For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Potassium benzoate market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Potassium benzoate priced at USD 2440/MT CFR New York, showing an average quarterly increase of 0.33%.
In January 2024, the Potassium benzoate market experienced a significant downturn, characterized by dropping prices and a unified market sentiment. The USA played a pivotal role in this shift by implementing strategies to maintain competitiveness globally, thereby impacting prices worldwide. Other contributing factors included a decrease in benzoic acid costs in Germany and a decline in manufacturing activity within the USA. In March, the US market witnessed another price decline, propelled by reduced freight charges and the strength of the US dollar against other currencies. These factors, coupled with resumed trade activities, led to increased commodity availability, alleviating concerns regarding supply shortages. However, challenges such as subdued demand, sluggish purchasing, and low consumer confidence persisted. Market participants responded by adopting aggressive pricing strategies to stimulate demand and manage inventories, with the goal of establishing a more sustainable trading environment.
However, the prices did increase significantly in the middle of Q1, as the US Potassium benzoate market experienced a notable price surge driven by global supply chain challenges such as production slowdowns, export restrictions, and high freight charges. These challenges were aggravated by low inventories, Chinese production halts, increased demand post-holidays, geopolitical tensions, and rising container freight rates. Conversely, benzoic acid prices declined due to abundant domestic supply and market inertia, prompting cautious procurement.
Asia Pacific
In Q1 2024, the Potassium benzoate market in the APAC region, particularly in China, experienced notable price fluctuations but maintained an optimistic trend. By the end of the quarter, Potassium benzoate's price in China reached USD 2295/MT FOB Shanghai, showing an average quarterly increase of 0.72%.
In the beginning of the year, Potassium benzoate prices in China saw a consistent decrease because of lower demand and surplus stock caused by year-end destocking. Key reasons for this included strategic inventory cuts and reduced demand from various industries, aggravated by declining benzoic acid prices and fewer orders from Western and Northern markets. Competition among producers intensified due to oversupply, driving prices down further. Normalized freight charges, previously inflated due to geopolitical tensions, also eased, contributing to the price decline. Despite the relief from past supply issues, ongoing weak demand remains a significant challenge to market stability. Industry insiders suggest that domestic producers ramping up operations after turnarounds and outages partly contribute to the improved supply situation.
However, in February 2024, Potassium benzoate prices surged significantly due to increased demand, low inventories, halted production during the Chinese Lunar New Year, rising freight charges, and currency depreciation. Post-holiday purchasing sprees and strategic currency utilization boosted market confidence, with suppliers adjusting prices accordingly. Increased benzoic acid prices also supported Potassium benzoate costs, highlighting the need for stakeholders to navigate uncertainties with strategic decisions amidst market fluctuations.
Europe
In the first quarter of 2024, the Potassium benzoate market in Europe, specifically in CFR Hamburg, Germany, experienced price fluctuations influenced by various factors. Despite a slight quarterly decrease ending at USD 2380/MT, the market trended upwards due to heightened demand from downstream industries.
Factors such as reduced costs of raw material Benzoic acid and decreased manufacturing activity in Europe led to overall price declines during the period. In March, further price drops occurred in the German market due to lower freight charges and a stronger US dollar. Resumed trade improved commodity availability, easing concerns about supply shortages. However, challenges persisted, including weak demand and low consumer confidence. Market players responded by implementing aggressive pricing strategies to stimulate demand and manage inventories.
Midway through the quarter, a surge in demand and disruptions in the global supply chain caused shipment delays and material shortages, driving prices up. Currency fluctuations, including the Euro's depreciation against the dollar, added complexity to import costs. The German Potassium benzoate market witnessed a significant recovery with rising prices and a balanced supply-demand situation, fueled by increased regional orders and inventory reduction efforts. Additionally, price hikes in essential raw materials and the Euro's devaluation further influenced market dynamics.
