Polysorbate Prices Dip Along With Upstream Costs in the Indian Market

The Indian market witnessed a fluctuating price dynamic for Polysorbate in the first three months of 2023 and continues to flow the same in the upcoming quarter. The major factor governing the overall price momentum of Polysorbate in the Indian market is the production cost, impacted by the declining feedstock (Sorbitol And Fatty Acids) prices. Sorbitol and Fatty acids are major components required to produce Polysorbate 80, and any form of major or minor variations in the prices of these raw materials significantly impact the overall prices of the product. Price quotations for Polysorbate towards the end of the fourth month of 2023 were observed at USD 1896/MT, Ex-Mumbai.

Polysorbate is a surfactant created by combining Polyol, Sorbitol, Ethylene Oxide, and Fatty Acids. The number of moles of Ethylene Oxide activated per mole of Sorbitol determines Polysorbate classification and naming. It is produced after further reaction with any Fatty Acid taken from vegetable oil (Palmitic, Stearic, and Oleic Acid). Other factors governing the overall market dynamics of Polysorbate are the cost of the product on the Indian shores along with the demand outlook in the domestic market. Polysorbate 80 has major applications in frozen food, pharmaceutical, and cosmetics owing to its emulsifying properties.

The Indian edible oil suppliers and buyers have witnessed a decline in vegetable oil prices in the country and agreed to lower commodity prices. Following the international market easing, the Indian government requested in a formal conference with key oil industry representatives that they lower the price of edible oil in the domestic market. Oversupply of the product amidst the slow demand from pharmaceutical (vaccine production) has pressured the giant players and suppliers to reduce the overall prices in the Indian market. As per ChemAnalyst, the Polysorbate price may continue to follow the declining trend in the upcoming quarter on account of retarding prices of the raw materials abetted by the weak demand outlook of the product in the Indian market.