For the Quarter Ending December 2022
In the fourth quarter of 2022, the Benzoic acid Exp market in North America experienced fluctuations. Prices began to climb in Q4 2022 and continued to do so throughout the second month of the fourth quarter due to high manufacturing costs, numerous logistical issues, and rising inflation. The US inflation Soar to 8.2% in the month of October 2022. Additionally contributing to the price fluctuation were rising transportation costs and port congestion at the major ports. However, Prices begin to decline later in the month of December as a result of weaker inflation (the US inflation rate was 7%, down from 8.2% in October) and decreased end-user sector demand as the holiday season approaches. In December, the Benzoic acid Exp settlement price fell to USD 6392/MT CFR in Los Angeles.
The Benzoic acid Exp market in the fourth quarter of 2022 in Asia Pacific was very volatile. Price increases were observed up until the first month of the quarter as a result of increased end-user sector demand, various logistical difficulties, and rising inflation. Both the 2.8% increase in China's consumer price index and the 0.9% increase in the Producer Price Index (PPI) had an effect on the market. Investor confidence and the country's economic operations have both been significantly impacted by China's "Zero-Covid" policy to date. Due to growing production costs driven by rising energy prices as well as increased domestic production to meet demand from both domestic and international markets, the market remained competitive. Later in November, as domestic merchants had sufficient stock on hand, Benzoic acid Exp prices did begin to decline. Also, the feedstock toluene and sodium benzoate prices were recorded to decline to keep the market feeble. The market's ongoing decline was also influenced by the policies being relaxed and the weak downstream demand. In December, the settlement price for Benzoic acid Exp. fell to USD 2050/MT FOB Shanghai.
Prices for Benzoic acid Exp in the fourth quarter of 2022 demonstrated turmoil across the European continent. In the first months of Q4 2022, supply disruption and persistent port congestion in the European region led to price increases. Additionally, in October 2022, the annual inflation rate in Europe increased to 10.6% from 9.9% in September. Due to the impending Christmas season, retailers in Europe have decided to restock their inventories substantially. However, prices decreased dramatically in the month of November and December on the back of a fall in inflation (The euro area annual inflation rate was 10.1%, down from 10.6% in October), relief from port congestion, a slight increase in existing inventories among the merchants, and a considerable decrease in the freight charges keeping the market at ease. The market remained weak as a result of falling feedstock toluene and sodium benzoate price. The cost of Benzoic acid Exp was USD 6460/MT CFR Hamburg toward the end of Q4 2022.
For the Quarter Ending September 2022
At the commencement of the third quarter of 2022, Benzoic acid Excipient prices showcased an oscillating trajectory due to the wobbling demand from downstream industries, such as food preservatives and pharmaceutical industries. At the onset of Q3 2022, the prices of Benzoic acid Excipient increased considerably following increased raw material Toluene prices and surging freight charges in the US market. Later in the second half of Q3 2022, the price started to drop gradually owing to stable market demand and enough inventories in the domestic market. Towards the end of Q3 2022, the prices were recorded to be USD 2190/MT CFR Houston with an average quarterly inclination of 2.18%.
In the third Quarter of 2022, Benzoic acid Excipient prices showcased an oscillating trajectory due to variable prices throughout the quarter. At the onset of the first half of Q3 2022, the Benzoic acid Excipient prices continued to rise radically owing to escalating demand in the Asia Pacific region. Another reason for this significant surge in the price was the increased feedstock Toluene and Sodium benzoate values. Also, increased energy costs affected the Benzoic acid Excipient prices in the regional sector. By the end of Q3 2022, the Benzoic acid Excipient experienced a sudden drop in cost due to decreasing raw material prices and lowering demand from the food and pharmaceutical sector. Towards the end of Q3 2022, the prices were recorded to be USD 2020/MT FOB Shanghai with an average quarterly inclination of 1.73%.
At the beginning of the third quarter of 2022, Benzoic acid Excipient prices experienced a fluctuating trend in the European market because of uprising demand from the regional sector. At the beginning of the first half of Q3 2022, the price fluctuated towards the upper end, owing to steady demand, and increased raw material Toluene prices. The price decreased in the middle of Q3 with lower demand and enough existing inventories. At the end of Q3 2022, the values accessed at USD 2420/MT with a quarterly inclination of 0.61%. The energy crisis and rising energy costs kept the Benzoic acid Excipient market sentiments to be strong.