For the Quarter Ending December 2023
North America
In the last quarter of 2023 (October to December), the North American Potassium Benzoate market experienced price fluctuations due to various influencing factors. Initially, the market encountered a moderate to high supply situation, attributed to substantial orders and increased production activities, resulting in improved inventory levels. Furthermore, the demand for Potassium Benzoate remained consistently moderate to high, driven by positive sentiments from end-user sectors and increased offtakes.
Additionally, there was an upward trend in prices, with Potassium Benzoate CFR Los Angeles reaching USD 2420/MT, accompanied by an average quarterly decline of 2.61%. The USA, being an importer, mirrored this trend. The decrease in prices in key Chinese provinces, significant players in the Potassium Benzoate market, had a widespread impact on overall pricing in the USA. Several factors contributed to this decrease, including reduced international demand prompting Chinese provinces to lower export prices.
A pivotal aspect in this scenario was the proactive approach of market participants who prioritized clearing their inventories before entering the new year of 2024. This strategic move ensured that the industry started anew in January, unburdened by excess stock and aligned with the anticipated market conditions.
Asia Pacific
The pricing of Potassium Benzoate in the APAC region showed a declining trend during the fourth quarter of 2023, influenced by several factors impacting the market. To begin with, the overall demand for Potassium Benzoate remained modest to low, primarily due to weakened economic conditions and a slow recovery in the region. Additionally, there was an excess of local inventory, leading to a reduction in prices as suppliers aimed to clear their stocks, intending to replenish their inventories with fresh stock in the upcoming quarter. Lastly, the market experienced a decrease in the prices of the raw material, Benzoic acid, further contributing to the decline in the Potassium Benzoate prices with low production cost. In China, where the most significant pricing changes occurred, Potassium Benzoate prices decreased by an average of 2.79% on a quarterly basis. Regarding price trends, the current quarter's price stands at USD 2250/MT FOB Shanghai in China. These fluctuations can be attributed to the aforementioned factors affecting the market.
Europe
In the final quarter of 2023, the European Potassium Benzoate market underwent a decline influenced by multiple factors affecting prices and market dynamics. From the beginning of Q4 until the end of November, the market experienced an impact from surplus inventory among suppliers, leading to a decrease in prices. Additionally, fluctuations in the cost of raw materials, particularly Benzoic acid, played a role in the price variability of Potassium Benzoate. A drop in Benzoic acid prices resulted in reduced production expenses, influencing the overall price trend for Potassium Benzoate. The global decline in prices, originating from major exporting nations like China, also contributed to this price decrease. The reduction in prices was a result of a combination of factors, including diminished international demand, excess inventory among suppliers, and a decline in raw material prices. The German market faced challenges in stock management, further contributing to the overall price decline, characterized by an imbalance between supply and demand, with consistently low demand for Potassium Benzoate. Subsequently, in December, prices surged due to tensions in the Red Sea and the Suez Canal, becoming a source of concern. These tensions broadened the threat to all ships passing through the Red Sea, even those unrelated to Israel, resulting in delayed shipments and increased freight costs in the European region. During this quarter, the Euro slightly appreciated against the USD. The latest Potassium Benzoate CFR Hamburg price in Germany for the current quarter stands at USD 2435/MT with and average quarterly decline of 1.51%.
For the Quarter Ending September 2023
North America
During Q3 of 2023, the CFR Los Angeles prices for Potassium Benzoate saw an increase from $2,550 per metric ton to $2,620 per metric ton, which resulted in a positive close to the third quarter of 2023. This upward price movement reflected a clear preference for higher price levels, showing an average quarterly increase of 0.65%. During the quarter, the domestic market for this nutraceutical witnessed a rise, primarily due to the growing demand for Potassium Benzoate in various end-user sectors. Notably, limited to modest inventory levels compelled sellers to gradually raise their prices each month, playing a significant role in supporting the optimistic price trend for Potassium Benzoate in the United States. Additionally, the cost of importing increased in the latter part of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. While inflation slowed down somewhat in the third quarter of 2023, driven by significant shifts in the US economy, the Federal Reserve's decision to raise interest rates kept market participants on alert. From the beginning of July, there was a noticeable surge in warehousing costs, warehouse usage, and inventory expenses in the United States. As a result, commodities like Potassium Benzoate saw price increases due to rising costs associated with inventory management and storage. To sum it up, it is likely that importing countries followed a trajectory similar to that of exporting countries during this period.
