For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a marked increase in Potassium Sorbate prices with a steady drop witnessed in the beginning across North America, driven by a confluence of factors that significantly influenced market dynamics. Focusing on the USA, which experienced the most pronounced price changes, the quarter demonstrated an unmistakable upward trend. Seasonality played a significant role, with increased demand during warmer months, correlating with a 3% price rise from the previous quarter. The correlation between raw material shortages and heightened consumer demand drove prices steadily upward, reinforcing the positive pricing environment.
The quarter overall remained optimistic with a robust uptick in regional demand, particularly from the food sector, which relies heavily on Potassium Sorbate for its preservative properties. This surge in demand was met with constrained supply conditions, exacerbated by the limited availability of feed sorbic acid, a crucial raw material. Additionally, global supply chain disruptions, including militant attacks in the Red Sea and potential labor disputes at ports, further strained the market. The early onset of the peak shipping season magnified these challenges, precipitating a persistent supply crunch with inquiries gradually being on the northerly side. Overall, the pricing environment for Potassium Sorbate in Q2 2024 was characterized as positive, with substantial upward momentum driven by supply chain disruptions, rising demand, and constrained supply conditions.
APAC
In Q2 2024, Potassium Sorbate prices in the APAC region exhibited a stable trajectory with prices witnessing an overall mixed trend, driven by multiple significant factors. Focusing specifically on China, the market dynamics were markedly influenced by a combination of strong regional demand and limited supply. The quarter witnessed robust demand from end-user sectors, including the food and cosmetics industries, alongside heightened production costs due to rising raw material prices and increased energy costs. Additionally, on the raw material front, a substantial decline in feedstock Sorbic resulted in a lower production cost while increasing in prices of its end-product. This was supported by, a price rise in other production expenses including energy, labor, and storage. While, importing countries actively engaged in pre-stocking activities in preparation for the upcoming summer season, prompting exporting market enterprises to prioritize depleting existing inventory, therby trading them at a higher cost. Lastly, as the second quarter concluded, scheduled maintenance shutdowns at several manufacturing plants and insufficient inventory stockpiling created a supply crunch that contributed to the price hike. Overall, this combination of factors — improved industrial profitability, strong export demand, supply chain disruptions, increased market inquiries, robust customer interest, and seasonal maintenance— led to a significant market upswing for Potassium Sorbate export prices during June 2024. However, the market somewhat eased in the middle of the quarter, supporting a modest drop in exporting prices concerning the Potassium Sorbate. Where, on the supply side, merchant inventories considering the Potassium Sorbate were considered adequate to meet incoming inquiries for May. While the enthusiasm for procurement remained weakened, and the price of new orders was close to cost. Manufacturers had further weakened their profit sentiment to destroy their inventories. Also, various measures, including output reduction, adjustments to production schedules, and occasional halting of production lines, were implemented to align the supply with the diminished demand side. In response to the challenging market conditions, strategies such as the adoption of just-in-time inventory systems and the offering of discounts to facilitate the movement of excess inventory were observed. Overall, compared to the previous quarter, prices surged by 0.09 percent on an average basis, underscoring the impact of sustained demand and supply side.
Europe
During the entire second quarter of 2024, the European Potassium Sorbate market experienced a notable upward trajectory in prices. This quarter was marked by several significant factors driving the increase. One primary reason was the resurgence in downstream purchasing activity, particularly from the food industry, leading to robust demand across the region. Furthermore, the heightened production costs across the producing nations, propelled by rising feedstock prices, notably Sorbic Acid, contributed to the upward pressure on Potassium Sorbate prices. The depreciation of the US dollar added to the complexity, making imports costlier from key producing nations. Additionally, supply chain disruptions, including logistical challenges and plant shutdowns in major exporting countries, exacerbated product availability issues, thereby influencing market prices. The German market, in particular, observed the sharpest price hikes due to the robust demand coupled with supply chain constraints. Seasonality also played a crucial role, with summer approaching and increasing demand from the pharmaceuticals and food sectors, the market players were keen to procure sufficient among of inventories to prevent any further shortages. Overall, the pricing environment was positive, underscoring a bullish market sentiment and the resilience of the product's demand amid various market disruptions.
For the Quarter Ending March 2024
North America
The pricing dynamics of Potassium Sorbate in the North American region during Q1 2024 showed an overall downward trend, with a slight increase observed at the beginning of the quarter. This trend was influenced by various factors, including an excess of inventory, reduced downstream demand, fluctuating trade momentum, and cautious purchasing practices.
