In Q1 2024, sodium metabisulfite prices remained stable during the first half of the quarter. The stability in prices was primarily driven by steady demand from industries such as food preservation, water treatment, and textiles. These sectors maintained consistent consumption levels, supporting price stability. However, in the second half of Q1, sodium metabisulfite prices dropped due to several factors. A mild slowdown in demand from the food and beverage sector, along with increased production from major suppliers, contributed to oversupply in the market. This resulted in a price decline as suppliers adjusted to balance inventories. Additionally, lower raw material costs and reduced demand in some industries further pressed prices downward.
Sodium metabisulfite prices saw a recovery in the first half of Q2 2024, driven by a rebound in demand from key industries, especially water treatment and food processing, where sodium metabisulfite is used as a preservative and antioxidant. As production levels increased in these sectors, market participants responded with higher purchase volumes, pushing prices upwards. The recovery was also supported by tighter supply conditions, as production adjustments by key manufacturers occurred following the price drop in Q1. However, in the latter part of Q2, prices began to gradually decline. This drop was attributed to stabilizing demand after the initial recovery and an increase in inventory levels. Supply chains also normalized, leading to a decrease in pressure on prices, and ultimately, a softening by the end of the quarter.
In Q3 2024, sodium metabisulfite prices saw a gradual increase throughout the quarter. This upward movement was primarily driven by steady demand from the water treatment industry, as municipalities and industrial sectors continued to require consistent supplies of sodium metabisulfite for dechlorination and other applications. Additionally, increased demand from the food and beverage industry for preservation purposes further supported price increases. Manufacturers began to experience slight supply constraints due to logistical challenges, such as shipping delays and raw material shortages, which pushed prices higher. As the quarter progressed, limited availability, coupled with increased production costs, kept upward pressure on prices, although the pace of the price rise was slow and steady throughout Q3. In August 2024, Sodium Metabisulfite prices in China were assessed at USD 260 per MT FOB Qingdao.
In Q4 2024, sodium metabisulfite prices initially stabilized and dropped in the first half of the quarter. This drop was due to a seasonal slowdown in demand, particularly from the food and beverage sector, as consumption patterns adjusted after the peak demand period earlier in the year. Additionally, some suppliers adjusted their pricing to remain competitive, leading to price reductions. However, by the second half of Q4, prices began to improve slightly due to slightly improved trading conditions and a rebound in demand from key markets, particularly in water treatment and the pharmaceutical sector. The overall increase was moderate, and despite lingering global economic uncertainties, the market showed signs of a more stable outlook towards the end of the year. The gradual improvement was driven by the return of steady orders and some replenishment of inventory levels.