For the Quarter Ending June 2022
The US domestic market for Sodium Methylparaben showcased a positive trend during the second quarter of 2022. The import of Sodium Methyl Paraben into the US, which was already experiencing significant port congestion, was drastically made worse by the reappearance of COVID in China's commercial areas. Domestic traders and customers continued to express concerns about the high cost of food chemicals throughout the quarter due to various issues, such as the US's soaring inflation, the geopolitical unrest in Russia and Ukraine, and the wildly fluctuating nature of oil prices. The region's downstream food and confectionary industries continued to experience strong demand over time.
In the second quarter of 2022, the price of Sodium Methylparaben in the Asia Pacific region showcased a declining tendency. In the domestic Chinese market, the cost of sodium methylparaben dropped by 2.83 percent from April to June, while it dropped by 5.13 percent in the Indian market. Demand for the product from the end-user food and beverage sectors was low during the first half of the quarter but later stabilized during the second half in China. The supply of Sodium Methylparaben into and out of the country was significantly affected by an increase in COVID cases in China's major provinces, and the country's zero-COVID policy forced the ports to close causing port bottlenecks. Throughout the quarter, the tolerance policy persisted in disrupting supply and production. Additionally, the limitations made it incredibly challenging for goods to travel across the country and to crucial ports for international trade.
In the European region, the market for Sodium Methylparaben showcased a positive trend during the 2nd half of the quarter. Demand-wise, Offtakes in the end-user food and beverage industries remained firm over the quarter. Local merchants in the European market had abundant inventory to meet downstream demand. The conflict between Russia and Ukraine continued to drive up shipping costs and slow the flow of products into Europe, but it also made it more challenging for exporting nations to conduct business. A shortage of empty cargo containers and Russia's invasion of Ukraine severely disrupted global trade, further surging the cost of shipping goods from China to Europe.
For the Quarter Ending March 2022
Prices of Sodium Methyl Paraben dropped in the North American Market during the 1st quarter of 2022, on the back of weak downstream demand. Due to rising awareness over hazardous effects of Paraben on human health and skin, people were heard avoiding products containing Paraben in them, which consequently led to the decreased demand of Paraben from various end-user industries. Furthermore, owing to lower number of enquiries, the inventories remained full throughout the quarter, which resulted in price drop of Sodium Methyl Paraben. In USA, the prices of Sodium Methyl Paraben settled at USD 5080/MT CFR New York in the month of January, which continued the fall till March.
Asia-Pacific region witnessed a downfall in the prices of Sodium Methyl Paraben during the quarter 1 of 2022, backed by the fall in downstream demand. As the concerns regarding Paraben consumption increased during the considered period, offtakes of Sodium Methyl Paraben fell from the consumer end. Meanwhile, because of enhanced prevalence of Paraben-free products, more and more brands started manufacturing cosmetics without Paraben, which further decreased its consumption in end-user industries. Conclusively, the evaluated prices of Sodium Methyl Paraben IP at FOB JNPT were USD 6474/MT during the month of January, which showcased continuous fall till March.
In line with the trend of North America and Asia-Pacific region, prices of Sodium methyl Paraben fell in the European market during the 1st quarter of 2022, on account of decreased demand from end-user industries. As the consumer preferences grew in favor of Paraben-free products, the consumption of Sodium Methyl Paraben dropped in the downstream industries. Besides, insufficient offtake kept the inventories overflowing with supplies, which further declined the prices of Sodium Methyl Paraben throughout the quarter in Europe. In Germany, the prices of Sodium Methyl Paraben assembled at USD 4330/MT FD Hamburg in the month of January, which decreased continuously till March.