Increasing sodium sulfate production in Mexico and the oversupply situation in the U.S. to improve negotiation power of buyers

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By: Mukilan K -- Research Analyst, Specialty Chemicals

27 April, 2017

Increasing sodium sulfate production in Mexico and the oversupply situation in the U.S. to improve negotiation power of buyers
ARTICLE

Abstract:

Sodium sulfate market is seeing a flat demand due to the high maturity of soap and powder detergents in the U.S. With uncertainty in market demand, the US manufacturers of sodium sulfate are depending more on exports; over 50 percent of sodium sulfate production is earmarked for export to neighboring region. As the demand for sodium sulfate is growing in Latin America, manufacturers in Mexico have added some capacity to cater to the growing demand; a new plant is expected to come online in 2017.

  • With the growing capacity in Mexico and lackluster domestic demand in the U.S., will the domestic manufacturers in the U.S. be able to sustain Sodium Sulfate production?
  • Will the U.S. continue to be the major exporter of sodium sulfate? Will Mexico be the next big sodium sulfate manufacturer?
  • Will this lead to a price war among sodium sulfate manufacturers? How does the current situation help FMCG category managers?
     

Sodium sulfate market dynamics in the U.S.

Demand is expected to be flat for sodium sulfate in the U.S. with expected growth rate of less than 1 percent till 2019. Sodium sulfate is majorly used in detergents with over 45 percent of it going into the production of soap and powder detergents.




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