For the Quarter Ending June 2023
North America
In the second quarter of 2023, Sodium benzoate prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. The price was valued at the end of Q2 2023, representing an average quarterly decline of 3.65%. in the beginning, because of improved dynamics of supply and demand, the CFR New York values of Sodium Benzoate in the US market dramatically increased. Since the zero-tolerance policy was abandoned, trade between Asia and the US has increased. There was a mild shortage of Sodium Benzoate on the shelves of domestic warehouses because of the increasing demand from end-user suppliers. Also, increased raw material benzoic acid prices further supported the upward trend. Later dwindled market situation was witnessed as the price of Sodium Benzoate was weak and consolidating, with most downstream markets experiencing average demand recently. Also, the upstream Sodium bicarbonate price was operating to be weaker this month. The cost of energy, which is a major input cost for sodium bicarbonate production, has declined in recent months, due to the slowdown in the global economy and the decline in the price of oil further supported the lower trajectory of Sodium Benzoate. Also, to destock their existing inventories due to seasonal changes sodium benzoate is available in powdered form which also kept the market feeble. Also, distributors are hesitant to place large orders due to the falling prices. Major players in the market are expected to further reduce prices in the coming months. The price of feedstock has also declined due to a surplus supply and increased production.
APAC
The market price of Sodium benzoate collectively declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 3.58%. At the beginning of Q2, the upward trend was largely driven by the increase in demand from end-use industries, including the food and beverage sectors. Also, increasing raw material Benzoic acid prices, and the increased production rates in order to refill the inventories with fresh stock and to cater to the upcoming demand market situation remained strong. Also, the OPEC+ surprise cut announcement and rebounding China demand outlook have propelled the Sodium Benzoate market to be strong. Furthermore, Chinese exports continue to perform better trade activities in April. Also, increase energy prices and hiked-up production costs influenced the positive market situation. Later, the Sodium benzoate prices showcased a downward momentum in the Chinese market owing to the relapsing feedstock benzoic acid price trajectory. The Uncertain downstream inquiries over the course of this month further kept the market feeble. The demand for Sodium benzoate from the downstream food and beverages, cosmetics, and preservative industries declined amid uncertain economic conditions and the increasing inflation rate halted the trade process. The inventory level of the Sodium benzoate was at a higher edge as they increased their production rate. The feedstock suppliers were offering benzoic acid at a cheaper price in the spot market which reduced the cost support for Sodium benzoate. According to the major market players, the buyers were shying away from placing large orders as they suspected a further decline in price.
Europe
In the second quarter of 2023, the demand for Sodium benzoate decreased, leading to a decline in market prices. Sodium benzoate prices fell by an average quarterly declination of 3.65%. At the commencement of Q2, the sodium Benzoate's price trajectory witnessed a major upward trend. The market's fundamentals revealed that rising domestic demand was the main driver of higher prices for sodium Benzoate in April. The market in Germany will likely be driven by new production in exporting nations in response to rising demand and high energy prices. 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 as the second month started, the prices started to drop. The price trend of Sodium Benzoate is significantly impacted by weak purchasing momentum and overflowing stocks. The availability of Sodium Benzoate in Germany increased due to several factors including manufacturers increased production and imports of Sodium Benzoate from other countries increased. Also, the prices of raw material sodium bicarbonate showcased decreased trajectory further supporting the depreciating trend. Also, due to seasonal changes, the merchants decide to destock their inventories to avoid damage. These units have been forced to sell Sodium benzoate at lower prices, but buyers are still waiting to see if prices will drop further. Import offers have increased this week, but they remain substantially below domestic prices. European buyers of Sodium benzoate are delaying restocking due to a lack of end-user demand, and there are downbeat price expectations.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Sodium Benzoate market witnessed an abating price trajectory in the North American region. Prices were witnessed to contract throughout Q1 2023 because of weak domestic demand. The fact that domestic retailers had ample inventories among themselves also influenced the market scenario negatively. The slowing Sodium Benzoate market, brought on by falling feed Benzoic Acid prices, also affected the production cost. At the end of the first quarter, Sodium Benzoate values were accessed at USD 1400/MT CFR New year with an average quarterly declination of 5.17%. Additionally, the low and consolidated Freight and shipping cost further supported the negative trajectory. Oversupply, decreased demand, and moderate economic activity have all been cited as reasons for the drop in shipping and freight costs.