Asia Pacific
The third quarter of 2023 witnessed a significant price increase for Potassium Benzoate, with prices surging from $ 2360/mt in July to $ 2450/mt FOB Shanghai in September. This trend indicated a strong inclination towards higher prices, reflecting an average quarterly rise of 0.98%. China, the world's second-largest economy, had a slower growth rate than expected in the first half of 2023, which continued into the second half of the year, casting an unfavorable shadow over the beginning of the third quarter. This was primarily due to worsening deflation, high youth unemployment, and weak foreign demand. Several factors contributed to China's Potassium Benzoate price hike during this quarter, but the most influential was the strengthened Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Simultaneously, the raw material Benzoic acid prices in the Chinese market strengthened, driven by rising energy costs. Market dynamics showed supply constraints, with acid factories maintaining low inventories. While maintenance companies gradually resumed production, demand did not show significant improvement, leading to considerable market pressure. The increased value of the Yuan and the declining US dollar raised export costs, impacting both the local and foreign markets. Market players meeting general demand kept their supplies relatively low, and manufacturing production remained steady throughout the period. The heightened demand and supply chain disruptions created an imbalance, resulting in upward pressure on prices. In the latter weeks of September, just before the Golden Week holidays, there was a slight increase in both freight and manufacturing due to a spike in demand and inquiries. Another contributing factor to the price surge was strategic bulk ordering by market participants looking to replenish their inventories. The heightened demand prompted many buyers to expedite their Potassium Benzoate procurement, intensifying overall demand pressures during the holiday season.
Europe
During the third quarter of 2023, the cost of Potassium Benzoate displayed a consistent trend, with a slight rise from $2465 per metric ton in July to $2550 per metric ton CFR Hamburg in September. This pattern indicated a notable price increase, resulting in an average quarterly increase of 0.81%. In July, as the situation stabilized and the economy began to recover, German Potassium Benzoate suppliers started placing significant orders to replenish their inventories and meet the growing demand nationwide. However, industry experts noted that the German manufacturing sector was still facing challenges as the third quarter began. In response to increased demand from downstream companies, the import of Potassium Benzoate from Asia, particularly China, remained advantageous throughout the quarter. The depreciation of the Euro also played a significant role in driving up prices in Germany, as the strong US dollar forced local businesses to pay higher prices for imports from China. Economic factors, such as high inflation and a challenging manufacturing environment in Germany, continued to hinder growth, and market investors adopted a cautious "wait-and-see" approach. In summary, it is likely that importing nations followed a trajectory similar to that of exporting nations during this period.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the U.S. market for Potassium benzoate witnessed oscillation. In the first two months of Q2, the prices were recorded to be increasing stably in the wake of enhanced dynamics of supply and demand. Given the rising demand from end-user suppliers, there was a moderate lack of Potassium benzoate on the shelves of domestic warehouses which led to price inflation in the market. Asia-US trade has grown since the zero-covid tolerance policy was abolished. Eventually, at the commencement of June prices started to fall and the market witnessed a considerable plunge in the trajectory of Potassium benzoate in the US. The price was recorded at the end of Q2 2023, with an average quarterly inclination of 10.81%. The US Potassium benzoate market faced sluggish market sentiment due to demand cuts from the local downstream industries. Stocks remained in excess amount among weakening demand that insisted the suppliers sell at a lower price. The distributors were hesitant to place large orders due to the ongoing decline in price, which is expected to be increased further by the major players in the US Potassium benzoate market.
