For the Quarter Ending March 2022
North America
In North America, the prices of Benzoic Acid surged in the domestic market during the first quarter of 2022, backed by strong downstream demand and high upstream cost. The demand from downstream industries such as the food, beverages, and pharmaceutical sectors was firm. Besides, the prices of upstream toluene were inclining, which further propelled the Benzoic Acid prices in the upward direction. Furthermore, skyrocketed crude oil prices and logistic charges added to the already augmenting price value of Benzoic acid. In addition, the continued labor shortage and port congestions fuelled the prices of Benzoic Acid as well. The evaluated prices of Benzoic Acid landed at USD 4200/MT CFR Illinois in March.
Asia Pacific
The Asia-Pacific region witnessed an upward trajectory in the prices of Benzoic Acid during Q1 of 2022. The increased downstream demand for sodium benzoate to act as a food additive is the prime reason for escalating Benzoic Acid prices in the domestic market, as Benzoic acid is the upstream for Sodium Benzoate. Furthermore, the price rise of feedstock toluene is another factor causing a surge in Benzoic Acid prices. Moreover, inclining crude oil prices and freight charges further fuelled the prices of Benzoic Acid. In India, the assessed prices of Benzoic Acid were USD 1861.43/MT at Ex-Mumbai during March, after the consistent rise throughout the quarter.
Europe
In Europe, the pricing trend of Benzoic Acid was inclining in the first quarter of 2022 by nearly USD 150/MT, on the back of strong demand from end-user industries and growing feedstock prices. As the costs of Toluene (Feedstock) increased throughout the quarter, so prices of Benzoic Acid also rose. The need for Sodium Benzoate from F&B industries further propelled the prices of Benzoic Acid upward. Besides, the continued rise in freight charges and the escalating crude oil prices amidst Russia-Ukraine war tensions pushed the Benzoic Acid prices upward. Shipping restrictions on several essential ports and shortage of Shipment containers were other few reasons that contributed to the price hike of Benzoic Acid.
For the Quarter Ending December 2021
North America
In North America, the prices of Benzoic Acid declined in the US domestic market during the fourth quarter of 2021. The US is typically a net importer of upstream Benzene. However, it also exports Benzene to several countries, including China and Europe, which fell by almost 83% from October to November due to prolonged supply length due, which supported the downward trajectory of the price trend of Benzoic Acid in the country. Benzoic Acid prices decreased from USD 4762/MT to USD 4326/MT CFR Texas from October to December. In terms of demand, Offtakes from the downstream pharmaceutical and Food & Beverage industries remained strong throughout the quarter.
Asia
During the fourth quarter of 2021, the pricing trend of Benzoic Acid demonstrated an upward trajectory across the Asia Pacific region. In the Chinese domestic market, the prices of Benzoic acid witnessed a significant rise and escalated from USD 1390/mt to USD 1675/mt FOB Qingdao from October to November. The skyrocketing feedstock and energy cost, container shortages, ramped-up imports, high freight charges, and labor shortages are some of the factors that have supported the price trend in the country. In India, Ex-Mumbai Pharma grade Benzoic acid prices increased from USD 1680.27/mt to USD 1754.7/mt during the 4th quarter, following the same market trend as China. The demand for Benzoic Acid from the downstream sectors remained firm throughout Q4.
Europe
The European Benzoic Acid market mirrored the pricing trend of the US in the 4th quarter of 2021. The consumption volumes from downstream pharma and food and beverage industries remained elevated throughout Q4. The exorbitant freight charges and prolonged port congestion continued to hamper the market sentiments of Benzoic Acid in the region. This market disruption was further supported by the supply constraints, including container shortages, labor shortages, continued on and off COVID-19 restrictions across port regions, and congestion at ports.
For the Quarter Ending September 2021
North America
In North America, Benzoic Acid Market witnessed an exponential surge during the third quarter. Due to the drift in the values of upstream Benzene, and the strong demand from the downstream sectors including Pharmaceuticals and Food & Beverages, prices of Benzoic acid streamed high during the timeframe. In addition, many manufacturers were compelled to shut down their production units ahead of the hurricane Ida as a contingency plan which directly influenced the pricing trend of Benzoic Acid. Moreover, US is among the major exporters of Benzoic Acid hence, supply chain disruption caused by hurricane also send ripples to the global prices of Benzoic Acid.
Asia
At the beginning of Q3 2021, Asian market encountered a relaxation in the prices of Benzoic Acid after witnessing a significant hike during the second quarter. However, later a rush in the value of Benzoic Acid was observed in Asian market owing to the various factors. In China, many chemical industries were impelled to curtail their production rates due to the power deficit condition which consequently led to the hike in the prices of Benzoic Acid and the other materials sourced from China. Moreover, shutdown of Ningbo port and the congestion on several ports in China further contributed to the upward trajectory in the prices of Benzoic Acid during the third quarter. In India, Benzoic Acid market remained elevated throughout the quarter owing to the exorbitant freight charges because of container shortage and sturdy demand from the downstream industries. Ex-Mumbai Benzoic Acid monthly average price stood at USD 1594.13/MT in September witnessed a hike of USD 133.84/MT since July.
