Global Sorbic Acid Price to Reduce Again in December Amidst Higher Inventories

The global market for Sorbic Acid displayed a deteriorating market attitude, which would continue all the way to the very end of the year 2022. Downstream demand reduced in December as the buying activities remained on the weaker side compared to the previous month. As the inquiries from various end-user sectors also remained on the lower end, this propelled the market players to sell their orders at a lower price. Overall, a continuous bearish market fundamentally overlooked the price trends of Sorbic Acid in both countries, such as Germany and The U.S.

In December, Sorbic Acid prices in Germany fell by around 2.09 percent from November due to fewer domestic market offers and weak trading activity. However, the normalization of freight rates due to the ease of supply chain stress suggests that profits might be lower than the current trend. Also, given the current economic difficulties, the end-user industry's demand for food preservatives products such as Sorbic Acid may be sluggish for a while. Moreover, the occurrence of a severe recession and a protracted period of Chinese protests amid of lockdown situation significantly reinforced the reduced-price trends of Sorbic Acid in Germany.

According to the National Weather Service, "Over the course of the week, a wave of Arctic air on the side of a cold front is likely to bring dangerous wind chills across the central U.S along with a flash freeze from the mid-South to the Eastern Central Coast." This might affect U.S. imports and the prices of all the commodities, including Sorbic Acid, in December. Besides that, the start of the Newyear holiday may also impact the overall market for Pharmaceutical APIs and Excipients, including Sorbic Acid. This is because inventories had started to stockpile substantially. Therefore, as mentioned, the cost of Sorbic Acid has fallen by about 0.98 percent from November to till date.

According to the ChemAnalyst analysis, Sorbic Acid prices will rise as of the start of the New year, i.e., 2023. The downstream demand might improve on a positive note with enough inventories among the market players that can meet an immediate order.