The presence of higher-than-usual stockpiles among market participants and continuous declining downstream purchasing activity prompted suppliers to focus on clearing existing inventories, leading to continued price decreases. Ahead of a consistent drop in regional quotations, the downstream manufacturing activity in the USA's food and pharmaceutical industries, where Potassium Sorbate is used as an excipient, further declined, with merchants majorly focused on destocking inventories and further avoiding additional storage costs. Overall, the buying sentiment for Potassium Sorbate remained subdued, with the quarter ending on a pessimistic note.
However, the price trajectory initially rose in Q1 due to increased demand from downstream sectors, prompting bulk orders to replenish inventories. Supporting this, the United States, a major importer of Potassium Sorbate, aligned its pricing strategy with exporting regions to remain competitive. Export challenges, such as shipping reroutes to avoid the Red Sea, drove up shipping costs, causing order cancellations and delays. High container freight rates worsened the situation, affecting maritime-dependent industries and leading to higher import prices. overall, despite a modest rise in January, adjustments in pricing strategies by the USA influenced the global Potassium Sorbate market, resulting in a price drop throughout the quarter. As Q1 ended in March, the price of Potassium Sorbate in the USA was recorded at USD 2490/MT CFR New York.
APAC
In the first quarter of 2024, the pricing pattern of Potassium Sorbate in the APAC region followed a predominantly downward trajectory, marked by slight fluctuations in January. Initially, there was a modest uptick in Potassium Sorbate prices, driven by increased demand in sectors such as food and beverages, personal care, and preservatives sectors. However, logistical challenges intensified due to consistent increases in freight and transportation costs, exacerbating the imbalance between supply and demand and making procurement challenging for importers, resulting in a price rise as traders were accepting the goods at a higher cost. However, as the quarter progressed, prices saw a significant decline, influenced by factors like subdued demand, surplus inventory from the previous month, and sluggish trade activity both domestically and internationally. Furthermore, despite the expectations of increased demand for Chinese exports done in the previous month, the anticipated uptick did not materialize, raising uncertainties about buyer behavior and market dynamics. Additionally, the depreciation of the Chinese currency (CNY) against the USD played a significant role, strengthening market resilience and positively impacting price trends. Importing regions leveraged the weakened CNY to adopt cost-effective procurement strategies, supporting an overall optimistic market sentiment. Nevertheless, despite these positive market sentiments the overall purchasing activity for Potassium Sorbate from the downstream and overseas markets remained on the lower side, demonstrating a weakened trade momentum. Overall, in Q1 2024, Potassium Sorbate experienced a negative pricing trend due to weak demand and excess supply with a modest increase observed in January, and the prices were recorded at USD 2330/MT FOB Shanghai, the trend reflected a downturn compared to the previous quarter.
Europe
In Q1 2024, the Potassium Sorbate market in Europe experienced a predominantly downward trajectory due to various factors. As a major importer of Potassium Sorbate, Germany strategically adjusted its pricing strategy to align with exporting nations, aiming to maintain competitiveness globally. This strategic move influenced the global market, resulting in a downward price trend. The market situation for Potassium Sorbate reflected a delicate balance between supply and demand, with ample inventories meeting overall demand but hindered by factors such as declining inflation rates, economic slowdowns, and geopolitical tensions, leading to higher freight costs and reluctance among buyers and traders to negotiate new prices and place future quotations. However, in January, Potassium Sorbate prices saw a slight increase due to balanced supply and demand. Merchants witnessed a steady rise in regional consumption of potassium sorbate from end-users food sectors. As a result, continuous heightened imports in the region, despite higher freight costs affected due to trade disruption ahead of the Red Sea dispute, contributed to this trend. Furthermore, the depreciation of the Euro against the dollar led suppliers to trade their goods at higher prices in the region to maximize profits. Overall, the pricing environment for Potassium Sorbate in Europe, particularly in Germany, was negative in Q1 2024, marked by a significant price decline until the final weeks of March albeit a modest rise witnessed in January 2024. As the quarter concluded, the latest recorded price for Potassium Sorbate in Germany stood at USD 2450/MT CFR Hamburg.
For the Quarter Ending December 2023
North America
In the North American region, the pricing trajectory of Potassium Sorbate initially witnessed a substantial increase at the beginning of the fourth quarter (Q4). However, it underwent a significant decline as mid-Q4 approached, only to rebound considerably as December 2023 came to a close. Various factors influenced this pricing evolution. Primarily, there was a noteworthy surge in consumer demand, leading to increased inquiries and purchases. This heightened demand was propelled by factors such as a rebound in the manufacturing sector, escalating inflation, and enhanced business confidence.