APAC
The price of Sodium Benzoate drastically decreased over the first quarter of 2023 in the APAC area 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 1280/MT FOB-Shanghai, with an average quarterly decline of 2.38%. The downstream market demand was widespread, and the price of Sodium Benzoate was low and stable. Comprehensive estimates indicate that weak consolidation operations eventually dominated the sodium benzoate price trajectory, depending on downstream market demand. Additionally, prices for the raw material benzoic acid were stabilized, sustaining the downward trend.
Europe
The market for Sodium Benzoate in the European region experienced a declining price trajectory in the first quarter of 2023. Due to sluggish domestic demand, prices were projected to decline throughout Q1 2023. The abundance of inventory held by domestic retailers among themselves also had a negative impact on the market situation. The market for Sodium benzoate was slowing down because of dropping feed benzoic acid prices, which also had an impact on production costs. Sodium Benzoate values were found at USD 1350/MT CFR Hamburg at the end of the first quarter, with an average quarterly decline of 4.94%. The low and consolidated goods and shipping costs also contributed to the downward trajectory. The decline in transportation and freight costs has been attributed to several factors, including excess supply, declining demand, and modest economic activity.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a decline in market sentiment for Sodium Benzoate in North America because of poor offtakes in downstream industries such as the production of food and drink and pharmaceuticals. Due to the Chinese holiday known as Golden Week, imports were restricted during the first week of October. Even though demand-related offtakes in the end-user sectors remained on the low side throughout the quarter, the domestic suppliers were able to meet the total demand thanks to their large inventories. For most of the quarter, weather issues, Covid lockdowns in China, and unrest in Ukraine brought on by Russia put supply chains in danger. Prices for Sodium Benzoate were estimated in December to be around USD 1650/MT for Sodium Benzoate for CFR New York towards the end of the fourth quarter of 2022.
APAC
The Asia Pacific Sodium Benzoate market showed a decline in market sentiments in the fourth quarter of 2022. Due to factories being closed for the Golden Week, orders for China's industry that produces Sodium Benzoate steadily decreased during the first week of October. Following a one-week break, Chinese traders faced a range of contradicting signals, making it challenging for the market to catch up to the moderate growth seen in various downstream industries during the first half of Q4. Large inventories allowed domestic producers and suppliers to meet the demand for the whole quarter. Additionally, supporting the drop in the product's price was the stable demand. Prices for Sodium Benzoate were estimated in December to be around USD 1380/MT for FOB-Shanghai towards the end of the fourth quarter of 2022.
Europe
Throughout the fourth quarter of 2022, the European market for Sodium Benzoate continued to decline. Demand in Germany remained on the weaker side throughout the quarter, which made 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. However, the COVID-19 cases, the conditions in Russia and Ukraine, and all other factors continued to have a negative impact on output. In December, the cost of Sodium Benzoate for CFR Hamburg was estimated to be around USD 1580/MT.
For the Quarter Ending September 2022
North America
The third quarter of 2022 saw a decline in market sentiment for Sodium Benzoate in North America because of poor offtakes in downstream industries such as the production of food and drink and pharmaceuticals. The last week of July saw a considerable increase in the supply of Sodium Benzoate across China due to the return of destocking in the country's commercial centers. Due to the product's wide availability in the local market, prices have steadily reduced over the past quarter. The largest importer of sodium benzoate from China's domestic market is the United States. Prices for sodium benzoate were estimated in September to be around USD 2745/MT for CFR New York toward the end of the third quarter of 2022.
APAC
The Asia Pacific Sodium Benzoate market showed varying market sentiments in the third quarter of 2022. Destocking in the last week of July helped to effectively support the delivery of the product in both domestic and international markets in the first half of this quarter. This resulted in low freight costs as well as supply and port bottlenecks, which further supported the stability in the prices of the product. China is the world's top producer of food additives. Due to a rise in domestic market stocks, prices fell in the most recent quarter. Additionally, supporting the drop in the product's price was the stable demand. Towards the end of the Q3 of 2022, the prices for Sodium Benzoate were assessed at around USD 2170/MT for FOB Shanghai in September.
