Global Salicylic Acid Prices Likely to Remain Uplift Throughout Q1 2023
- 15-Mar-2023 6:59 PM
- Journalist: Francis Stokes
Since the commencement of Q1 2023, the price of Salicylic Acid has been rising all over the world, and it is predicted that it will rise further throughout the first quarter of 2023 due to the increase in buyer's appetite from the pharmaceutical end-user sectors. Toluene and Benzoic Acid, the two feedstock materials, have experienced price increases that are also significantly supporting the upward trajectory for Salicylic Acid. Moreover, according to experts, the continuous inclination is caused by increased solvent prices brought on by rising petroleum costs and fluctuating freight costs.
The present collapse of China's zero-Covid policy and the impending mild recession are the primary factors supporting the current market trend of Salicylic Acid. The number of inquiries from both the domestic and international markets has increased, influencing the market situation for Salicylic Acid. In the Chinese provinces, the port inventory was not under a lot of pressure, and the holders to sell goods at a fair margin also supported the price trend. The market's center of gravity was dragged higher because the offer's overall price was high. The domestic market price was driven by a robust and increasing phenol market and enhanced export expectations.
Similarly, throughout the first half of Q1-2023, other countries, primarily those in Europe and the USA, also followed a comparable term for Salicylic Acid. The upward price trend was assisted by rising manufacturing costs, input costs from upstream industries, and inquiries. Furthermore, increased Feedstock Toluene and Benzoic Acid prices across the globe further influenced the Salicylic Acid market. Increased freight charges are also likely to keep the market sentiments robust. The cost of corporate debt is increasing due to rising interest rates, raising the price of labor, goods, and energy across the country.
According to ChemAnalyst, Salicylic Acid costs are expected to increase in the coming months on the strength of new manufacturing activities and fresh supplies to meet demand from the end-user sector. Worldwide prices for Salicylic Acid are projected to increase due to escalating raw material Toluene and Benzoic Acid costs.