Notably, the spot market price of Potassium Sorbate in the US experienced a considerable surge, driven by heightened production rates in foreign mines in China responding to increased demands from international traders. Speculative buying by some purchasers, anticipating potential future increases in excipient prices, contributed to the overall escalation in prices across the region. Furthermore, the cost of the feedstock Sorbic acid increased, providing additional support to the positive price trend for Potassium Sorbate. As we progressed into November 2023, Potassium Sorbate prices saw a substantial drop. The Purchasing Managers' Index (PMI) for the United States contracted, decreasing from 50.4 in October 2023 to 46.7 in November 2023. On the supply side, suppliers and retailers of Potassium Sorbate held a significant amount of inventory close to the cost line, with large traders controlling a concentrated supply in the domestic market.
Consequently, some market players focused on early discounted selling. As the USA operates as an importer, it follows this prevailing trend. The drop in prices observed in significant Chinese provinces, key players in the Potassium Sorbate market, had a widespread impact on overall pricing within the USA. The limited presence of traders and goods circulating in the market contributed to a small transaction volume. The trend reversed again as December 2023 concluded, with a notable rebound in downstream inquiries and increased consumption within the region. However, on the overall supply side, Potassium Sorbate inventories among market participants remained sufficient to meet incoming inquiries within the region. Additionally, rising freight costs and fuel expenses kept overall transportation costs on the higher side throughout December, contributing to the continuous rise in importing prices, ultimately settling at USD 2610 /MT.
Asia Pacific
During the fourth quarter of 2023, the Potassium Sorbate market in the APAC region experienced notable fluctuations in both price and demand. The initial phase of the quarter witnessed an upward price trend, followed by a significant decline in November, and a subsequent rebound as December concluded. As of October 2023, the FOB price negotiation for Potassium Sorbates saw a substantial increase. This surge was primarily driven by heightened demand from importing regions, attributed to winter celebrations leading to increased consumption of beverages and processed foods in the food industries. The festive period resulted in elevated demand in the excipient sectors. Additionally, market activity in China indicated a rise in energy and upstream costs, subsequently increasing production and transportation expenses. This factor further contributed to the heightened pricing trajectory observed for Potassium Sorbate during this period. However, as November 2023 unfolded, the downstream sector experienced a significant reduction in new inquiries, primarily linked to subdued activity levels in the Chinese spot market. Suppliers and traders adjusted their inventory levels based on anticipated demand and market conditions. Anticipating lower demand or expecting price declines, buyers significantly reduced their purchasing activity, contributing to the overall decrease in demand. Furthermore, in November 2023, the official Purchasing Managers' Index (PMI) reported by the National Bureau of Statistics declined to 49.4, reflecting the economic slowdown's dampening effect on excipient demand. As economic activity slowed down, pharmaceutical companies scaled back production volumes in alignment with lower demand forecasts, resulting in declining prices for various excipients. Towards the end of Q4, in December 2023, prices rebounded moderately. Capitalizing on increased demand during the holiday season and aiming to benefit from higher consumer spending, this rebound supported an optimistic market trajectory. Additionally, while global demand played a significant role, a specific spike in demand for sorbates within a particular region may have exceeded domestic production capacity, resulting in a localized price increase. Overall, the values of Potassium Sorbate as December 2023 concludes were assembled at USD 2430/MT.
Europe
During the fourth quarter of 2023, various factors played a role in influencing the prices of Potassium Sorbate in the European market. In October 2023, Germany experienced a price uptick, matching the rate at which it had dropped the previous month. This increase was driven by heightened demand from the downstream food and beverage sector, contributing to an overall upward trend in the market. Moreover, Germany saw a positive shift in its business climate index, improving from 85.8 points in September to 86.9 points. Businesses expressed greater satisfaction with current situations and displayed reduced pessimism about future prospects. The manufacturing sector saw a slight increase in the business climate index, primarily attributed to decreased skepticism among businesses. In contrast, November 2023 witnessed a substantial decrease in demand, resulting in a surplus of Potassium Sorbate in the region. This oversupply intensified competition among sellers, leading to price reductions to attract buyers. Additionally, the decline in raw material costs, specifically the cost of Sorbic Acid, played a crucial role in reducing Potassium Sorbate prices. Suppliers and traders strategically adjusted pricing practices to preserve market share or respond to prevailing market conditions. Various market indicators suggest that Germany's overall Potassium Sorbate supply remained stable, with import quotations temporarily ceasing due to a balanced supply and demand equilibrium, alleviating upward pressure on prices. As consumers and market players observed excessive supplies, reduced downstream consumption prompted traders to retract future quotations, supporting a pessimistic market outlook and sustaining market sentiments in a southerly direction. However, moving into December 2023, the Potassium Sorbate market exhibited a positive trend, fueled by a resurgence in demand and a sudden increase in consumption within downstream end-user segments, particularly in the food and beverage industries. This uptick stimulated demand, leading some companies to adjust prices to restore previous profit margins. Adding to this momentum, the escalating costs of fuel and freight from major exporting nations have further sustained a positive market trajectory for Potassium Sorbate as of December 2023 with prices settling at USD 2645/MT CFR Hamburg.
