The Salicylic Acid market in China continued to be relatively weak through January, continuing the trends evident in December, as demand has not picked up strongly, and therefore new spot trades have been limited because of customers using existing inventory. Production levels remain stable, with plenty of supply from both domestic and international sources, meaning there is little to no competitive pressure for sellers, which helps keep prices stable in the near term, and does not provide any impetus for seller price increases. Supply and inventory remain ample due to steady production at primary production sites and efficient transportation, but there is no evidence that demand from overseas will become more urgent, as it appears buyers are only buying inventory replacements for their existing stocks. There is some support for Salicylic Acid use from the Pharmaceutical and Personal Care Industries, but not high enough to offset general market caution by most of the industry. Overall, there has not been much trading activity for Salicylic Acid through the fourth week of January. Market analysts expect a change in sentiment in February, as it is anticipated that prices will rebound as production schedules restock activities, and new foreign inquiry interest.