Europe
Throughout the third quarter of 2022, the European market for Sodium Benzoate continued to fluctuate. Due to a rise in demand from downstream businesses, such as the food and beverage sectors, prices were slightly raised in the first month of this quarter. However, prices started to decline in the second month of the quarter and kept going until the third month. The fall in price was brought on by the local merchants' ability to meet client demand with enough inventory. A third factor supporting the product's price drop was the decline in demand from the domestic market. In September, the cost of Sodium Benzoate for CFR Hamburg was estimated to be around USD 3175/MT toward the end of Q3 of 2022.
For the Quarter Ending June 2022
North America
On the back of the consistent offtakes in the downstream industries, such as food and beverage manufacturing and pharmaceuticals, the Sodium Benzoate market in North America showcased favorable sentiments in the second quarter of 2022. The return of COVID -19 in China's commercial hubs during the last week of April significantly hampered the supply of Sodium Benzoate across the country at a time when the US economy was already struggling with rising inflation labor shortages, and supply constraints. The high prices of food additives and raw materials due to the geopolitical unrest in Russia and Ukraine and the extremely variable nature of oil prices worried domestic traders and buyers throughout the quarter.
APAC
In the second quarter of 2022, the Asia Pacific Sodium Benzoate market displayed inconsistent sentiments. Since China is the top producer of food additives globally, the covid outbreak in the final week of April effectively delayed the delivery of the product in both the local and international markets, resulting in rising freight costs and supply and port bottlenecks. In terms of demand, China's end-user food and beverage sector experienced robust offtakes the entire quarter. Supply chains were heavily impacted by the "not so useful" Zero tolerance policy, which slowed down the manufacturing and shipment of everything from commodities to essential items. The disappointing outcomes showed how much China's economy has slowed due to sporadic lockdowns in some of the key economic centers of the country. Restrictions on transportation and logistical networks hampered product distribution across the country and to significant foreign shipping ports.
Europe
The Sodium Benzoate market in Europe remained positive throughout the second quarter of 2022. The food and beverage business is growing at a rapid rate in Europe, producing foods that are safe, wholesome, and competitive on a global scale. The crisis in Russia and Ukraine made it more difficult for exporting countries to conduct business while also increasing transportation costs and obstructing the movement of goods into Europe. The entire quarter saw high offtakes in end-user industries' demand since suppliers had enough inventory to satisfy all domestic demand.
For the Quarter Ending March 2022
North America
Prices of Sodium Benzoate soared in the North American market during the 1st quarter of 2022, on the back of firm downstream demand and increased upstream cost. The consumption of Sodium Benzoate increased from food, cosmetics, and personal care industries, which eventually propelled its prices. Besides, the enhanced upstream cost, escalated prices of feedstock Benzoic Acid, further added to the already augmented sodium Benzoate prices. Furthermore, the skyrocketed crude oil prices, intensified freight charges, labour shortage, and port congestions amidst Russia-Ukraine conflict, exacerbated the price hike of Sodium Benzoate. Conclusively, the evaluated prices of Sodium Benzoate in the USA at CFR New York were USD 2590/MT during January, which inclined to USD 2625/MT in February.
Asia-Pacific
The Asia-Pacific region witnessed an upsurge in the prices of Sodium Benzoate during the first quarter of 2022, backed by strong demand from end-user industries and enhanced feedstock prices. Due to the population growth, offtakes of Sodium Benzoate increased from food and cosmetics industry, which resulted in price hike of Sodium Benzoate in the domestic market. In addition, the continued conflict between Russia and Ukraine inclined the crude oil prices and freight charges which drove the Sodium benzoate prices upwards. In India, the prices of Sodium Benzoate USP assembled at INR 188000/MT (USD2451.24/MT) in March. Likewise, In China, the prices of Sodium Benzoate settled at USD 1670/MT FOB Qingdao in March.