For the Quarter Ending September 2023
North America
Throughout the third quarter of 2023, the prices of Potassium Sorbate demonstrate a declining price trajectory with a very minute rise in August 2023. Following a continuous weaker trend since the previous month, the prices as July commenced went down steadily and mimicked market sentiments of its upstream feed Sorbic Acid during the whole of July. Moreover, on account of weaker end-user demand from the Food and Beverage, bakery, and preservative sectors with excessive stockpiling among the domestic merchants, the local suppliers were cautious and reluctant to raise their shelves with fresh stock. Additionally, the United States' importing activity significantly decreased in July, and this was attributed to Businesses paying more for shipping and other expenses when importing goods because of rising inflation. Businesses might import fewer goods from abroad as a result because they may not be able to afford the higher prices. While moving towards the middle of the Q3, i.e., in August, the prices improved to some extent because of an increase in local inquiries from downstream food and preservative sectors. With rising upstream costs and an adequate supply, the demand for Potassium Sorbate drops again as Q3 concludes in September. With this, the prices recorded for Potassium Sorbate were assembled at USD 2530/MT across the US market.
Asia Pacific
Across the APAC region, primarily in China, the costs of Potassium Sorbate continue to follow its downward price trajectory with diminishing cost at the beginning of the third quarter of 2023. This consistent drop in the price values for Potassium Sorbate was supported by weakened consumer demand and excessive stockpiled inventories. Moreover, the market transactions were mainly based on immediate requirements. Additionally, the region's extreme heat waves and heavy rainstorms have severely degraded final products, including potassium sorbate, further alarmed the merchants and forced them to reduce their prices. It was further added to this, according to the Statistics Bureau and the China Federation of Logistics & Purchasing. As the demand for Chinese exports declined, several developing countries raised their interest rates to curb record-breaking inflation. However, moving towards mid-Q3, the prices demonstrated a moderate rise as inquiries from the domestic market improved, which was, however, balanced with overall availability among the market participants. While moving towards the end of Q3, i.e., in September, the demand remained feeble, and the prices decreased by more than 2 percent and were assembled at USD 2420/MT.
Europe
Within the European region, majorly across the German market, the prices of Potassium sorbate continued their declining trend throughout the third quarter of 2023, mimicking the market trajectory of the USA. The prices went down steadily as of July 2023, with merchants having more than enough inventory levels to cater to the overall rise in demand both within the domestic market and inquiries arriving from the neighboring regions. Adding to this, Germany's high energy costs made an already complicated situation even more challenging. Market analysts note that prices have been rapidly declining since the beginning of 2023 due to high inventories and hazy economic conditions. Buyers were additionally placing limited orders because they anticipated a long-term growth rate, according to key market participants. However, as we approach towards the mid-Q3, Potassium Sorbate witnesses a very moderate rise in its prices. In order to stop the further deterioration of accumulated end products, the merchants were able to destock their inventories thanks to a moderate increase in demand. Moving towards the termination of the second quarter, i.e., In September, the prices went down again but at a stable rate compared to the previous month, and the prices were assisted at USD 2515/MT.
For the Quarter Ending June 2023
North America
Across the North American region, the costs of Potassium Sorbate portray a comparable pricing trend as that of the APAC region. All through the second quarter, costs of Potassium Sorbate diminished by an average of more than 11% across the North American territory. The fluctuating upstream market of Sorbic acid and a consistent diminishing in local requests from downstream superficial, food, and personal care ventures upheld the diminishing cost pattern until the end of June. Nonetheless, in June, Potassium Sorbate costs across the district were recorded at USD 2580/MT CFR New York. Considering the consumer price index for June in North America, primarily in the United States, it increased by 0.1 percent in June 2023 compared with May, with domestic providers of Potassium Sorbate having adequate stock available to fulfill nearby interest throughout Q2-2023. Besides, pursuing the earlier month's trajectory, the imports in the US were slightly on the upper side owing to the weakening of the Chinese Yuan against the USD, which helped the traders and suppliers to purchase goods at cheaper rates and sell them at a higher price or a usual rate depending on their profit margins.
