North America:
In the second quarter of 2023, Sodium Benzoate prices in the US market experienced a significant decline due to sporadic shifts in supply and demand throughout the month. By the end of Q2 2023, the price had fallen, resulting in an average quarterly decrease of 3.65%. Initially, the market saw a dramatic increase in CFR New York values of Sodium Benzoate due to improved supply and demand dynamics. The relaxation of the zero-tolerance policy led to increased trade between Asia and the US, causing a mild shortage of Sodium Benzoate on domestic warehouse shelves, driven by heightened demand from end-user suppliers. Furthermore, rising prices of raw material Benzoic acid contributed to the upward price trend. However, as time progressed, the market witnessed a weakening situation, with Sodium Benzoate prices remaining weak and stabilizing. Most downstream markets experienced average demand recently, and the price of upstream Sodium Bicarbonate also displayed weakness during the month. A reduction in energy costs, a key input in sodium bicarbonate production, was observed in recent months, stemming from the global economic slowdown and declining oil prices, which further supported the downward trajectory of Sodium Benzoate. Additionally, the availability of powdered Sodium Benzoate to clear existing inventories due to seasonal changes contributed to the market’s feeble state, and distributors became cautious about placing large orders due to falling prices. It is expected that major market players will continue to reduce prices in the coming months, as feedstock prices have also declined due to surplus supply and increased production.
APAC:
The market price of Sodium Benzoate witnessed a significant collective decline in the Asia Pacific region during the second quarter of 2023, driven by weak domestic and international demand. By the end of Q2 2023, the average quarterly decline in Sodium Benzoate prices stood at 3.58%. At the outset of Q2, the market experienced an upward trend driven by increased demand from various end-use industries, including the food and beverage sector. Additionally, rising prices of raw material Benzoic acid, along with increased production rates to replenish inventories and meet anticipated market demands, kept the market situation robust. Factors such as the surprise cut in oil output announced by OPEC+ members and a positive outlook for China’s demand further bolstered the Sodium Benzoate market. Chinese exports also contributed to increased trade activities in April. The rise in energy prices and heightened production costs influenced the positive market situation. However, as time progressed, Sodium Benzoate prices exhibited a downward trend in the Chinese market due to a decline in the feedstock Benzoic acid prices. Uncertain downstream inquiries over the course of the month further weakened the market. Demand for Sodium Benzoate from downstream sectors like food and beverages, cosmetics, and preservatives declined amid uncertain economic conditions and increasing inflation rates, halting trade processes. The inventory levels of Sodium Benzoate remained high as production rates increased. Suppliers of feedstock Benzoic acid offered their products at lower prices in the spot market, reducing cost support for Sodium Benzoate. Major market players reported that buyers were hesitant to place large orders, anticipating further price declines.
Get Real Time Prices of Sodium Benzoate: https://www.chemanalyst.com/Pricing-data/sodium-benzoate-1185
Europe:
In the second quarter of 2023, declining demand for Sodium Benzoate led to a decrease in market prices, with Sodium Benzoate prices experiencing an average quarterly decline of 3.65%. At the beginning of Q2, Sodium Benzoate’s price trajectory exhibited a significant upward trend. Rising domestic demand was the primary driver of higher prices for Sodium Benzoate in April, especially in the German market, which saw increased production in exporting nations in response to rising demand and high energy prices. The unexpected oil output cut decision by OPEC+ members also had a favorable impact on the market environment. Increased energy costs, elevated production expenses, and surging shipping costs contributed to the market’s continued strength. However, as the second month began, prices started to decline, significantly affected by weak purchasing momentum and oversupply. Increased availability of Sodium Benzoate in Germany, driven by increased production and imports from other countries, contributed to the depreciating trend. Moreover, declining prices of raw material Sodium Bicarbonate further supported the downward trajectory. In response to seasonal changes, merchants chose to destock their inventories to prevent potential damage, leading to the forced sale of Sodium Benzoate at lower prices. Buyers remained cautious, awaiting further price drops. Import offers increased but remained substantially below domestic prices. European buyers delayed restocking due to limited end-user demand and held pessimistic price expectations.
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