Nitric acid prices in the Chinese market rose due to increasing energy costs. Market dynamics unveiled supply constraints as acid factories maintained low inventories. While maintenance companies gradually resumed production, demand did not see a significant improvement, leading to substantial market pressure. The appreciation of the Yuan and the depreciation of the US dollar raised export costs, impacting both local and international markets. In response to general demand, market participants kept their supplies relatively low, and manufacturing production remained consistent throughout the period. The heightened demand and disruptions in the supply chain created an imbalance, resulting in upward price pressure. In the final weeks of September, just before the Golden Week holidays, both freight and manufacturing experienced a slight increase due to a spike in demand and inquiries. Another factor contributing to the price surge was market participants strategically placing bulk orders to replenish their inventories. The heightened demand prompted many buyers to accelerate their Sodium Nitrate procurement, intensifying overall demand during the holiday season.

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Throughout the third quarter of 2023, Sodium Nitrate prices in Europe followed a consistent trend, experiencing a modest increase from $665 per metric ton in July to $760 per metric ton FOB Hamburg by September. This trend marked a noticeable price surge, resulting in an average quarterly rise of 3.30%. In July, as the economic situation stabilized and began to recover, German Sodium Nitrate suppliers initiated substantial orders to replenish their stocks and meet the growing national demand. However, industry experts noted that the German manufacturing sector still faced challenges in the early part of the third quarter. In response to heightened demand from downstream businesses, importing the raw material Nitric acid from Asia, particularly China, remained a favorable choice throughout the quarter. The devaluation of the Euro also played a significant role in driving up prices in Germany, as the robust US dollar forced local enterprises to pay higher import costs from China. Economic factors, such as high inflation and a challenging manufacturing environment in Germany, continued to hinder growth, prompting market investors to adopt a cautious "wait-and-see" strategy. Furthermore, raw material Nitric acid prices in the Chinese export market increased due to rising energy costs, further contributing to the upward trajectory of Sodium Nitrate prices.
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Last Updated November 17, 2023