Will the dawn of the third quarter resurge Sodium Benzoate Market
- 23-May-2022 4:26 PM
- Journalist: S. Jayavikraman
Mumbai, India: The prices of Sodium Benzoate have been rising in the Indian market. However, the talks about a sudden drop in Sodium Benzoate prices in June have been swirling around for the last few days. The value of Sodium Benzoate has been growing this month owing to the strong downstream demand and escalating Benzoic Acid prices. The market is expecting a decline in the prices of Sodium Benzoate in June as destocking of available inventories takes place. In June, the manufacturers would focus more on clearing out their stock in fear of spoilage as soon as the monsoon arrives; hence they would not mind selling it at a lesser value.
On the contrary, the Sodium benzoate prices are expected to resurge in July. But, the concern regarding the reason behind this surge has been revolving, To settle down those queries, ChemAnalyst researchers spoke with various Sodium Benzoate manufacturers and traders. A manufacturer quoted, “The freight charges will increase in July, following which Asian countries will cut down their trade frequency, consequently causing price increments.”
After talking to several such manufacturers, ChemAnalyst comprehended that the expected soar in freight charges, followed by a reduction in the frequency of freights, would eventually constraint the supply rate amidst a lack of stocks or lower level of inventories. Hence, the price value of different commodities, including Sodium Benzoate, would propel in the Asian countries.
Furthermore, the elevating downstream demand from the food processing and cosmetics industry would contribute to the price hike of Sodium Benzoate in the Indian domestic market. In addition, the growing prices of feedstock Benzoic Acid would add to the already augmented price values of Sodium Benzoate in the regional market.
According to ChemAnalyst, “The anticipations about the price drop of Sodium Benzoate in June and price surge in July seem true and are backed by proper justifications.”