Europe
The European market mimicked the pricing trend of North America and Asia-Pacific and showcased an upward trend for Sodium Benzoate during Q1 of 2022. The prime factors which caused the price surge were robust demand from several downstream industries and escalated Benzoic Acid Prices. The demand for Sodium Benzoate increased from the food and beverage industry due to the growing need for packaged and processed food in the country. Furthermore, the augmented crude oil prices and freight charges owing to Russia-Ukraine conflict, fuelled the prices value of Sodium Benzoate in the domestic market. Hence, in Germany, the assessed prices of Sodium Benzoate were USD 1824/MT during January, which kept on increasing till March.
For the Quarter Ending December 2021
Asia
During the fourth quarter of 2021, the pricing trend of Sodium Benzoate remained stagnant in the Asian Pacific region. In China, Sodium Benzoate prices showcased slight fluctuations in the domestic market and settled at USD 1405 per MT in December ending. The increased prices of upstream Benzoic acid, along with high energy cost, container shortages, and soaring freight charges, are some of the factors that have supported the price trend of Sodium Benzoate in the country. In the Indian domestic market, Ex-Kolkata prices of Sodium Benzoate were assessed at USD 2087.65 per MT in December. In India spiraling crude oil futures and supply disruptions backed by sky-high freight costs resulted in the increased prices of the product in Q4. In terms of demand, offtakes remained firm throughout the quarter.
Europe
In Europe, the market trend of Sodium Benzoate demonstrated raised sentiments as it mimicked the pricing trend of other regions due to several factors in Q4 2021. A hike in demand for Sodium Benzoate from the downstream food and beverage industry was observed in quarter 4. The exorbitant freight charges, prolonged port congestion, and increased raw material Benzoic acid prices ramped up the market sentiments of Sodium Benzoate in the region. This market disruption was further supported by the supply constraints, including container shortages, labor shortages, continued on and off COVID-19 restrictions across port regions, and congestion at ports.
For the Quarter Ending September 2021
North America
In North America, Sodium Benzoate prices witnessed an exponential rise during the third quarter of 2021. Demand for Sodium Benzoate remained firm from the food industry supported by high use of quick snack meal during this timeframe. Despite the ample supply of Sodium Benzoate to cope up with the regional demand its prices soared because of the global inflation in the upstream prices as an impact of Ida hurricane that made landfall in the Gulf Coast of US in August end. Logistic issues cause by the hurricane further added the pressure on the Sodium Benzoate market in Q3.
Asia
In Asia, Sodium Benzoate market remained bullish during the third quarter of 2021, due to the sturdy offtakes from the downstream sector and tight fundamentals that kept the price trend high during this period. In India, prices of Sodium Benzoate witnessed a steep climb backed by the crippled import activities and strong demand from the food and pharmaceuticals industries. Moreover, hike in the key feedstock values also influenced the prices of Sodium Benzoate. Additionally, high freight charges and constraint availability of shipping containers also sent ripples to the prices of Sodium Benzoate in this quarter. Thus, prices of Sodium Benzoate rose effectively since July and settled around USD 2066.74 per MT for EX-Mumbai in September.
Europe
In Europe, Sodium Benzoate market mirrored the pricing trend of other regions during the third quarter of 2021. The demand outlook for Sodium Benzoate remained stable across the European region showcasing an uprise in the pricing trend. Besides, increment in the feedstock Benzoic Acid values influenced Sodium Benzoate prices in this quarter. In addition, high freight charges and tight supplies of feedstock due to import delays also led to the inflation in the values of Sodium Benzoate in Q3.
For the Quarter Ending June 2021
North America
North American food preservative segment remained stable during this quarter, backed by firm offtakes from the downstream end users. Food preservative sector of USA usually remained stable, due to strong market movement and the extensive use of preservatives in the country. However, despite of this stability, price of Sodium Benzoate witnessed a marginal hike during this timeframe, due to rise in feedstock Benzoic Acid prices. The shortage of feedstock Benzoic Acid was supported by prolonged lower inventories level, while manufacturers filled their back orders.