Asia Pacific
Across the APAC area, the costs of Potassium Sorbate proceed with their diminishing cost starting from the middle of the first quarter of 2023. Potassium Sorbate's cost was primarily impacted by the continuous decrease in its upstream Sorbic Acid cost, trailed by a sharp expansion in its inventories among the vendors. As April comes to an end and supply balances out with demand among domestic Merchants, the prices were settled at USD 3075/MT in China. However, in May also, the demand for Upstream sorbic acid continued to remain bearish, and the availability was more than enough for the manufacturing of downstream Potassium Sorbate. However, from April and May, the official manufacturing purchasing managers' index (PMI) came in at 49.0 in June — compared to 48.8 in May and 49.2 in April — according to data from the National Bureau of Statistics, the production for various sectors including the excipient continued to remain feeble. Additionally, the merchants were keen to offer their products at discounted prices so that they could balance out their profit margins for this quarter. With this, the prices for Potassium Sorbate at the end of the second quarter were settled at USD 2500/MT FOB Shanghai.
Europe
Potassium sorbate prices in the German market followed a declining trend throughout the second quarter of 2023 due to a decrease in inquiries from the downstream food and personal care industry. The local retailers' abundance of stocks, along with declining upstream Sorbic Acid costs, contributed to the depressing market environment as April commenced. Moreover, moving towards the termination of the second quarter, i.e., In June, the prices went down by more than 16 percent compared to the previous month. One of the primary reasons behind this includes lessening purchasing activity owing to the disrupted weather conditions and ongoing Labor crisis, and rising energy costs which have put downward pressure on Potassium Sorbate imports. The buyers were also reluctant to place large orders due to the onset of seasonal changes, and as a result, the restocking process was stopped due to the increased risk of damage. With this, the prices for Potassium Sorbate Excipients in the German market were assessed at USD 2535/MT CFR Hamburg.
For the Quarter Ending March 2023
North America
Potassium Sorbate market conditions in the North American region, primarily in the United States, declined throughout the first quarter of 2023. According to market fundamentals, prices decrease to be on the lower end due to limited domestic demand along with an abundance of inventory held by domestic retailers. Potassium Sorbate values recorded were assembled at USD 3765/MT at the end of the first quarter. The negative trajectory was further reinforced by consistent drop-in trade activity irrespective of lower freight charges owing to which domestic retailers pulled back their newer orders from export nations and focused on destocking their piled-up stocks.
APAC
Potassium Sorbate market prices experience a sharp decline in the first quarter of 2023 due to a decrease in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries. Additionally, throughout the first quarter of 2023, feedstock Sorbic Acid prices fell, weakening the downstream Potassium Sorbate market. Domestic Sorbic manufacturers had sufficient supply, the supply from border trade sources increased significantly, and prices decreased. Additionally, trading for both upstream sorbic Acid and downstream Potassium Sorbate market was cold. At the end of Q1 2023, the prices recorded for Potassium Sorbate were assembled at USD 3675 /MT in China, with adequate supplies balancing the overall demand.
Europe
The market for Potassium Sorbate in the European region saw a decline in prices in the first quarter of 2023. Prices remained on the lower end due to weak domestic demand, according to market fundamentals. The market situation was adversely affected by the large amount of inventory that domestic retailers held among themselves. At the end of the first quarter, Potassium Sorbate values were found to be USD 3730/MT. The combined pricing trajectory for the feedstock Sorbic Acid and the low production costs further supported the downward trajectory throughout this quarter. Besides this, the decrease in freight costs in March and energy prices kept the market trend for Potassium Sorbate unaffected throughout the first quarter.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, North America's Potassium Sorbate API market experienced fluctuating trend. 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. Furthermore, the price of sorbic acid as a feedstock decreased, maintaining the feeble market situation. In December, the Potassium Sorbate API settlement price fell to USD 5380/MT CFR in Houston.
Asia
The Potassium Sorbate API market in the fourth quarter of 2022 in Asia Pacific showcased fluctuating trajectory. Price increases were observed to be on the higher side until the second 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. Later in December, as domestic merchants had sufficient stock on hand, Potassium Sorbate API prices did begin to decline markedly. Furthermore, the prices of feedstock Sorbic acid declined, keeping 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 Potassium Sorbate API fell to USD 4650/MT FOB Shanghai.
