For the Quarter Ending June 2023
North America
Across the North American region, the prices of Benzoic Acid Excipient depict a similar market trajectory throughout the second quarter as that of q1 2023. At the beginning of April, prices of benzoic acid decreased by 2% across the North American region. This trend continued until the mid-second quarter. The fluctuating upstream market of toluene and a steady decrease in domestic inquiries from downstream cosmetic, food, and pharma industries supported the decreasing price trend until May 2023. However, in the course of June, Benzoic acid excipient prices increased significantly across the region, reaching USD 1520/MT CFR Houston. One of the main reasons for the Benzoic Acid price increase in the United States in June 2023 was the change in climatic conditions. Some regions have warmer temperatures, while others have cooler temperatures. Hotter weather in certain regions can speed up the spoilage of foods and other products, leading to an increase in the demand for preservatives like benzoic acid in food, pharmaceutical, and other industries to inhibit the growth of harmful bacteria and fungi, resulting in spoilage of food.
Asia Pacific
The prices of Benzoic Acid excipients across the APAC region began the second quarter on the weaker side as the prices went down, demonstrating a declining price trajectory. The cost of Benzoic Acid excipient decreases slightly on account of weaker international inquiries. Moreover, a significant boost in manufacturing activity throughout the end of the first quarter resulted in higher availability of products with the merchants that balanced the overall request or demands that entered the market. On the other hand, by mid-Q2, the market was still bearish as the upstream toluene market was weakening. Towards the end of Q2, the prices started to recover, and the prices rose by more than 7% with the settlement at USD 1420/MT FOB Shanghai. The heat waves and humidity in the Chinese market led to higher spoilage of food products in the food industry. This increased the consumption of various preservatives in the domestic market, including benzoic acid excipient, which led to a significant price increase and shortage of this excipient among merchants this month. All in all, the second quarter of 2023 concluded with a stable incremented market for benzoic acid.
Europe
With the commencement of the second quarter, the prices of Benzoic Acid excipients dropped across the German market. The pricing chart for benzoic Acid excipient mimicked the trend of the APAC region. Reduction in sales within the domestic market pharmaceutical and food sector attributed to a weaker price trajectory of Benzoic Acids excipient in April. This trend was sustained until the end of May 2023. However, moving towards the end of Q2, the prices of Benzoic Acid demonstrated a significant hike of more than 7 percent and were recorded at USD 1485/MT CFR Hamburg. The appreciation of the Euro against the Chinese renminbi was one factor that supported the positive market momentum in June for Benzoic Acid excipients. As China is one of the major exports of excipients, its depreciation against Euro supported the suppliers and buyers of the germane market as the imported goods from China have become cheaper for German them, owing to which they restocked their inventories for Benzoic Acid at lower prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the price of Benzoic Acid Excipient in the North American region was extremely unstable. Prices demonstrate a decremented trend throughout Q1 2023 because of the weakened end-user demand supported by declined upstream toluene markets in the US. Growing concern for an economic slowdown worldwide has additionally affected the overall market trend for Benzoic Acid Excipients. Furthermore, Russia's anticipated decline in crude output, however, also had an impact on the Benzoic Acid Excipient market. Moreover, towards the termination of the first quarter of 2023, the price stabilized to some extent but at a level that balanced the overall domestic inquiries. With this, the prices of Benzoic acid Excipient were settled at USD 1490/MT in the United States.
Asia
In the first quarter of 2023, the Asia Pacific Benzoic Acid Excipient market continued to remain on the weaker side. Prices decreased in Q1 2023 as a result of low production costs coupled with lower end-user demand and higher inventories among the merchants. Moreover, the market players decide to lower their quotations to destock their existing inventories and replenish their shelves with fresh stocks. Also, upstream Toluene prices and the crude market further witnessed a gloomy market situation. Towards the end of the first quarter, the prices for Benzoic acid Excipient inclined at the same rate it decreased in the month of February and were recorded at USD 1385/MT in China. This was due to improved purchasing activity which was balanced by sufficient stockpiles among the retailers and suppliers.
Europe
During the first quarter of 2023, in the European region, primarily in Germany, the prices of Benzoic acid Excipients followed a downward trajectory. An unexpected downturn in upstream crude oil demand in the European market was one of the major factors that kept the market of Benzoic Acid Excipient in the southward direction. Additionally, there were no disruptions and supplies from exporting nations. The market was also kept afloat by the suppliers' ample inventories. With this, the prices for Benzoic Acid Excipient stabilized in the German market and were established at USD 1450/MT during the end of the first quarter.
For the Quarter Ending December 2022
North America
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.
Asia
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.
Europe
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.
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.
