Sodium bicarbonate Price Trend

Sodium Bicarbonate Prices (Q1 2022)

Asia

Sodium Bicarbonate prices in India rose from 432.2 USD/MT on 7th January 2022 to 464.5 USD/MT in 14th January 2022, increasing by 7.2% in just one week. The prices rise came as a result of increased freight costs and surging raw material prices. Electric power and coal faced supply shortages which in turn increased in the energy costs causing sodium bicarbonate prices to shoot up in the region. Indian imports from China also declined with the rise in shipping costs which affected the supply and impacted the prices. As the omicron virus spread in the region, lockdowns were imposed in China which caused supply chain disruptions as a result of delivery issues and worker shortages. At the same time, demand for sodium bicarbonate in the food and beverage industry increased rapidly in the domestic Indian market contributing to the price rise.

Sodium Bicarbonate Prices (Q4 2021)

Asia

In the Chinese domestic market, prices were estimated at 452 USD/MT FOB Qingdao during the first week of October, owing to solid offtakes. In India, prices for Ex-Mumbai increased dramatically in the fourth quarter, rising from 378.04 USD/MT to 415.11 USD/MT between October and December. Increased production costs as a result of price inflation also led to the country's price escalation. Due to the persistent need in the Indian domestic economy, manufacturers of sodium bicarbonate changed their offers to maintain profit margins. Prices are predicted to remain stable in Q1 2022 since the domestic demand fundamentals are unlikely to alter anytime shortly in the country.

Europe

Sodium Bicarbonate's market trend in Europe was stable throughout the fourth quarter. In Q4 2021, downstream manufacturers reported an increase in demand. Commodity price increases, ballooning freight costs, high input prices, supply constraints, and the advent of the Omicron aggravated the European region's market for the chemical. In terms of demand, this quarter saw robust offtakes from the food and pharma & beverage industries.

North America

Prices continued to rise in the Q4 of 2021 across the North American region, owing to strong demand from food and beverage, pharma, and other downstream businesses. In Q4, the fragmented supply chain and rising raw material costs aided the market trend. Soaring freight costs, lengthy transportation challenges, and the unexpected emergence of the coronavirus Omicron have compounded the surge in the prices across the market in North America.

Latin America

The market was boosted by rising building activity and increased usage of sustainable materials across a variety of end-use sectors. The glass industry is a significant end-user of soda ash, which is produced using sodium bicarbonate as a feedstock. Consumer choice for glass containers over plastic alternatives increased as environmental concerns and consumer awareness of sustainable products increased, boosting product demand. Along with it, the increased demand for agro-chemicals, especially in Brazil, to boost crop yields and meet an exploding population's constant demand for food boosted soda ash usage in the chemical sector.

Sodium Bicarbonate Prices (Q1-Q3 2021)

Asia

In Q1, the Asian market exhibited mixed sentiments, with demand mostly differing by nation. However, demand for the Asia-Pacific market as a whole remained constant, with prices oscillating within a narrow range. In China, its value continued its downward trend, supported by stable demand and widespread availability. In India, prices dipped in February before regaining strength in March. This was due to increased production operations in the face of low demand. Prices in China and India were around 300 USD/MT and 261.8 USD/MT in February.

The Asian market experienced conflicting attitudes throughout Q2, which differed by nation. In China, the chemical remained buoyant throughout the quarter despite unpredictable demand conditions, while pricing remained firm due to factors such as inflation and rising raw material costs. Meanwhile, in India, pricing was mostly determined by demand dynamics, which were rapidly altering as a result of the country's epidemic comeback. However, numerous Indian manufacturers increased their sodium bicarbonate offerings significantly to offset the substantial increase in overall manufacturing costs. In June, Tata Chemicals increased their ex-works bids for Technical Class sodium bicarbonate to 275.61 USD/MT, an increase of around 13 USD/MT over the previous revision.

Prices increased significantly in Asia during the q3 of 2021, owing to strong demand from downstream sectors. Additionally, delayed imports exacerbated by various causes such as congestion on interoceanic trade routes, lack of shipping containers, and coronavirus minimal protocol measures resulted in feedstock scarcity, which impacted the pricing trajectory of the chemical. In India, the market outlook remained positive, owing to robust demand and constrained supply fundamentals that maintained a high pricing trend throughout the quarter. Additionally, increased manufacturing costs as a result of freight congestion and inflation prompted manufacturers to create positive changes to maintain profitability. As a result, the price increased significantly and stabilised at roughly 374.07 USD/MT Ex-Mumbai.
 
