For the Quarter Ending June 2021
Potassium Benzoate market in North America witnessed sturdy offtakes during this quarter, taking support from the seasonal rise in demand from the downstream end users. During Q2 2021, prices of Potassium Benzoate rose consistently, as the demand from the beverages surged. The hike in prices gained further momentum from the shortage of feedstock Benzoic Acid in USA. Moreover, feed additives segment also bolstered the prices of preservatives. Therefore, week over week, marginal rise was observed in Potassium Benzoate prices during this quarter in USA.
Potassium Benzoate demand-maintained stability throughout the quarter across APAC region, backed by stable offtakes from end users. In China, recovery in economic activities led to a price hike in various commodities. Meanwhile in India, despite of resurgence in pandemic cases in the country, Potassium Benzoate prices kept tracing upward trajectory throughout the quarter. The demand rose effectively due to seasonal surge in preservatives sector especially from the beverage segment post arrival of summer season in the country. In addition, consistent offtakes from the feed additives sector also bolstered this price hike. Thus, prices eventually reached USD 4057/MT in India during June.
European market sustained sturdiness in demand for Potassium Benzoate during this timeframe. The demand from the downstream preservative segment remained firm, especially from the feed additive segment of Europe, which supported the overall upward price trajectory of Potassium Benzoate across the region. In addition, rise in feedstock Benzoic Acid prices also supported this upward price trend. However, uncertainties due to Covid pandemic also accelerated the demand for Potassium Benzoate, as manufacturers aimed to increase their product shelf life.
For the Quarter Ending March 2021
The demand for Potassium Benzoate demonstrated strong fundamentals across North America, during Q1 2021. US food preservative sector were running high bolstered by climate calamity across the gulf coast. However, several plant outages across the US gulf affected the supply activity of feedstock chemicals like Benzoic acid, that increased its prices marginally during Q1 2021. Thereby, overall prices-maintained stability and encountered a marginal growth till the end of March 2021. Despite of lower output of upstream materials, the supply remained substantially adequate, as the imports from Asian countries performed consistently well. In addition, rapid vaccination drive in USA also supported the market sentiments.
The Asian market met with mixed responses, as the preservatives segment continued to expand in several Asian countries, including India. In the Chinese market, the preservatives segment demonstrated consistent growth following the COVID 19 recovery. The price of Potassium Benzoate in the Indian market increased during February due to shortage, amid lower supply from China, which later came back to normal till the mid of the March. However, as the month of March came to a close, traders began to anticipate a surge in Potassium Benzoate prices in the coming month, as COVID cases were rising exponentially in India. Thus, the prices hovered around USD 4647/MT during the mid of February in India.
Potassium Benzoate was in high demand in Europe during the quarter, owing to the second wave of COVID 19 as well as post-recovery. Despite of congestion across major trade routes, traders were able to secure Potassium Benzoate stocks and the feedstock benzoic acid from the international market. However, owing to soaring shipping cost and a scarcity of containers, the shipments became more expensive month after month. Thus, the prices Potassium Benzoate demonstrated a marginal rise till the end of March ending.
For the Quarter Ending December 2020
Potassium Benzoate market experienced a stable growth across the APAC region during Q4 2020. The growth was driven by significant recovery of the service sector and industrial sector from COVID-19 induced slowdown. In addition, the festive season boosted the consumption of food products and deserts, which increased the demand of preservative Potassium Benzoate. Increased demand led to slight increment in prices of Potassium Benzoate. In India, the price of Potassium Benzoate rose from USD 3902.6 /tonne (October 2020) to USD 3946.4 /tonne (December 2020) on Ex-Depot basis.
Potassium Benzoate market of North America region remained low during October 2020. But the festivals and holidays during winter lifted the market sentiments. Festivals like Halloween, thanksgiving and Christmas led to increase in demand of food products and preservative Potassium Benzoate. Although the supply remained tight, due to reduced feedstock Benzoic Acid production as an effect of multiple hurricanes across the gulf coast demand remained balanced from the downstream derivative markets.
In Europe, most of the preservative Potassium Benzoate is used for animal feed. This is because many European countries have restricted the consumption of Potassium Benzoate by children. During Q4 2020, animal feed production remained low due spread of animal diseases like “African swine fever” in some European countries. That reduced the consumption of preservative Potassium Benzoate across the region. Several traders highlighted that high freight charges and container shortages from Asia tightened the traded volumes, thereby impacting the material availability in the region.