For the Quarter Ending June 2024
North America
During Q2 2024, the North American Sodium Benzoate market witnessed a complex interplay of global and local factors, showcasing the intricate nature of commodity markets. Despite an overall upward trend, the quarter began with a significant price drop, illustrating the market's volatility.
The market's trajectory was shaped by a combination of supply chain constraints, geopolitical tensions, and natural events, particularly the drought affecting the Panama Canal. These factors created logistical challenges that rippled through the industry, tightening supply and driving prices upward. The USA, being a key player in this market, experienced the most pronounced price fluctuations. Interestingly, while the quarter ended with prices 1% higher than at its midpoint, there was a 0.69% decrease compared to the previous quarter. This contradiction highlights the importance of considering different time frames when analyzing market trends. The final price of $ 1330 /MT USD suggests a resilient market despite the challenges.
The initial price drop at the start of Q2 reveals the delicate balance between supply and demand. Reduced downstream purchasing and high inventory levels temporarily outweighed the supply constraints, demonstrating how quickly market dynamics can shift. This situation underscores the importance of adaptive strategies for businesses operating in such volatile markets. It also highlights the need for a comprehensive understanding of both global and local factors when forecasting market trends in the chemical industry
APAC
In Q2 2024, the Sodium Benzoate market in the APAC region experienced an overall downward pricing environment with steady rise in the prices witnessed in the last month. The quarter was marked by several key factors influencing market prices. A sufficient inventory level among merchants, coupled with reduced downstream demand, played a significant role in maintaining price stability. The appreciated Chinese Yuan against other currencies made exports more expensive, adding to the upward pressure on prices.
However, this was balanced by lower feedstock costs and a muted performance in terminal market orders, which kept the overall production cost on the lower side. Additionally, declining oil futures resulted in reduced freight costs, further contributing to the stable pricing landscape. Focusing on China, the most significant price changes were observed. The pricing dynamics in China were heavily influenced by sufficient inventories and a lower demand outlook, resulting in a bearish market sentiment. Despite the appreciation of the Chinese Yuan, which elevated export prices, the market saw a stable trend overall, driven by a combination of lower production costs and ample supply.
Compared to the previous quarter, the pricing environment reflected a consistent trend with a slight 1% increase. As a result, the latest quarter-ending price for Sodium Benzoate FOB-Shanghai in China was USD 1175/MT, highlighting a stable sentiment in the market in terms of trading.
Europe
The Sodium Benzoate market in Europe during Q2 2024 faced a perfect storm of challenges, illustrating the interconnectedness of global markets and the far-reaching impacts of geopolitical events. The price surge, driven by rising production costs in major manufacturing hubs, was exacerbated by a series of supply chain disruptions.
These included the Panama Canal drought and the Houthi campaign against Israel, which significantly impacted global shipping routes. Germany emerged as a microcosm of the broader European market trends, with its price dynamics reflecting the complex interplay of global and local factors. The country's higher-than-expected inflation rate, combined with port congestion and container imbalances, created a volatile pricing environment. The depreciation of the US dollar added another layer of complexity, increasing import costs and further fueling inflationary pressures.
Despite some price fluctuations witnessed in the beginning of the quarter, the market demonstrated resilience, with prices in Germany closing at USD 1290 /MT. This suggests that while the market faced significant headwinds, underlying demand remained strong enough to support price levels. The situation underscores the importance of diversified supply chains and the need for businesses to develop strategies to mitigate the impacts of global disruptions on local markets.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Sodium benzoate in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Sodium benzoate in the US was USD 1345/MT CFR New York, showing an average quarterly increase of 0.82%.
The USA experienced rising prices due to various factors: production slowdowns, maintenance shutdowns, export restrictions, increased freight charges, and low inventories. Dependence on Chinese imports worsened due to disruptions in Chinese provinces during Lunar New Year, constraining supplies and raising prices. Post-Lunar New Year, global demand for Sodium benzoate surged, influenced by geopolitical tensions, trade disruptions, and increased container freight rates, causing another price hike in March. The US, a major importer, felt these effects, adjusting prices to remain competitive amid limited inventories and delayed supplies from exporting regions. Concerns over potential disruptions in the Mississippi River due to weather further intensified inquiries and pushed prices up.
The price of raw material, benzoic acid, also contributed to the hike. Despite a slight decrease at the start of Q1, the Sodium benzoate market eventually saw falling prices and unified sentiment, partly due to strategic actions by the USA influencing global prices. Factors like reduced raw material costs and declining manufacturing activity in the USA led to lower prices as downstream enterprises adjusted procurement strategies.
Asia Pacific
In the first quarter of 2024, Sodium benzoate prices in the Asia-Pacific (APAC) region remained relatively stable, with minor fluctuations in specific countries. In China, the latest quarter-ending price stood at USD 1200/MT FOB Shanghai, experiencing a modest quarterly decline of 0.19%.
