Sodium Benzoate Prices in the US Likely to Gain Momentum

USA: The second week of February 2023 is expected to increase Sodium Benzoate prices in the US domestic market. The consistently surging demand for Sodium Benzoate in the Food & Beverage industries is the key reason driving its market in the US. Ahead of the Lunar New Year's celebrations, Sodium Benzoate manufacturers reduced or even stopped their operations in China, negatively impacting the US Sodium Benzoate market. After the resumption of the export market, the increased rates due to capacity constraints, lengthier wait periods, or a shortage of container availability led to an increase in the price of the product. Increasing costs for importers and exporters, including delay and detention, as well as a lack of workers, causes delivery delays and reduced customer service available in the Chinese trading market.

Rising expenses of the main ingredient, Benzoic acid, and other factors, including high demand and low supplies, promote the upward price trend of Sodium Benzoate in the US. Additionally, the domestic Chinese market for benzoic acid, which is made through the partial oxidation of toluene with oxygen process, was shut down this week owing to the 2-week long holiday. Before the market closed, there was a tight supply of Sodium Benzoate, which further reduced exports to the US and resulted in a low stockpile domestically due to a shutdown in production for the festive season. In terms of crude oil, the market is clouded by unfavorable sentiment and concerns about an impending economic downturn weighing down the crude oil market, and since December 2022, crude oil prices have been under pressure due to expectations that the Fed (Federal Fund Rates) would raise interest rates. The prices are currently high and are expected to grow because the US imports most of its commodities from China.

ChemAnalyst predicts that the continued rise in feed values will increase the price of Sodium Benzoate in the upcoming months. Moreover, for operations to resume at normal levels, around one to two weeks are needed after the holidays in the Chinese domestic market.