Will Indian Benzoic Acid Market Replicate the Chinese Market?
- 11-May-2022 7:11 PM
- Journalist: age Kwon
New Delhi, India: Recently, the Chinese market sentiments have become more evident after showcasing tangled pricing trends for weeks. As covid-19 situations are gradually improving, the holiday season is finally over, and the crude oil prices are dropping, the market trends of different products are slowly taking their shapes. It has become easier to get an insight into the market scenarios in China now as clouds of uncertainties have cleared.
As per many sources, the entire market of food additives in China is likely to become flat as the month of May proceeds because, after a long time, some normalcy is expected in the country. Furthermore, it is anticipated that the consistent supply rate would adequately meet the firm downstream demand for food additives. The same is expected for the Benzoic Acid market as well.
Benzoic Acid is currently falling in China owing to the decline in the prices of feedstock Toluene. Toluene prices are dropping due to the sudden deflation of crude oil.
Since China is the largest Exporter of Benzoic Acid to India, the queries around India's upcoming Benzoic Acid pricing trend have become the focal point. To get a distinctive insight into the whole situation, ChemAnalyst experts talked with several manufacturers and traders.
A manufacturer from Mumbai quoted, "The Benzoic Acid prices would escalate in the Indian market owing to the higher freight charges, even if the prices of both Benzoic Acid and feedstock Toluene remain declining in China."
After talking to many such manufacturers, ChemAnalyst has concluded that the reducing pricing trend of Toluene followed by decreasing Benzoic Acid prices would only be restricted to the Chinese domestic market. Congested ports that eventually lead to inaccessibility to the freights will hold the Benzoic Acid prices on the higher side in India.
So, the answer is NO; Indian Benzoic Acid would not replicate the Chinese market in accordance with rising freight charges on the ports.
However, it would be interesting to witness how the market sentiments turn in the forthcoming days. Stay with us to get further updates on the Benzoic Acid market.