Demand from industries like pharmaceuticals and food processing remained consistent, supporting prices and maintaining a positive market sentiment. However, in February, prices surged due to increased demand and low inventories caused by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further constrained availability. Post-holidays, a surge in purchasing domestically and internationally occurred, driven by consumer confidence and traders benefiting from the Chinese currency depreciation. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders anticipating shortages. Additionally, the rise in raw material benzoic acid prices contributed to Sodium benzoate price increases.
In March, sustained Chinese end-user demand led to higher Sodium benzoate prices, prompting increased production to meet domestic needs. However, despite overall stability, downward trends in Sodium benzoate prices, influenced by declining prices of crucial raw material benzoic acid, posed profitability threats to producers, especially those with elevated production costs led to significant decrease in the sodium benzoate prices at the commencement of Q1.
Europe
In Q1 2024, the pricing environment for Sodium benzoate in Europe saw a notable positive trend with increasing prices. By the quarter's end, the latest price for Sodium benzoate CFR Hamburg in Germany was recorded at USD 1310/MT CFR Hamburg with an average quarterly incline of 0.01%, reflecting market conditions and challenges in procurement and delivery.
Several factors drove these shifts, including heightened demand from downstream sectors, supply chain disruptions, and currency exchange rate fluctuations. Germany's market, heavily impacted by the Euro's depreciation against the dollar and shortages in exporting nations, experienced shipment delays and extended lead times for Sodium benzoate availability. Geopolitical tensions and trade interruptions added further complexity, influencing overall market sentiment. Rising container freight rates, especially affecting maritime transport-dependent industries, significantly contributed to price surges.
As a key importing hub, Germany's pricing closely correlated with major exporting countries, with currency devaluation amplifying challenges for traders and buyers facing higher USD-denominated import costs alongside increased raw material prices, notably for Benzoic acid. The temporary halt in mass production during China's Lunar New Year and Spring Festival exacerbated the situation, leading to heightened post-holiday order volumes and subsequent price spikes in predicting regions.
For the Quarter Ending December 2023
North America
The Sodium Benzoate market in the North American region experienced noteworthy transformations during the fourth quarter of 2023. Throughout the quarter, prices exhibited an overall increase, except for a substantial decrease in November. Specifically focusing on the USA market, there was an enhanced market scenario characterized by moderate to high supply and low to moderate demand. In terms of price trends, the Sodium Benzoate CFR New York price in the USA for this quarter stood at USD 1315/MT, with an average quarterly incline of 0.21%.
The heightened adoption of on-demand procurement by downstream businesses contributed to a sustained equilibrium between demand and supply. Simultaneously, escalating costs of crucial input materials, such as energy and raw materials, played a role in the overall price surge. Despite these challenges, businesses proactively replenished their inventories through substantial order placements, reinforcing the market.
However, prices saw a decline due to a global decrease in prices from major exporting countries, resulting in a reduction of Sodium Benzoate prices in the USA. This drop was further influenced by diminished international demand and surplus inventory among suppliers. Furthermore, economic uncertainties, including mounting inflation concerns and apprehensions about a potential recession, prompted cautious market sentiments and a contraction in the Purchasing Managers' Index (PMI) for the United States.
Asia Pacific
In the final quarter of 2023, the APAC region encountered various factors that impacted the pricing of Sodium Benzoate, resulting in noticeable fluctuations in prices. Throughout Q4, prices witnessed an overall increase. The latest price of Sodium Benzoate FOB-Shanghai in China for the current quarter stands at USD 1212/MT, with an average quarterly increase of 0.42%. Firstly, the market observed a surge in demand from end-users, fueled by factors such as seasonal festivities and heightened consumer spending during the holiday season. This increased demand exerted upward pressure on prices. Secondly, manufacturers of the raw material, Benzoic acid, operated at reduced capacities, leading to limited inventory and constrained supply. Additionally, strategic bulk ordering by market participants to replenish inventories further intensified the demand pressures. However, in November, prices experienced a decrease as local suppliers, grappling with excess inventory issues, chose to reduce margins and lower prices to clear their stocks. This strategic move aimed to make space for fresh inventories. Furthermore, China's market witnessed significant price cuts from Sodium Benzoate suppliers due to weak foreign demand. This was primarily linked to a decline in prices in the Benzoic acid market, the raw material for Sodium Benzoate. The drop in raw material Benzoic acid prices was exacerbated by continuous decreased demand in November.
