Encouraging Focus From End-User Surge Prices Of Potassium Sorbate In The Chinese Market
- 13-Jul-2022 5:09 PM
- Journalist: Xiang Hong
Shanghai, China- The Potassium Sorbate market in China rose to its higher level, where limited supplies and the withdrawal of inventories resulted in an upward price trend. As of 9th July, the prices of Potassium Sorbate in China soared to USD 6240/ton FOB Shanghai. The escalating raw material Crotonaldehyde prices and strong demand from downstream industries continued to uplift the market for Potassium Sorbate.
Expected soar freight charges due to the Russia-Ukraine war, followed by a reduction in the frequency of freights, eventually constrain the supply rate of raw material Crotonaldehyde in the country. As a result of these circumstances, the shortage of raw materials is propelling up the price value of Potassium Sorbate in the Chinese market.
When we observe the market fundamentals of China, the prices remained high with the region's lack of stocks or lower level of inventories. Due to positive regional fundamentals, traders observed demanding and purchasing the product on a continuous basis. According to a reliable market source, increased demand from the domestic market and high manufacturing costs are the leading causes of this Potassium Sorbate price increase.
Furthermore, the need for preservatives in the foreign market is gradually increasing. The elevating downstream demand from the pharmaceutical industry would contribute to the price hike of Potassium Sorbate in the Chinese domestic market. In addition, the growing prices of feedstock Crotonaldehyde would add to the already augmented price values of Potassium Sorbate in the regional market.
According to ChemAnalyst, the prices of Potassium Sorbate in the Chinese market are expected to remain keen with an incline price trend. However, the price has no mentality of reduction on the back of a shortage of inventories, showcasing high purchases and strong demand from end-user industries. Exports of Potassium Sorbate from China are expected to increase due to continuous demand in the overseas market.