Some tags are up
By Staff -- Purchasing, 5/7/1998
After a quick uptick early in the first quarter, sodium nitrite prices will stabilize through the rest of 1997. Buyers forecast domestic prices for granular-grade product will average 38(cent)/lb for the next six months, according to Purchasing's monthly chemical transaction price survey.Some sodium nitrite prices, however, are rising. DuPont and General Chemical Corp.--the two domestic sodium nitrite producers--boosted some prices late in the first quarter. Effective February 27, DuPont increased solution-grade tags on a 100% basis by 3(cent)/lb. On March 1, General Chemical hiked free-flow grandular-food-grade prices by 2.5(cent)/lb and set a new list price of 43(cent)/lb. The company also boosted specialty-grade tags by 3.5(cent)/lb.
The pricing moves are aimed at differentiating prices for the varying grades of sodium nitrite. "Until now, all grades of dry sodium nitrite were sold at the same price regardless of product form, purity, or fitness for use," says Laura Pise, industry manager at General Chemical Corp. "As a result, some grades have historically been undervalued." Now, General Chemical's food and pharmaceutical grades of sodium nitrite will have a higher price than technical grades.
The increases coincide with tight supply conditions. To help alleviate the availability problems, General Chemical's Syracuse Works site recently received a new environmental operating permit from the New York State Department of Environmental Conservation. "The new permit allows us to increase our throughput rates and to produce an additional 5%-10%/yr, while ensuring environmental compliance at the facility," says Pise.
Because of this added capacity, General Chemical was able to cancel its sales order control program on sodium nitrite that was implemented in late 1997. "We expect supply and demand to remain in balance for 1998 with manageable leadtimes and acceptable minimum inventory levels to service our customers' needs," says Pise.
Sodium nitrite is a mature product with growth rates at GDP levels. Major applications are found in dyes, rubber chemicals, heat treatment and heat transfer salts, corrosion inhibitor, metal finishing, food, and pharmaceuticals.
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