APAC
The Potassium benzoate market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. The price was valued and accessed at the end of Q2 2023, representing an average quarterly incline of 11.42%. At the commencement of Q2 till the mid of Q2 the Potassium benzoate market showed significant price inflation due to soaring domestic and international orders. China’s exports saw a better-than-expected market situation in April as consistent inquiries from the domestic and international markets remained above average. Also, the increased production rates to refill the inventories with fresh stock and cater to the upcoming demand market situation remained strong. The supply of Potassium benzoate has been somewhat constrained, due to several factors, including production disruptions in China and the ongoing war in Ukraine. This reduced supply has also contributed to the increase in prices. Also, the price of raw material benzoic acid increased which supported the market situation for potassium benzoate. Later with the termination of mid-Q2, the prices fluctuated, and the prices witnessed to deflate significantly. Due to the large inventory of Potassium benzoate in warehouses, suppliers had to lower their prices to clear existing stocks. In addition, this price trend was essentially supported by the decline in sales in the end-user sectors, and there were no new inquiries from domestic and international suppliers. The demand from downstream industries, such as food preservatives, plasticizers, and cosmetics, has been declining in recent months. The prices of raw materials used to make Potassium benzoate, that is benzoic acid have been declining which has also put downward pressure on Potassium benzoate prices.
Europe
In the second quarter of 2023, the Potassium benzoate in the European market saw fluctuations. With the inception of the second quarter, prices inflated backed by a supply-demand gap. This surge in prices was reinforced by a sudden surge in domestic inquiries across the nation. Furthermore, irrespective of weaker upstream benzoic acid prices the prices for Potassium benzoate excipients surged during the third month. According to the data, Europe's inflation rate decreased to 7.4%. The unexpected oil output cut decision by the OPEC+ members also had a favorable impact on the market environment. Increased energy costs, increased production expenses, and skyrocketing shipping costs all contributed to the market's continued strength. Later in the third month (June) of Q2, the prices depreciated and within no time the market for Potassium benzoate witnessed a substantial drop. At the termination of Q2 2023, the settlement price for Potassium benzoate was recorded with an average quarterly inclination of 10.75%. Also, the buyers were delaying placing large orders as the monsoon season was arriving, and therefore restocking was halted as the risk of damage increased. Suppliers were providing Potassium benzoate at a lower price, but buyers are still in the wait-and-watch situation for further price drops from mills. The ripple effect caused by weak demand and increased Potassium benzoate inventory level provoked the suppliers to decrease the offer price of Potassium benzoate in the German spot market.
For the Quarter Ending March 2023
North America
The cost of Potassium Benzoate in the North American region started to go down in the first quarter of 2023. Throughout Q1 2023, prices were anticipated to fall due to weak domestic demand. The high amount of inventory that domestic retailers held among themselves had a negative impact on the market situation. The market for Potassium Benzoate was being held back by low prices for feed benzoic acid, which also had an impact on production costs. Potassium Benzoate values were determined to be USD 1920/MT CFR Los Angeles at the end of the first quarter, with an average quarterly decrease of 1.81%. The low and consolidated shipping and product costs also contributed to the declining trend.
APAC
The price of Potassium Benzoate witnessed stable appreciation in the prices over the first quarter of 2023 in the APAC region. At the commencement of Q1 2023, the prices decreased due to a fall in consumer demand from the food, pharmaceutical, and nutraceutical industries that are downstream. At the end of Q1 2023, the prices were accessible at USD 1750/MT FOB-Shanghai, with a quarterly decline of 0.80% on average. With the commencement of February, the prices started to gain pace and increase till the termination of Q1 2023. Increased demand from both domestic as well as international market prices increased. Increased production costs and a hike in the manufacturing rate further supported the optimistic trend.
