Global Potassium Sorbate Prices Drop in Line With Weakening Market Fundamentals
- 23-Sep-2022 2:49 PM
- Journalist: Timothy Greene
The global Potassium Sorbate prices have been plunging with entering September 2022 due to unfavorable market sentiments. Also, declining feedstock Sorbic Acid prices support the price drop of Potassium Sorbate. Moreover, the plant shutdown in certain countries has impacted Potassium Sorbate prices.
In APAC, Potassium Sorbate prices follow the plunging trend of feedstock Sorbic Acid. The manufacturing rates are moderate as the demand for Potassium Sorbate has softened in the Asian markets. Also, In China, a major Sorbic Acid producer shut down its facility for maintenance in mid-September 2022. Despite this, the shutdown has not caused severe supply chain disruption because the consumer demand was weak. The Asian countries have enough inventory on hand, coupled with weak buying sentiments. As a result, the purchasers preferred to buy goods on a spot price basis over the contractual prices.
The European Potassium Sorbate market is dampening due to the low import cost from the Asian countries. Although, the freight charges from Asia to Europe are declining as port congestion eases. Even though the energy crisis has been rising and production costs have been high, the operating rates were low as consumer demand and purchasing activities were soft.
In addition, the requirements from the end-users pharmaceutical and food sector have been low in the USA, further pulling down the Potassium Sorbate prices. The downstream derivatives such as Polypropylene Glycol follow a downtrend in the USA domestic market, which has reduced demand for Potassium Sorbate. Additionally, the reducing price of natural gas and the abundant supply of the feedstock Sorbic Acid both contributed to the decrease in the price of Potassium Sorbate.
According to ChemAnalyst, the Potassium Sorbate market will likely be weak in the coming weeks due to the consistent drop in demand for the product. If China’s Sorbic Acid plant resumes its production, the supply of feedstock Sorbic Acid might be smooth, which could impact the Potassium Sorbate prices. Moreover, the demand for Potassium Sorbate and its derivatives might remain weak in Europe and USA.