Europe
In the final quarter of 2023, the European Sodium Benzoate market underwent several influences on pricing. While prices generally rose throughout Q4, there was a decline in the middle of the quarter, specifically in November. Overall, the European Sodium Benzoate market, notably in Germany, saw a price increase due to robust demand, supply limitations, and escalating production costs. Regarding price analysis, the current quarter's Sodium Benzoate price in Germany stands at USD 1310/MT CFR Hamburg, with an average quarterly increase of 1.28%. Primarily, heightened demand for Sodium Benzoate, fueled by the pharmaceutical and food industries, drove an overall increase in demand. This surge led to restocking activities and substantial orders, placing strain on supply chains and resulting in elevated prices. Additionally, the market grappled with increasing production and energy costs, further contributing to the upward price trend. Despite economic challenges in Germany, consumer confidence and spending remained robust, boosting the demand for Sodium Benzoate. Concerns over tensions in the Red Sea and the Suez Canal broadened the threat to ships passing through the Red Sea, causing delayed shipments and escalated freight charges. Furthermore, the country's manufacturing sector displayed signs of improvement, with a slower contraction and a moderate uptick in new orders. However, there was a decrease in inflation rates, suggesting a potential resolution to the prolonged high inflation that had impacted the region, leading to decreased prices in November. Abundant inventories prompted market players to reduce their quotations and narrow their margins to clear out stocks.
For the Quarter Ending September 2023
North America
During Q3 of 2023, the CFR New York prices for Sodium Benzoate experienced a rise, going from $1235 per metric ton to $1310 per metric ton. This increase contributed to a positive conclusion for the third quarter. The upward price movement indicated a clear preference for higher price levels, showing an average quarterly increase of 1.60%. Throughout the quarter, the domestic market for this nutraceutical saw an uptick, mainly due to the growing demand for Sodium Benzoate in various industries. Notably, limited to moderate inventory levels prompted sellers to gradually increase their prices each month, which played a significant role in supporting the optimistic price trend for Sodium Benzoate in the United States. Furthermore, the cost of imports rose in the latter part of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. Although inflation slowed down somewhat in the third quarter of 2023, driven by significant shifts in the US economy, market participants remained vigilant due to the Federal Reserve's decision to raise interest rates. Starting in July, there was a noticeable surge in warehousing costs, warehouse usage, and inventory expenses in the United States. Additionally, the prices of the raw material, Benzoic acid, in the Chinese export market rose due to increasing energy costs, further supporting the upward trend in Sodium Benzoate prices. Consequently, commodities like Sodium Benzoate saw price increases due to the rising expenses associated with inventory management and storage. In summary, it's likely that importing countries followed a trajectory similar to that of exporting countries during this period.
Asia Pacific
During the third quarter of 2023, Sodium Benzoate prices experienced a notable rise, going from $1130 per metric ton in July to $1200 per metric ton FOB Shanghai by September. This trend indicated a strong inclination towards higher prices, representing an average quarterly increase of 1.75%. China, the world's second-largest economy, faced a slower growth rate than initially anticipated in the first half of 2023, which persisted into the second half of the year, casting a negative shadow over the beginning of the third quarter. This was mainly due to worsening deflation, elevated youth unemployment, and weak foreign demand. Several factors contributed to the price hike of Sodium Benzoate in China during this quarter, with the most influential factor being the strengthening of the Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Concurrently, the prices of the raw material, Benzoic acid, in the Chinese market saw an increase driven by rising energy costs. Market dynamics revealed supply constraints as acid factories maintained low inventories. While maintenance companies gradually resumed production, demand did not show significant improvement, leading to substantial market pressure. The increased value of the Yuan and the weakening US dollar raised export costs, affecting both local and foreign markets. Market players, meeting the 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 factor contributing 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 Sodium Benzoate procurement, intensifying overall demand pressures during the holiday season.
Europe
In the third quarter of 2023, Sodium Benzoate costs exhibited a steady pattern, with a slight uptick from $1185 per metric ton in July to $1265 per metric ton CFR Hamburg in September. This trend indicated a noticeable price hike, resulting in an average quarterly increase of 1.81%. In July, as the situation stabilized and the economy started to recover, German suppliers of Sodium Benzoate began placing substantial orders to replenish their stocks and meet the rising nationwide demand. Nevertheless, experts in the industry observed that the German manufacturing sector still faced challenges at the beginning of the third quarter. In response to growing demand from downstream businesses, importing Sodium Benzoate from Asia, particularly China, remained a favorable option throughout the quarter. The devaluation of the Euro also played a significant role in driving up prices in Germany, as the strong US dollar compelled local enterprises to pay higher prices for imports from China. Economic factors, including high inflation and a challenging manufacturing environment in Germany, continued to impede growth, leading market investors to adopt a cautious "wait-and-see" approach. Additionally, the prices of the raw material, Benzoic acid, in the Chinese export market rose due to increasing energy costs, further supporting the upward trend in Sodium Benzoate prices. In summary, it's probable that importing countries experienced 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, 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.