Europe
In the first quarter of 2023, the price of Potassium Benzoate in the European region began to decline. Prices were expected to decrease throughout Q1 2023 because of weak domestic demand. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. Low prices for feed benzoic acid, which also influenced production costs, were slowing down the market for potassium benzoate. At the end of the first quarter, potassium benzoate values were determined to be USD 1860/MT CFR Hamburg, with an average quarterly reduction of 4.57%. The cheap and consolidated shipping and goods costs also aided the decreased trend. Excess supply, falling demand, and weak economic activity are only a few of the reasons why transit and freight prices have decreased.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Potassium Benzoate prices kept dropping due to persistent market turbulence in the US. Imports were capped during the first week of October due to China's Golden Week holiday. The huge inventories held by domestic suppliers allowed them to fulfill the overall demand, and demand-related offtakes in the end-user industries remained consistent throughout the quarter. Supply chains were still at risk for much of the quarter due to China's Covid lockdowns, Russia's instability in Ukraine, and bad weather. However, the second half of 2022 witnessed a steady recovery in the supply chain as the economy began to grow, and the ports had a significant drop in ship backlogs following a protracted port backlog. Toward the end of the quarter, the prices were assessed around USD 2030/MT for CFR Los Angeles in December.
Asia Pacific
During the fourth quarter of 2022, prices in the domestic Chinese Potassium Benzoate market significantly decreased. The orders for China's sector producing nutraceuticals, including Potassium Benzoate, declined steadily during the first week of October as a result of the shutdown of industrial facilities for the Golden Week. Because Chinese traders had to contend with a variety of conflicting signals following a one-week hiatus, it was difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q4. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand. The administration amended its zero-covid rules in response to criticism and significant unrest in the nation, which once more left the nation exposed. Towards the end of the quarter, the prices for Potassium Benzoate were assessed at around USD 1710/MT for FOB Shanghai in December.
Europe
In the fourth quarter of 2022, prices for Potassium Benzoate in Europe began to decline, with CFR Hamburg values falling. Demand in Germany remained weaker throughout the quarter, making it difficult for the pharmaceutical and nutraceutical industries to plan and stay afloat. This was in addition to rising energy and raw material prices. Despite growing energy prices and supply-chain concerns, Germany's industrial production barely increased in October. Toward the end of the quarter, the prices for Potassium Benzoate were assessed around USD 2150/MT for CFR Hamburg in December.
For the Quarter Ending September 2022
North America
Due to erratic market dynamics, the North American market for Potassium Benzoate fluctuated during the third quarter. Due to a rise in demand from downstream end consumers, prices were raised in the first part of the quarter. Due to a significant increase in beverage consumption, potassium benzoate prices rose in Q3 2022. Potassium Benzoate Prices declined in the second half of the quarter because of a drop in the cost of the feedstock benzoic acid. China and Europe both receive benzene exports. The domestic market had much inventory, forcing the manufacturers to reduce their prices to sell their goods. Toward the end of the quarter, the prices were assessed around USD 2477/MT for CFR Los Angeles in September.
Asia Pacific
Costs for Potassium Benzoate varied in the Asian market in Q3 2022. Prices fluctuated because of inconsistent market dynamics. Due to an increase in demand from the end-user sectors, prices rose in the first half of the quarter. Furthermore, the distribution of Potassium Benzoate was noticeably slowed both domestically and abroad. Due to the restrictions, goods found it extremely difficult to transit across the nation and to key ports for international trade during the conflict. Due to the abundance of inventory in the domestic market, prices fell in the second part of the quarter. Products found it extraordinarily simple to travel throughout the nation and to key ports for international trade since logistics were widely accessible. Towards the end of the quarter, the prices for Potassium Benzoate were assessed at around USD 2050/MT for FOB Shanghai in September.
