Salicylic Acid Prices to Curtail in the US Market During December
- 15-Dec-2022 5:00 PM
- Journalist: Bob Duffler
According to recent statistics, the price of Salicylic Acid in the US declined dramatically in early December 2022 and is expected to fall more throughout this month. Falling feedstock Phenol costs, weak demand from end-user manufacturing sectors, and trade tensions with China are projected to exacerbate the country's unstable market sentiments. Furthermore, due to lower downstream demand and freight rates, business confidence is projected to remain extremely low throughout December 2022.
Consumer optimism in the US has declined since the outbreak. The possibility of a recession is one factor that continues to affect and maintain the unfavorable market sentiments for Salicylic Acid in the US. Furthermore, the impending holiday season in the US will have a negative impact on consumer demand emotionally, supporting the downward price trajectory of Salicylic Acid. As a result, Salicylic Acid prices frequently fall due to a general downturn in aggregate demand. Backlogs at key ports have also been cleared, benefiting the market's whole supply chain. The December prices for Salicylic Acid recorded 3.9% lower than November 2022.
Some Asian producers have restrained new output to clear their present stockpiles; nevertheless, this has had little impact on the US Salicylic Acid market, as dealers continue to face rising inventories despite poor demand from the end-user cosmetic and pharmaceutical sectors. Furthermore, ocean transportation costs have decreased further, and more shops are stockpiling larger stocks, forcing goods prices to fall further. Moreover, domestic merchants' prior hoarding encouraged traders and suppliers to lower costs to stimulate inquiries and build a healthy downstream.
On the other side, the local economic crisis weighed on demand in the Chinese market along with excess inventories, resulting in low market sentiments for Salicylic Acid. The Chinese currency's recent rapid rise has impeded overseas purchases, with the Yuan's cumulative exchange rate increasing by around 4.42% from early November to mid-December.
According to ChemAnalyst, Salicylic Acid production will rise to meet downstream demand in the upcoming months. Restocking activities in the domestic market will almost certainly benefit the trade activity.