Europe
In Europe, Benzoic Acid prices encountered a marginal hike due to the constrained availability and a firm demand from the pharmaceutical sector during the third quarter. In addition, an extreme shortage of containers and extended shipping time also led to the lower import supplies throughout the quarter, which consequently aided the inflation in the prices of Benzoic Acid in the European market. Moreover, the arrival of Ida hurricane in US coupled with a surge in the upstream rates also influenced the value of Benzoic Acid and its derivatives in Q3.
For Quarter Ending June 2021
North America
Owing to the strong push from domestic Benzene market, as major manufacturers had to increase their product prices to maintain their margin, prices of Benzoic Acid rose effectively during this quarter. On the demand perspective, demand for Benzoic Acid remained firm throughout the quarter from the domestic as well as from the international market, supported by sturdy offtakes from pharma and food additive segment. In addition, in effect of firm demand and tight supply, Eastman did consecutive positive revisions in Benzoic Acid prices, one was of USD 220/MT for all grades during May and other was of USD 110/MT for technical grade during June, which were applicable to North America and Latin America regions.
Asia
After reaching unprecedented highs during the previous quarter, prices of Benzoic Acid started relaxing moving into April. In China, prices of Benzoic Acid drifted during the month of April and later braced stability for other two months. Benzoic Acid being a majorly imported commodity in India, the decline in prices also impacted the price trend in the domestic market. Amid the second wave of pandemic in India, demand for Benzoic Acid remained lower than the pre-pandemic level. Thus, the prices declined eventually during the month of May and later improved with reduction in new pandemic cases in the country. Therefore, by the end of the quarter, price of Benzoic Acid hovered around USD 1446/MT and USD 1113/MT for India and China, respectively.
Europe
European Benzoic Acid prices maintained stability throughout the quarter, where the demand remained modest to low during this timeframe. Despite of a steep rise in upstream Benzene prices, Benzoic Acid prices fluctuated in a narrow range, owing to the stable to dull demand from downstream preservative segment. Meanwhile, pharma sector remained firm in the meantime, which counterbalanced the overall demand scenario of Europe.
For the Quarter Ending March 2021
North America
Regardless of disruptions in production activities from the winter storms, when most of the raw materials and chemical prices were going higher every week, prices of Benzoic Acid maintained stability throughout the quarter and experienced a marginal rise till March. Demand from the downstream personal care and pharmaceuticals sector remained low to moderate across the region, hence the prices witnessed a marginal rise of 1.26% to settle around USD 1284 per MT till March.
Asia
The Asian market encountered a substantial rise in the overall demand for Benzoic Acid during Q1 2021. China suffered a huge price rise due to low inventory levels after the Chinese lunar holidays and shortage of raw materials prevailing during the quarter, which prompted prices to seek an aggressive uptrend. The prices of Benzoic Acid in China rose by more than 32% and settled around USD 1217 per MT amidst high domestic demand and low product availability. Meanwhile in the Indian markets, tight supply amidst strong demand and high import cost due to record high container and freight rates forced the prices to rise effectively by 3.28% between January to March.
Europe
Europe had a fair demand for Benzoic acid from the domestic food and pharma sector, and the supply remained firm. Hence the prices showed stability throughout the quarter across the region. In addition, a renowned speciality chemical manufacturer, Lanxess announced acquisition of Emarald Kalama, which is a world’s largest Benzoic Acid manufacturer for USD 1.08 billion, that may improve the supply the chain of Benzoic Acid across the region.
For the Quarter Ending December 2020
Asia
The Benzoic Acid demand in Asia was assessed to be firm during the fourth quarter due to resumption of downstream production units with operating rates at pre-pandemic levels across countries like India and China. In order to make up for the loss incurred in H1 2020 many leading producers such as Eastman Chemical Company, having its Benzoic Acid production unit in Wuhan had shut its plant due to lockdown. The plant reported robust operations in Q4 2020 to meet the increasing product demand in the country. Demand levels rose across the Asian markets backed by increased consumption from the pharmaceutical sector as an active ingredient to develop antibacterial/antifungal ointments and tablets. Due to gradually increasing demand for Benzoic Acid in the region the prices remained strong during the fourth quarter which remained supplemented by hike in the prices of feedstock, toluene due to weaker supply in first half of the quarter. The Benzoic Acid prices across remained rangebound around USD 1420 per MT during 4th quarter.
North America
Consistent supply of feed Toluene was reported after the toluene disproportionation (TDP) units resumed operations at optimum capacities. The Benzoic Acid prices jumped in mid-November following high upstream rates and increasing demand for the technical grade material. Towards the end of the quarter, market supply remained tight due to boosted sentiments ahead of improved production rates at the downstream pharmaceutical companies.
Europe
The smooth growth curve in the Benzoic Acid demand was observed during the 4th quarter of 2020 across the European markets. However, rise in total Benzoic Acid exports during November from the western Europe was observed backed by surging demand from the Asian countries including China. With the approach of year-end holidays, offtakes remained impacted towards the end of the quarter. Also, swelling overall demand for food grade material was noted in November-December period.
