The demand for Sodium Molybdate in North America remained moderate to low in the first quarter of 2023. Slow economic activity was the primary driving factor, despite production continuing without any interruptions. Although the demand for dye and pigment, and water treatment showed some improvement by the end of the quarter, it remained lower than expected due to prolonged inflationary pressure. Additionally, concerns about the FED’s frequent price revisions on domestic interest rates were putting pressure on the country’s economy and affecting demand for the product. Labor shortage also remained a matter of concern for the country, which led the Houston port to close for a couple of days.
The Indian Sodium Molybdate Prices witnessed a significant price drop of 19.7% in March 2023 due to lower demand and increased supply, including cheaper imports from China and South Korea. Although production activities remained strong in India, the decrease in prices was supported by a decline in overseas demand. Additionally, Chinese producers had high inventories, anticipating an increase in demand from both domestic and foreign markets, which did not materialize, leading to an abundance of the product in the market. As a result, imported products were cheaper than initially expected, further impacting the price drop.
The European economy has been underperforming due to the impact of the Russia-Ukraine war, which has affected regional economic activities. Demand for Sodium Molybdate from the domestic automotive sector has been low, while other sectors, such as water treatment and fertilizers, have also experienced seasonally low demand. Despite some supply chain disruptions caused by snow, supplies remained stable to firm, and the narrow demand-supply gap supported a downward price trend. The threat of recession decreased, leading to optimism for future demand.
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