Benzoic Acid to Showcase Opposite Trends in Asian Countries
- 01-Jun-2022 2:07 PM
- Journalist: Patrick Knight
Mumbai, India: Benzoic Acid price has been showcasing contrasting pricing trends in India and China. In China, the value of Benzoic Acid is soaring, whereas it is depleting in the Indian market. It is shocking to witness that the Benzoic Acid pricing trends are taking divergent paths in these countries. The market seems more astonishing after acknowledging that China is the major exporter of Benzoic Acid to India.
Market analysis of the Chinese Benzoic Acid market revealed that the Benzoic Acid price is surging on the back of increasing Toluene value, which is the feedstock of Benzoic Acid production. Furthermore, strong demand from downstream industry has also been contributing to rise this price. In addition, skyrocketing crude oil prices, fuelling freight charges and ongoing port congestion amidst Russia-Ukraine war tensions has been supporting the price hike of Benzoic Acid in the Chinese domestic market.
However, the prices of Benzoic Acid are declining in the Indian market owing to the start of the destocking season. In June, Indian manufacturer destocks their Benzoic Acid inventories to avoid spoilage of powdered form Benzoic Acid in the upcoming monsoon. To empty their inventories, manufacturers don’t mind selling their stocks at a much lesser price value. Consequently, the price of Benzoic Acid has started decreasing, and it will continue to decline till the end of June. Meanwhile, the price rise of Benzoic Acid in China has not been affecting the prices of Benzoic Acid in India because, for now, Indian Manufacturers have enough inventories, and they aim to sell off the already existing stocks, so they are not really buying Benzoic Acid from China or other countries.
As per ChemAnalyst anticipation, “In the Chinese market, the Benzoic Acid value would keep growing for now due to the rising Toluene price value, which in turn is increasing on account of escalating crude oil prices. However, In India, the prices of Benzoic Acid would be declining for the whole month and again start surging only on the onset of July.”