Global Benzaldehyde Market Dropping on Quivering Downstream Demand
- 06-Jul-2022 4:26 PM
- Journalist: Henry Locke
The price of Benzaldehyde has witnessed a downward trajectory in the global market during the first week of July. According to ChemAnalyst, data shows that Benzaldehyde prices have plunged by around 1.5% during the preceding week across the Chinese market due to shaky demand fundamentals amidst stockpiled inventories in the domestic market. In addition, China has already battled Covid-19 lockdowns, high inflationary pressure, disrupted supply chains, weakening consumer demand, and extreme weather conditions, which further influenced the Benzaldehyde value across the domestic market. In addition, soft raw material Toluene and Chlorine costs in the domestic market have the other facets for the low Benzaldehyde prices. However, in the Indian market, prices of Benzaldehyde hiked by 1.3% in the first week of July, backed by insufficient supplies coupled with rising demand in the construction sector.
At the same time, Benzaldehyde's price has recently slipped by nearly 1.2 percent after observing a continuous hike since the previous month in the German market, owing to the lackluster demand amidst summer seasons. Since a recession has threatened Europe, traders have become increasingly concerned about the pricing dynamics of raw materials. As a result, some of Germany's significant traders began offering discounts on bulk purchases to downstream manufacturers.
Furthermore, the United States faced similar market scenarios due to gloomy demand from the downstream construction sector, which supported the Benzaldehyde prices to follow a downward trend across the domestic market. On the other hand, high Inflationary pressure has been a source of concern; as a result, most buyers retreated to the side-line for a wait-and-see attitude and only bought on a need-to basis. As a ripple effect, prices of Benzaldehyde dropped by approximately 1.2% on 1st July.
According to ChemAnalyst estimation, "in the Chinese market, Benzaldehyde prices will be expected to keep tracing a downward trajectory owing to the soft raw material Toluene and Chlorine cost in the coming weeks. However, the Indian market may fluctuate with fluctuating supply and demand fundamentals. At the same time, the European and the USA market may start the effect of inflation, which may not allow the demand to rebound across the region which may impact the prices of Benzaldehyde across the region."