Europe
Prices for Potassium Sorbate API in the fourth quarter of 2022 demonstrated turmoil across the European continent. In the first two 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 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. In addition, the cost of sorbic acid as a feedstock dropped, keeping the market weak. The cost of Potassium Sorbate API was USD 5690/MT CFR Hamburg toward the end of Q4 2022.
For the Quarter Ending September 2022
North America
The North American market for Potassium Sorbate displayed a downward trend throughout the third quarter of 2022, with CFR New York prices settling at USD 2800/MT in July and then decreasing even further to USD 2745/MT in September. However, domestic merchants were compelled to cut their quotations due to the weak end-user demand for the pharmaceutical and food industries. The continued lockdowns in Chinese ports, along with the shutdown of some manufacturing plants for maintenance, resulted in a solid wait-and-see attitude among US traders. Otherwise, domestic merchants had enough inventories with them to meet the overall demand. The above factors significantly impacted the downward pricing trend with a quarterly decline of 4.1%.
Asia- Pacific
During the third quarter of 2022, the prices of Potassium sorbate followed a downward trajectory of feedstock Sorbic Acid in the Asia-Pacific region. Also, the producer of sorbic acid in China shut down its facility for maintenance. Despite this, the shutdown had not caused severe supply chain disruption because the end-user demand for Potassium Sorbate was weak. During the first half, big suppliers only made orders for immediate use, and in July, FOB Shanghai prices came to USD 6170/MT. However, the Asian countries had enough inventory on hand after the factories resumed operations following the shutdown, coupled with further reduction in the prices of Potassium Sorbate. Therefore, by the end of the quarter, the Potassium Sorbate prices were assessed at USD 6080/MT FOB Shanghai.
Europe
The third quarter of 2022 began out positively for the European Potassium Sorbate market, with prices estimated at USD 3230 per MT in July. These costs eventually dropped, though, and were assembled at USD 3175 per MT in September. Germany's logistical problems this quarter worsened the country's economic downturn as transportation bottlenecks continued. Due to the continued lockdowns at Chinese ports and the instability in Russia and Ukraine, the situation in Europe deteriorated. Domestic merchants were compelled to cut their quotes for Potassium Sorbate in the second half of the third quarter because of the sluggish end-user demand for the pharmaceutical and nutraceutical sectors.
For the Quarter Ending June 2022
North America
Potassium Sorbate prices surged in North America with solid buying sentiment in the regional market during the second quarter of 2022. As the demand for Potassium Sorbate from end-user businesses, especially pharmaceutical and cosmetic industries, enhanced dramatically in the United States, so did Potassium Sorbate prices. Meanwhile, the prices of upstream sorbic acid witnessed a consistent rise in the entire quarter, leading to a price hike in Potassium Sorbate. Rising freight costs and transportation prices also aided the price trend in the US market, as the commodity is mainly imported from Asia-Pacific countries. Some American importers struggled to meet demand in May, as stockpiles remained low and supply lines were stretched to accommodate unprecedented cargo volumes, notably from China. The prices for Potassium Sorbate were assessed at USD 7260/MT in the United States at the end of the quarter.
Asia- Pacific
During the second quarter of 2022, the prices of Potassium sorbate showcased an upward trajectory in the Asia-Pacific region due to extending demand and disrupted supply in the regional market. On the back of unprecedentedly rising Covid cases and the extended trade disruptions that followed, Potassium sorbate market sentiments exhibited positiveness across the domestic market. Also, the continuous war between Russia and Ukraine indirectly led to increased raw material Sorbic acid costs, further putting the market players in a wait-and-see mood. In the Chinese market, the evaluated prices of Potassium Sorbate at FOB Shanghai were USD 6050/MT during April, which settled to USD 6150/MT in June. It is expected to remain stable in the next quarter.
Europe
The Potassium Sorbate market in the European region mimicked the North American market and showcased a soaring pricing trend during the second quarter of 2022. The prices of Potassium Sorbate increased in domestic marketing owing to escalated consumption of the same in the pharmaceutical industries as an inactive ingredient. Besides, surged price value of feedstock Sorbic Acid further propelled the prices of Potassium Sorbate. 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 Sorbate. The costs of shipping containers and scheduled delays between Asia–Europe also exacerbated Potassium Sorbate prices effectively in Europe.