Asia
Sodium Benzoate prices remained volatile during this quarter across APAC region. In China, prices of Sodium Benzoate declined effectively in April, following a steep fall in feedstock Benzoic Acid in the country. After this steep decline, prices fluctuated in a narrow range, due to feeble demand from the domestic and global market. Meanwhile in India, prices fell effectively in May, influenced by dented demand fundamentals after the second wave of pandemic in the country. However, prices rebounded in June, under the optimism of improvement overall market scenario, after effective decline in new pandemic cases in the country and ease in movement restrictions in several states. Thus, prices of Sodium Benzoate eventually settled at USD 1970/MT during June in India.
Europe
European market witnessed stable demand for Sodium Benzoate across the region, backed by consistent offtakes from the downstream sectors. However, rising values of feedstock Benzoic Acid caused prices of Potassium Benzoate to rise effectively. In addition, demand from the regional feed additive segment also supported the price hike in several preservative products including Potassium Benzoate during this timeframe. In addition, market uncertainties due to pandemic also increased the demand for preservatives, as manufacturers focussed to increase their product shelf life. However, due to strict government policies regarding food preservatives, this segment always remains volatile in Europe.
For the Quarter Ending March 2021
North America
Preservative segment of North America reported stable performance throughout the quarter, as the demand from the packaged food sector remained high. However, due to several plant outages across the US gulf, supplies remained of the feedstock chemicals like Benzoic acid, that increased its prices marginally during Q1 2021. Meanwhile the prices of Sodium Benzoate fluctuated in a narrow range week over week, which overall can be termed as stable within the quarter. After freezing winter strike the US gulf coast, demand for packaging food increased due to uncertainties hovering around end users, thus manufacturers were using preservatives to enhance their product’s shelf life.
Asia
The Asian market encountered mixed sentiments, as the preservatives market is still a growing segment for several Asian countries like India. While, in the Chinese market, preservatives demand showed consistent growth with economic rebound. In India, price of Sodium Benzoate rose during February due to persistent material shortage after the Chinese Lunar New Year holidays, which later came down to normal after reaching ample availability in March. However, by the end of March traders started anticipating about the rise of Sodium Benzoate prices in the forthcoming month, as the COVID cases were surging rapidly. Price of Sodium Benzoate in the Indian Market hovered around USD 1533/MT during mid-March.
Europe
Europe had firm demand for Sodium Benzoate throughout the quarter, amidst slowdown caused by the second wave of COVID 19. Despite of halted trade activity across prime routes, traders managed to grab cargoes of Sodium benzoate as well as of feedstock Benzoic acid from the international market. However, offers were resolutely high due to fuming shipping rates and shortage of containers. Thus, Sodium Benzoate prices demonstrated a moderate rise during the quarter.
For the Quarter Ending December 2020
Asia
The Asian Sodium Benzoate market experienced a stable growth during the fourth quarter of 2020. Festive season along with winter, increased the consumption of multiple food items and deserts across the region, especially in India. That increased the demand of preservative Sodium Benzoate. Price of Sodium Benzoate in India slightly rose from USD 2020.5 per tonne (October 2020) to USD 2084.2 per tonne (December 2020). In expectations of increase in demand of cough syrup during winter across the region, the demand of Sodium Benzoate from the pharmaceuticals sector also increased respectively during Q4 2020.
North America
The North American packaged food market remained low initially during October, but the suppliers were optimistic regarding upcoming festivals like thanksgiving, Halloween, Christmas etc. The overall demand of Sodium Benzoate rose with these holidays due to increase in packaged food consumption during the fourth quarter. Meanwhile, Emerald Kalama chemicals registered their Kalaguard SB Sodium Benzoate under US EPA FIFRA (Fungicide Federal Insecticide, Fungicide and Rodenticide Act), which will make this product available in the US for industrial as well as for home applications. This product will be distributed by Uninar in the US market.
Europe
In Europe, Sodium Benzoate is widely utilised in preservation of animal feed, and the overall demand of Sodium Benzoate remained low across the region during Q4 2020 due to pandemic-induced slowdown. EU compound feed production dropped across the region due to the spread of animal diseases like ‘’African swine fever’’ in Germany. This remained a restraining factor for the regional Sodium Benzoate market. In addition, new strain of COVID-19 indirectly impacted the feed production market of Europe.
