Global Sodium Benzoate Exp Price Decline Continues Through May 2025 Amid Oversupply
- 21-May-2025 5:45 PM
- Journalist: Yage Kwon
Industry observers cite a further decline in sodium benzoate exp. prices globally during May 2025, as a follow-up to a sustained downtrend that began last quarter. A further decline in sodium benzoate exp. prices is predominantly driven by a number of market fundamentals, such as weakened demand from end-use applications such as food and beverage preservation, personal care, and pharmaceuticals. Aggravating the situation, higher inventory levels are increasing storage fees, thereby skewing overall trade trends.
On the supply side, reports from the market show that an obvious situation of oversupply is driving the sodium benzoate exp. prices down. Most major production hubs, particularly in China, India, and Southeast Asia, have reported higher-than-expected stocks.
Producers in these regions, therefore, have been producing at lower-than-normal capacity use levels in the last few months. This deliberate slowdown is meant to hasten existing stock depletion ahead of preparing for new production cycles. Still, the excess already produced continues to place major downward pressure on sodium benzoate exp. Values.
From the demand side, downstream customers in the international market have remained conservative since late March 2025. Most are buying purely on an as-needed basis, following a wait-and-watch policy under the belief that prices would still fall further. In the sectoral context, the food and beverage sector—historically the biggest user of sodium benzoate exp. Material has been especially cautious, confining purchases to short-term requirements owing to already high inventory levels.
In North America, sodium benzoate is. Prices have dropped by more than 5% since April 2025. Bulk orders are now being completed at levels well below Q1 contract prices. The same trend is seen in Europe too, with sodium benzoate exp. Prices falling by 5–6%, varying with volume and purity. Frustrating matters further, the tariff regime of the U.S. has also impacted market outcomes. The 15% import tariff levied in late 2024 on chemical imports, including sodium benzoate exp. Goods, from some Asian countries like China, at first provided a competitive advantage to domestic as well as substitute foreign suppliers. As a result, many suppliers are absorbing the tariff costs and passing on the savings to end consumers. Additionally, a new regional trade pattern has emerged, with U.S. buyers increasingly sourcing sodium benzoate exp. Materials from low-tariff or preferential nations.
In the global sodium benzoate exp. market, Asian suppliers—particularly China and India—have witnessed even sharper price declines. Sodium benzoate exp. Prices in these markets dropped 5–7% in April 2025, giving favorable opportunities for international buyers seeking cost-effective sourcing.
Moreover, the high stimulus for the global reduction in sodium benzoate exp. prices the falling in the prices of key feedstocks such as benzoic acid and toluene. The global petrochemical sector has witnessed increased supply levels of these key raw materials, and through cost advantage, these are being transferred downstream in an attempt to stimulate demand. Market analysts forecast the dominant downtrend in sodium benzoate exp. prices to persist throughout Q2 2025. However, stabilization may begin early in Q3, in line with a seasonal rise in beverage production that typically increases demand for preservatives like sodium benzoate exp.