US Sorbic Acid Prices Experience Constant Decline in June Amid Weak Demand
US Sorbic Acid Prices Experience Constant Decline in June Amid Weak Demand

US Sorbic Acid Prices Experience Constant Decline in June Amid Weak Demand

  • 19-Jul-2023 5:05 PM
  • Journalist: Timothy Greene

Within the North American region, primarily in the United States, the prices of Sorbic Acid dropped by around 5 percent in June, and it is projected that the prices will likely remain on the south side. Overall, the market for Sorbic Acid continued to remain bearish since the beginning of 2023; on average, the prices went down until June by more than 9 percent. Certain factors supported this persistent dip in the prices of Sorbic Acid, including lower domestic and international market quotations, ample supplies, and decreased trade activity.

In the month of July, as per the market analyst, it is anticipated that the prices for Sorbic Acid would continue to decline, leading to consistently higher inventories among the merchants fearing their profit losses. One of the primary factors that kept the prices of Sorbic Acid on the south side includes climatic changes across the international market. China being one of the major exporters of excipient, heat waves across the Chinese market are expected to affect the exporting activity as hotter weather owing to which the trading activity was disrupted.

However, across the international market, primarily in the United States, the demand for preservatives has been relatively stable until June, while the supply has relatively increased owing to higher inventories in the warehouse. In June, producers relatively decreased their cost of producing preservatives as upstream ethylene and carbon monoxide used in Sorbic Acid manufacturing reduced significantly. Apart from that, another factor that supported the downward pricing sentiments for Sorbic Acid includes the entering of more pharmaceutical companies within the region as the preservative market is becoming increasingly competitive, as more companies are entering the market and offering lower-priced products, further putting downward pressure on the prices of Sorbic Acid.

However, after witnessing a consistently weaker market trend, experts stated that there is a possibility that prices could decrease further if the supply of preservatives continues to increase in the domestic market and demand for these products continues to decline.

ChemAnalyst anticipates that Sorbic Acid prices will likely show a downward trend in the coming months of 2023. Demand from the pharmaceutical and food, cosmetics, and personal care sectors anticipates a uniform weakening trend, and market players will have more than enough stocks with them to meet the overall inquiries. Moreover, climatic changes, including hotter weather, might surge domestic demand for Sorbic Acid in upcoming months owing to its application of preservatives in the cosmetic, personal care, and food sector."

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