Depreciating Sodium Benzoate Value in Chinese Market
- 25-May-2022 3:35 PM
- Journalist: Nina Jiang
Qingdao, China: It is shocking to witness that Sodium Benzoate prices have been falling in the Chinese market at this time of the year. What could be the reason behind the sudden drop in prices of a commodity which has consistently been rising for several months? With fluctuating crude oil prices throughout the month, the feedstock Benzoic Acid prices kept flickering. So, the feedstock price value could not be the factor behind this drop in Sodium Benzoate prices. Likewise, downstream demand for food additives such as Sodium Benzoate does not decrease much in Asian countries, so it cannot also be a restraining factor in the Sodium Benzoate market.
ChemAnalyst experts talked with several manufacturers and traders from China to get a closer look into the matter. They gained crucial insights into the whole Sodium Benzoate market scenario in the Chinese domestic market. A Shanghai manufacturer confirmed that Sodium Benzoate prices have been decreasing in the Chinese market due to the ongoing destocking of inventories. Manufacturers are clearing out their stocks, so they don’t mind selling the product at a lower cost. He added that the companies are planning to start their production again, so they first want to sell off their existing stocks.
On the contrary, the prices of Sodium Benzoate have been rising this month amidst escalating feedstock prices and growing demand from end-user industries. Furthermore, Indian companies plan to destock their inventories in June to avoid spoilage of the product in the coming monsoon season.
As per ChemAnalyst, "Sodium Benzoate prices will be declining till the end of May because of continuing destocking of inventories at several major production plants. Then, as June begins, the price of Sodium Benzoate will begin to rise again due to rising feedstock prices, which will raise production costs and cause a slight increase in offtake from end-user industries.”