The Sorbic Acid Market of the USA and Germany Demonstrates Lackluster Sentiments
- 23-Sep-2022 3:46 PM
- Journalist: Bob Duffler
Sorbic Acid prices have shown a declining tendency in the USA and Germany, backed by weaker downstream demand from end-user sectors, which led to a build-up of large stocks with local merchants. The recent trend of increasing inflation rates and energy costs in European countries were other factors that contributed to the worst pricing development of Sorbic Acid.
An excess supply and lower end-user queries from the pharmaceutical industries reduced Sorbic Acid prices in Germany by 1.89 percent. Due to the weakening demand side, the trades had to change their quotations to the lower side to stop further stockpiling. Another significant issue of worry has been the rising cost of energy which has led to the price hike of all the commodities, due to which the interest of customers faded.
The United States also witnessed a similar market sentiment as Europe. Lower transportation and higher production expenses from exporting nations have impacted Sorbic Acid prices in the North American region. Prices for sorbic acid were found to be down by -1.27%. Several other factors in China, such as declining production momentum, labor shortage, and imposition of Zero-covid policies, shipments decreased dramatically, supporting the downward trend of sorbic acid prices in the US. Moreover, decreased customer requirements led to piled up of inventories with the domestic merchants. Because of this, suppliers worried and reduced their prices to a lower extent to maintain their profit margins and destock the stocks. However, these are some of the collective factors that supported the price propensity of Sorbic Acid in the United States and Germany, respectively.
According to the ChemAnalyst estimation, “Sorbic Acid prices are likely to follow the downward trend in the USA and German market, as the demand is anticipated to remain poor. Additionally, the suppliers may have enough inventory supply to meet the needs. Meanwhile, trading activity is probably likely to remain sluggish”.