For the Quarter Ending June 2021
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.
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.
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
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.
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 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
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.
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.
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.