Global Salicylic Acid Prices Likely to Increase Due to Rising Demand
- 20-Jan-2023 3:41 PM
- Journalist: Jacob Kutchner
The cost of Salicylic Acid is anticipated to rise gradually throughout the first quarter of 2023 across the globe. Rising energy and production costs have significantly improved Salicylic Acid market sentiments worldwide. Prices for Salicylic Acid are anticipated to rise over the coming week and eventually months due to persistent demand and a supply constraint in the major producing countries, mainly China, due to the resurgence of the pandemic scenario.
The rise of COVID-19 instances in the Chinese provinces caused market disruptions in the fourth quarter of 2022, which also impacted the product market situation during January 2023. Authorities were nonetheless apprehensive about the future of business due to the serious risks posed by China's rapid U-turn away from the "zero COVID" policy. This exacerbated a national downturn in manufacturing activity. As a result, domestic suppliers were compelled to increase their prices for Salicylic Acid in domestic and international markets to maintain their profit margins. Additionally, the trade proved successful by the end of 2022, making the market more upbeat in the months to come. It is also projected that some of China's pharmaceutical production may be shifted to domestic use in early 2023. The COVID-19 outbreaks in China have also slowed down deliveries and shipping. As merchants chose to restock their shelves, there has also been a little increase in demand for Salicylic Acid. However, other terminals preferred to take a wait-and-see attitude in light of unstable factors, including the availability of end-user items among market players.
In the European and US markets, the prices for Salicylic Acid are predicted to rise parallelly with the Chinese market. Russia's aggressive and unlawful action against Ukraine has also raised questions about the EU's security of energy supplies, further influencing the energy price and the market situation. Moreover, the rising Salicylic Acid demand and fresh production activities might further affect the pricing trend in the first quarter of 2023. Increasing feedstock Phenol prices in the US region additionally influenced the market situation for Salicylic Acid in the US.
According to ChemAnalyst, the prices of Salicylic Acid in this quarter are likely to rise on the back of rising demand. In addition to the Chinese market, prices are predicted to increase in Germany and the United States.