Escalated Demand With Higher Customer Inquiry Supports Sorbic Acid Prices in Germany and China
- 14-Nov-2022 5:05 PM
- Journalist: Timothy Greene
Sorbic Acid prices showcase an upward trajectory in Germany and China at the start of November 2022 due to an increase in downstream demand from various end-user sectors. Before this, the price of Sorbic Acid declined by 1.29% in Germany and 0.89% in China, respectively, during October 2022, leading to the piling up of stocks with the market participants. However, in November 2022, Sorbic Acid prices, a pharmaceutical excipient, increased to 1.20% in Germany and 2.94% in China.
The surge in Sorbic Acid prices in November 2022 is due to robust demand from end-user pharmaceutical and food sectors. German buyers started trading due to the rising inquiries and insufficient inventories, keeping the prices of Sorbic Acid on the upper side. Additionally, supply disruptions from various exporting countries support the price trend of Sorbic Acid.
Furthermore, owing to worsening economic conditions and geopolitical tensions between Russia-Ukraine, Europe undoubtedly maintains strong market sentiments towards Sorbic Acid. Heighten prices of its downstream end-products also added a reason for Sorbic Acid's price hike in Both countries. Moreover, a continuous labor deficit in response to inflation causes a considerable scarcity of vehicles keeping a halt in the trading momentum. The delayed hours and yard occupancy has inclined due to the queue of cargoes waiting to be loaded and discharged. Furthermore, strict covid norms still imposed in the Chinese market might further affect the trade dynamics with other regions. Overall, the above-stated were some of the factors that strengthened
According to ChemAnalyst, "The cost of Sorbic Acid is likely to decrease in upcoming months, i.e., in December for both the countries. This trend is supported by a decrease in its downstream demand and sufficient stocks with market participants. Besides that, the trading activity is expected to remain on the weaker side, which might keep the market sentiments of Sorbic Acid on the weaker side."