North America
In the third quarter of 2023, Sodium Benzoate prices in CFR New York witnessed an uptick, climbing from $1235 to $1310 per metric ton. This increase contributed positively to the quarter, indicating a clear preference for higher price levels with an average quarterly rise of 1.60%. The domestic nutraceutical market experienced growth, fueled by increasing demand for Sodium Benzoate across various industries. Limited to moderate inventory levels prompted sellers to incrementally raise prices monthly, playing a significant role in sustaining the optimistic price trend in the United States. Moreover, import costs rose in the latter part of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. Despite some slowing inflation in the third quarter, market participants remained vigilant due to the Federal Reserve’s decision to raise interest rates. Notably, warehousing costs, warehouse usage, and inventory expenses surged in the United States from July onwards. Additionally, the Chinese export market saw a rise in the prices of the raw material, Benzoic acid, due to increasing energy costs, further supporting the upward trend in Sodium Benzoate prices. In summary, it is likely that importing countries followed a trajectory similar to exporting countries during this period.
Asia Pacific
In the third quarter of 2023, Sodium Benzoate prices in Asia Pacific experienced a significant rise, increasing from $1130 per metric ton in July to $1200 per metric ton FOB Shanghai by September. This trend showcased a strong inclination towards higher prices, reflecting an average quarterly increase of 1.75%. China, the world’s second-largest economy, faced slower growth than anticipated, casting a negative shadow over the beginning of the third quarter. Factors such as worsening deflation, elevated youth unemployment, and weak foreign demand contributed to this situation. The price hike of Sodium Benzoate in China during this quarter was influenced by the strengthening Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Additionally, the prices of the raw material, Benzoic acid, in the Chinese market rose due to escalating energy costs. Market dynamics revealed supply constraints as acid factories maintained low inventories. Despite gradual production resumption by maintenance companies, demand did not show significant improvement, leading to substantial market pressure. The increased value of the Yuan and the weakening US dollar raised export costs, affecting both local and foreign markets. Market players, meeting the general demand, kept their supplies relatively low, and manufacturing production remained steady throughout the period. The heightened demand and supply chain disruptions created an imbalance, resulting in upward pressure on prices. In the latter weeks of September, just before the Golden Week holidays, there was a slight increase in both freight and manufacturing due to a spike in demand and inquiries. Another factor contributing to the price surge was strategic bulk ordering by market participants looking to replenish their inventories, intensifying overall demand pressures during the holiday season.
Get Real Time Prices of Sodium Benzoate: https://www.chemanalyst.com/Pricing-data/sodium-benzoate-1185
Europe
In the third quarter of 2023, Sodium Benzoate costs in Europe demonstrated a steady pattern, experiencing a slight increase from $1185 per metric ton in July to $1265 per metric ton CFR Hamburg in September. This trend indicated a noticeable price hike, resulting in an average quarterly increase of 1.81%. As the situation stabilized and the economy began to recover in July, German suppliers of Sodium Benzoate responded by placing substantial orders to replenish stocks and meet the rising nationwide demand. However, challenges persisted in the German manufacturing sector at the beginning of the third quarter. In response to growing demand from downstream businesses, importing Sodium Benzoate from Asia, particularly China, remained a favorable option throughout the quarter. The devaluation of the Euro also played a significant role in driving up prices in Germany, as the strong US dollar compelled local enterprises to pay higher prices for imports from China. Economic factors, including high inflation and a challenging manufacturing environment in Germany, continued to impede growth, leading market investors to adopt a cautious “wait-and-see” approach. Additionally, the prices of the raw material, Benzoic acid, in the Chinese export market rose due to increasing energy costs, further supporting the upward trend in Sodium Benzoate prices. In summary, it’s probable that importing countries experienced a trajectory similar to that of exporting nations during this period.
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