Europe
In Q3, the price of Potassium Benzoate in Europe was still being pressured by the subpar purchasing activity and the bad market mood. High inventories create pressure on businesses to sell their excess inventory into the local market because they have more products on hand. However, the high shipment costs and the protracted port obstruction continued to hinder the region's market perceptions of potassium benzoate. Because of cheap costs for raw materials and sluggish domestic market demand, the price of potassium benzoate has drastically dropped. It was highlighted that the cost of potassium benzoate in the nation's downstream sectors increased because the price of benzoic acid fell by enough percent in only two months. Towards the end of the quarter, the prices for Potassium Benzoate were assessed at around USD 2770/MT for CFR Hamburg in September.
For the quarter Ending June 2022
North America
The North American market for potassium benzoate experienced robust offtakes during this quarter, benefiting from the seasonal increase in demand from downstream end customers. Prices for potassium benzoate increased in Q2 2022 due to a sharp increase in beverage demand. The paucity of Benzoic Acid feedstock in the USA gave the price increase even more pace. Additionally, the feed additives market increased the cost of preservatives. The price of feedstock benzoic acid decreased as well on the domestic market. Benzene is exported to China and Europe. As a result of continued strong import performance from Asian nations, the supply remained more than adequate despite decreasing upstream material output. Rapid immunization campaigns in the USA also helped to buoy market sentiment.
Asia Pacific
In Q2 2022, PotassiumBenzoate costs skyrocketed in the Asian market. The return of Covid cases in China's major provinces has considerably impacted the monthly production and supply. Both domestically and internationally, potassium benzoate delivery was significantly slowed. Due to the limitations, products found it incredibly challenging to travel throughout the country and to crucial ports for international trade. The return of Covid cases in China's major provinces has considerably impacted the monthly production and supply. Logistics were under strain due to China's ludicrous zero-tolerance regulations and limitations. Due to the limitations, products found it incredibly challenging to travel throughout the country and to crucial ports for international trade.
Europe
Potassium Benzoate prices in Europe continued to be impacted by weak market sentiment and poor purchase activity in Q2. Enterprises with high inventories have more products on hand, which puts pressure on them to move their excess inventory into the local market. However, the region's market perceptions of potassium benzoate were kept hampered by the excessive shipment fees and the delayed port blockage. The price of potassium benzoate has significantly decreased due to low raw material costs and weak domestic market demand. It was noted that the price of benzoic acid dropped by more than 4.2 percent in just two months, affecting the cost of potassium benzoate in the country's downstream industries.
For the Quarter Ending March 2022
North America
Potassium Benzoate prices surged in North America during the 1st quarter of 2022, backed by firm downstream demand and increased upstream cost. As the demand from food and beverage industries enhanced, so did Potassium Benzoate prices. Meanwhile, the prices of upstream Benzene witnessed consistent rise in the entire quarter, which consequently led to a price hike in Potassium Benzoate. Furthermore, firm crude oil prices, augmented logistic charges, congested ports, cargoes shortage, and continued labor shortage amid Russia-Ukraine war tensions exacerbated the price value of Potassium Benzoate. Conclusively, in the USA, the prices of Potassium Benzoate assembled at USD 2382/MT CFR Texas in January, which inclined to USD 3388/MT in February CFR Texas.
Asia Pacific
The Asia-Pacific region witnessed a complete reversal from the Potassium Benzoate trend in North America; the prices of Potassium Benzoate were declining throughout the quarter in countries like India. The reason behind the dropped price value of Potassium benzoate was a sufficient level of inventories to cater to the overall demand. Meanwhile, the demand for potassium Benzoate from end-user industries was stable, and due to market competitiveness, the prices declined gradually during the entire quarter. In the Indian domestic market, the evaluated prices of Potassium Benzoate at Ex-Mumbai were USD 3711.14/MT during January, which escalated to USD 3373.52/MT in March.
