Asian Benzaldehyde market performance in May reveals a mixed bag
- 13-May-2022 9:45 AM
- Journalist: Xiang Hong
New Delhi (India): After weeks of displaying intertwined pricing tendencies, Chinese market sentiments have recently been more apparent. As the situation of Covid-19 improves, the Labor Day holiday comes to an end, and crude oil prices fall, market trends for various products begin to form. As the clouds of uncertainty have dissipated, it has become simpler to gain insight into the market circumstances in China.
Benzaldehyde prices have continued to fall in the Chinese market due to the sudden drop in the crude oil value, influencing the feedstock Toluene prices. The WTI crude prices declined from $103.09/ barrel to $ 99.76 / barrel on 10th May.
Furthermore, A trader based in China revealed to ChemAnalyst that China's overall food and flavoring sectors are predicted to flatten out in May as the country returns to some normalcy after a long period of turmoil. In addition, the consistent supply rate is expected to match the stable end-user demand for food flavoring and has weighed down the Benzaldehyde prices in the Chinese domestic market.
On the other hand, India is heavily reliant on China for Benzaldehyde imports, roughly 19%, and the questions about India's projected Benzaldehyde cost trend have been crucial. ChemAnalyst talked with several manufacturers and traders to gain a unique perspective on the situation.
A trader from Mumbai revealed that "the prices of Benzaldehyde increased in the Indian market" owing to the growing demand from the downstream Food and Flavouring industries backed by the seasonal demand. Furthermore, the skyrocketing Crude oil prices, rising raw material costs, and limited supply have impacted the Benzaldehyde prices. In addition, the port congestion amidst pandemic restrictions led to the high freight charges backed by the container shortage, which has put upward pressure on the Benzaldehyde prices. As per ChemAnalyst data, Benzaldehyde prices have increased by 4% in the starting month of May.
According to ChemAnalyst, "In the upcoming weeks, the prices of Benzaldehyde are likely to decline in the Chinese market owing to the stable demand from the end-user sector. Meanwhile, in the Indian market, Benzaldehyde prices are anticipated to increase due to the escalating raw material cost. Furthermore, it is projected that the high maritime cost may affect the Benzaldehyde cost in India."