Benzaldehyde price rises in the Global Market owing to high Feedstock prices

A hike in the prices of upstream Crude oil followed by the rise in feedstock Toluene and Chlorine have raised the prices of Benzaldehyde in the global market. Toluene and Chlorine are the primary feedstock for Benzaldehyde and directly impacts the supply as Feedstock prices determine the prevailing market dynamics for Benzaldehyde. Furthermore, demand for Benzaldehyde from the pharmaceutical industries has continued to be solid and robust.

The Russia- Ukraine dispute has been a leading cause for the price rise in Crude oil. As Toluene is the derivative of Crude oil and Benzaldehyde is further produced from Toluene, the price change in Crude oil has severely affected the prices of Benzaldehyde globally. Besides, Benzaldehyde is used as the intermediate in manufacturing pharmaceutical medicines like Ampicillin, Chloramphenicol, and other products as the demand for Benzaldehyde from the end-user industries has remained strong in the global market. Thus, the prices of Benzaldehyde have continued to rise.

In addition, China, one of the top exporters of Benzaldehyde, has pushed strict restrictions in major cities owing to the resurgence of covid cases, which in turn resulted in slow production activities. In addition, demand from the pharmaceutical industry could drive weak supply chains and increase the raw material and crude oil prices, resulting in increased Benzaldehyde prices. Additionally, Lotte Chemicals, a company in South Korea that manufactures and sells raw materials including Toluene, planned to undergo maintenance recently, which in turn increased the prices of Benzaldehyde in South Korea.

In North America, the prices of Benzaldehyde increased in March as the USA is majorly dependent on China for the import of Benzaldehyde, around 42.5%. Due to the uncertainty in China because of the resurgence of Covid-19 which led to the lockdown in Shenzhen, interrupted the trade activities across the countries. Moreover, the persistent container shortage and high freight charge resulted in the soaring prices of Benzaldehyde.

As per ChemAnalyst, “The price of Benzaldehyde is likely to increase due to the expectations of high demand from the end-use industries like Pharmaceuticals and Textile. In addition, skyrocketing crude oil prices amidst the Russia-Ukraine crisis are likely to increase Benzaldehyde's input cost.”