Benzaldehyde Price To Witness a Downward Trend In The Chinese Market
- 21-Jul-2022 4:52 PM
- Journalist: Li Hua
During the previous week, Benzaldehyde Prices have witnessed a downtrend in the domestic Chinese market. Benzaldehyde costs declined by approximately 1.0% in the week ending July 15th. Additionally, the primary factor for the price fall is the decreased prices of raw materials Toluene and Chlorine. In addition, For the third quarter of 2022, the Toluene market plans to continue production by destocking its stocks. As a result, the manufacturer of Toluene sells at lower margins.
In addition, China is among the manufacturers of Benzaldehyde, and prices have plunged on the back of lesser trading activities and sufficient product availability in the domestic market. On the demand front, the weak demand from end-user sectors, including food, flavouring, and cosmetics industries, has other facets to decreasing Benzaldehyde prices. On the supply side, port congestion amidst lousy weather and high yard density has impacted trade activities. At the same time, rising numbers of positive test cases for coronavirus in Shanghai have raised fears of a new draconian lockdown in the city, which could negatively affect global supply chains.
Also, the manufacturer of Benzaldehyde has been reducing its profit margins while offering its products at markedly lower costs. Additionally, the downward tendency in all negotiated agreements' prices has helped to support the pricing trend. Besides, diminished downstream demand for Benzaldehyde, decrease in raw material market value, less purchasing power, declining trading activities, and other factors all negatively squeezed the market's perception of Benzaldehyde in the Chinese market.
According to ChemAnalyst, "Prices for Benzaldehyde will likely continue going down due to the sharp fall in the feedstock Toluene and Chlorine prices. In the meantime, the Chinese Benzaldehyde could cut manufacturer profit margins in the coming days. In addition, as per the market sources, the tightening of monetary policy worldwide will slow the rise in inflation, which will likely result in weakening demand".