Europe
The Potassium Benzoate market in Europe mimicked the North American market and showcased a soaring pricing trend during Q1-2022. The prices of Potassium Benzoate increased in domestic marketing owing to escalated consumption of the same in the Food and Beverages industries. Besides, surged price value of feedstock Benzoic Acid further propelled the prices of Potassium Benzoate. In addition, continued transport restrictions incremented crude oil prices, and logistic charges amidst Russia-Ukraine war tensions added to the already augmented price value of Potassium Benzoate. Hence, the prices of Potassium Benzoate in Germany settled at USD 3429/MT CFR Hamburg during the month of January, which inclined further till March.
For the quarter Ending December 2021
North America
In North America, the costs of Potassium Benzoate declined in the US domestic market during the final quarter of 2021.Low purchasing esteem and deteriorating demand resulted in such trajectory. Feedstock Benzoic acid prices were also fell in the domestic market, Benzene exports to regions like China and Europe, which fell by practically 83% from October to November because of drawn out supply length due, which upheld the descending direction of the value pattern of Benzoic Acid in the country. Benzoic Acid costs diminished from USD 4762/MT to USD 4326/MT CFR Texas from October to December. Downstream preservative market was also affected by low purchases and feeble demand from the consumer's end.
Asia Pacific
In this quarter, the prices Potassium Benzoate slipped with the succeeding months of last quarter of 2021. On the back of feeble raw material cost amid weak offtakes from the domestic market, Potassium Benzoate price has slipped effectively. It was observed that Benzoic acid prices has dip by more than 4.2% within two months, affecting price of downstream Potassium Benzoate in the country. In October, the prices of Potassium Benzoate in India observed to be $4228/ton Ex-Kolkata and at the end of the quarter the prices were slipped to $4046/ton Ex-Kolkata where prices slipped by more than 4%. Feedstock Benzoic prices were also slipped in this quarter with oversupplies of the product in the countries mainly India and China.
Europe
In Q4, the prices of Potassium Benzoate in Europe remain affected with low purchasing activities and effected market sentiments. High inventories among the enterprises increases the existing stocks of the products which created pressure on them to sell the stocks in the regional market. However, the exorbitant cargo charges and delayed port blockage kept on hampering the market opinions of Potassium Benzoate in the region.
For the Quarter Ending September 2021
North America
In the North America region, the Potassium Benzoate market sentiments remained high in the third quarter, owing to the seasonal increase in demand from downstream end users during the third quarter of 2021. In US, Potassium Benzoate prices rose significantly in Q3 2021, owing to increased demand from the Beverage industry. Moreover, scarcity of the feedstock Benzoic Acid in the region as an impact of Ida hurricane also led to the increment in the prices of Potassium Benzoate in this timeframe. Hence, in the North America, the prices of Potassium Benzoate witnessed an upward rally throughout the quarter.
Asia
In Asia, the market sentiments of Potassium Benzoate remained firm during the third quarter of 2021 due to the heavy demand for food preservatives. In India, the Potassium Benzoate prices soared in this quarter amid speculative restocking of the product owing to its high demand. However, traders remained cautious over a significant increment in its prices as it can hurt the flow of the present offtakes. Moreover, since demand for food preservatives gradual declines during winter season, most of the traders eyed to clear maximum cargoes in between its lucrative demand. In addition, the exorbitant freight charges also sent ripples to the values of Potassium Benzoate. Henceforth, Ex Kolkata prices rose to USD 4202.62 per MT from USD 4157.25/MT during the timeframe of July to September.
Europe
In Europe, the prices of Potassium Benzoate witnessed an upward trajectory similarly as other regions during the third quarter of 2021. An uprise in the pricing trend was witnessed due to improvement in the demand outlook after the resurgence in the market activities. In addition, spike in the values of feedstock Benzoic Acid also contributed to the inflation in the prices of Potassium Benzoate in Europe. Besides, spiraling freight charges and delayed imports also led to hike in the prices of Potassium Benzoate in Q3.
For the Quarter Ending June 2021
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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.
Europe
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.