Europe

The European market remained stable in Q1 2021, aided by a slowly strengthening economy following the March pandemic. Raw material accessibility remained a worry in the region for a variety of reasons, including lower transportation activity following adverse weather situations that restricted imports from the United States and a significant scarcity of shipping containers aggravated the region's supply shortage. However, demand from downstream categories such as animal feed and pharmaceuticals remained stable, which aided the market's overall performance in this quarter.

European makers of the chemical likewise reported stable prices while supply remained adequate. In Europe, demand stayed constant in the pharmaceutical industry, where it is used in the manufacture of antacids, but demand in other industries remained low. Demand for food-grade materials also increased significantly, with rising prices also affecting regional demand. On the other side, the price of this product was primarily influenced by strong demand from the region's automotive sector, since the European automotive industry demonstrated higher offtakes than other regions.

The pricing trend accelerated in the European market during the third quarter of 2021. The demand prognosis remained stable during the quarter, owing to an increase in its offtake from downstream industries as a result of the revival of commercial and industrial activity. Additionally, delayed imports and hefty freight costs contributed to the increase in the price of Sodium Carbonate during this period.

North America

Demand in North America was relatively stable throughout the quarter. The food, pharmaceutical, and animal feed segments drove demand, but other segments such as water treatment and industrial chemicals performed poorly in the region. Despite constant demand, supply remained constrained across the region, owing to the scarcity of raw materials such as ammonia and weather-related restrictions. The freezing impact in the United States of America slowed industrial activity in several downstream sectors, reducing the availability of critical raw materials.

Prices continued to grow steadily during the third quarter, supported by robust demand from downstream end users and rising input prices. On the demand side, robust demand from the provincial pharmaceuticals sector was noted all across the quarter, while demand from other categories increased dramatically due to industrial recovery. Additionally, leading makers of sodium bicarbonate indicated that the automobile and solar cell markets were very active. As a result, a significant rise in the cost of this product was seen in the United States of America during Q2 2021.

In the third quarter of 2021, prices in North America increased. Demand from the feed, food, and pharmaceutical industries remained strong in the United States during this quarter. Despite the abundant supply of the chemical, a price increase was noted, owing to the increase in the prices of its raw components. Additionally, many production models in the United States remained closed as a result of the Ida hurricane, which made landfall on the Gulf Coast of the United States in August and directly impacted the feedstock supply chain, resulting in a spike in the price during this period.

Latin America

Due to the growing demand for soda ash in the pharma industry, the market for soda ash developed considerably. Sodium bicarbonate is a critical component in the production of soda ash. Due to its increasing demand, the price grew substantially throughout the year.

Sodium Bicarbonate Prices Overview 2020

Asia

Since the Asia Pacific Region dominates the region in terms of sodium bicarbonate manufacturing, it has seen extraordinary growth, as evidenced by its steady increase in usage during the Covid-19 Outbreak. For the quarter ended December, one of India's top suppliers of the chemical reported a significant increase in its imports. While domestic demand in nations such as India and China remained stable to solid, the pharmaceutical sector's consistent increase in export demand provided a major boost to its market fundamentals. As a result, prices in India averaged 280 USD/MT for the quarter ended December.

Europe

In Europe, demand remained stable to solid, owing to its continued use in the pharmaceutical and healthcare sectors. As was the case in Europe, demand for packaged food materials grew in response to the danger of a new coronavirus, which increased its demand in the food business. In keeping with the minor increasing trend in demand fundamentals in Europe, regional market prices climbed marginally as well.

North America

In Q4, demand from end-use industries such as chemicals, pharmaceuticals, and water treatment was robust as people maintained a high degree of hygiene and cleanliness following the re-emergence of Coronavirus in several areas across the United States. The demand remained robust, bolstered by government attempts to boost regional R&D operations. Pharmaceutical firms aided in the region's high demand for sodium bicarbonate in Q4, 2020.

Latin America

Coronavirus's quick spread had a significant impact on South American markets, which had been in lockdown mode in 2020. Due to the significant lockout, the consumer sector has also lost interest in sodium carbonate materials. The abolition of all types of domestic transit within countries is one of the industry's biggest challenges. Additionally, due to the temporary closure of large segments of the construction and automotive industries in several countries as a result of an increase in COVID-19 cases among workers on manufacturing sites and to contain the spread of COVID-19 in the South America region, the market grew significantly slower.