For the Quarter Ending December 2023
The Sodium Methyl Paraben market in the North America region experienced significant fluctuations in the fourth quarter of 2023, influenced by various factors that affected both market dynamics and pricing. At the onset of October, a notable surge in demand from the downstream sector, driven by diverse end-user industries, resulted in a tightening of supply and subsequent price increases. This demand spike, coupled with rising input costs—particularly for raw materials like Methanol—further contributed to the upward trend in prices.
The economic situation in the United States also played a pivotal role in shaping market sentiments during this period. Inflationary pressures and escalating energy prices in the U.S. impacted the Sodium Methyl Paraben market. However, towards the end of October, prices began to depreciate, concluding the fourth quarter on a downward note. The USA, being an importer, followed suit in this price decline. Key Chinese provinces, significant players in the Sodium Methyl Paraben market, experienced a decline in prices, which had a ripple effect on overall pricing in the USA. Several factors, including reduced international demand leading to lower export prices, contributed to this decline. Moreover, the U.S. Sodium Methyl Paraben market faced a price reduction due to excess inventory among suppliers, highlighting challenges in effectively managing stock.
Adding complexity to the situation were upstream factors, specifically the decline in Methanol prices. Throughout December, Methanol prices persistently dropped due to continuously decreased demand. Given Methanol's critical role as a raw material for Sodium Methyl Paraben production, its reduced prices intensified the broader downward trend in Sodium Methyl Paraben prices. The quarter ended with a Sodium Methyl Paraben price of USD 6720/MT CFR New York in the USA with an average quarterly decline of 3.15%.
The Sodium Methyl Paraben market in the APAC region encountered notable challenges in the fourth quarter of 2023, characterized by significant price fluctuations. Various factors influenced market dynamics during this period. Initially, at the onset of Q4, prices rose due to increased demand from end-users. Simultaneously, a decrease in production capacity among Methanol manufacturers resulted in constrained supplies and limited inventory. The market saw a surge in demand from end-users, driven by the "golden September" and "silver October" seasons. This sudden demand spike, fueled by concerns of shortages, led to increased production costs for Sodium Methyl Paraben. Manufacturers had to adjust their pricing strategies to maintain profitability. Additionally, strategic bulk buying by market players aiming to replenish their stocks contributed to the price surge.
However, as November unfolded, there was a notable decrease in Sodium Methyl Paraben demand, resulting in excess inventory and a subsequent price decline. This decrease was mainly attributed to the sluggish economic recovery in China, a key consumer of Sodium Methyl Paraben. Furthermore, the continuous decline in the prices of the raw material Methanol, used in Sodium Methyl Paraben production, further contributed to the overall decrease in prices. Supply constraints were also observed as manufacturers operated at reduced capacities.
In China, Sodium Methyl Paraben prices depreciated by an average of 0.48% quarterly. The domestic market faced an oversupply of local goods and sluggish trade orders, leading to a gradual decline in prices. Demand from downstream industries remained low to moderate, and suppliers maintained sufficient inventory to meet overall off-take requirements. Notably, there were no reported plant shutdowns during the quarter. China, as a significant market player, experienced a price decrease and a moderate demand outlook from downstream industries. The quarter concluded with a Sodium Methyl Paraben price of USD 6010/MT FOB Shanghai.
In the last quarter of 2023, the European Sodium Methyl Paraben market encountered various challenges that had an impact on pricing. Initially, as October commenced, there was a significant decrease in the demand for Sodium Methyl Paraben throughout the region, resulting in an excess of inventory. This surplus exerted pressure on the market, leading to a reduction in prices. The prevailing expectation was based on the anticipation of an uptick in inquiries from the downstream sector, prompting proactive accumulation of excipients. However, as December approached, the market took an unforeseen turn, compelling merchants to adjust their inventory levels in response to the evolving situation.
Additionally, the cost of raw materials, especially Methanol, decreased during this period, leading to lower production costs for Sodium Methyl Paraben manufacturers. These cost reductions were passed on to consumers, further contributing to the price decline. Notably, the Germany witnessed the most substantial price changes in the region, with its market remaining constrained, featuring moderate supply and demand.
In summary, the European Sodium Methyl Paraben market faced a challenging quarter, characterized by diminished demand and an oversupply that led to a decline in prices. The quarter ended with a Sodium Methyl Paraben price of USD 6800/MT CFR Hamburg in Germany with an average quarterly decline of 1.86%.
For the Quarter Ending September 2023
In the third quarter of 2023, there was a significant devaluation in the North American Sodium methyl paraben market. From July to September, the prices for Sodium methyl paraben delivered to CFR New York fell from $7615 per metric ton to $7410 per metric ton, marking the end of the quarter. These price drops clearly indicated a preference for lower prices, resulting in an average quarterly decrease of 2.23%. The global Sodium methyl paraben market faced an oversupply issue during this period, leading to a substantial decline in market values. Additionally, domestic traders strategically built up large inventories of Sodium methyl paraben. To minimize potential losses, these traders adopted a strategic approach by lowering their price quotes, further contributing to the overall decline in market prices. Despite a slight slowdown in inflation in the third quarter, primarily due to significant economic changes in the United States, market participants remained cautious because of the Federal Reserve's decision to raise interest rates. Furthermore, North American countries, which are the main importers of Sodium methyl paraben, closely followed the pricing trends observed in the Chinese market, where China serves as the primary exporter. Consequently, the third quarter of 2023 presents a unique opportunity for both businesses and consumers to take advantage of the reduced prices of Sodium methyl paraben in the North American market.
In the third quarter of 2023, the Sodium methyl paraben market saw a significant and positive transformation. Prices experienced a decline, going from $6090 per metric ton in July to $6100 per metric ton FOB Shanghai in September. This resulted in a noteworthy quarterly average decrease of 0.33%. This price shift was primarily due to substantial reductions in Sodium methyl paraben prices, driven by a significant drop in domestic demand from end-users. Additionally, the import of raw materials at competitive rates and in large quantities played a crucial role in shaping the market's direction. The backdrop to this price decrease was heavily influenced by economic conditions, particularly in China, the world's second-largest economy. China went through an economic slowdown that extended from the first half of 2023 into the second half, which cast a shadow over the beginning of the third quarter. This slowdown can be attributed to a combination of factors, including increased deflation, a rise in youth unemployment, and weakened foreign demand. Regarding manufacturing, Sodium methyl paraben production in China closely followed customer demand, adapting to the ever-changing market dynamics. During this period, a significant decline in demand was observed, not only in the domestic market but also in international markets. This synchronized decrease in demand further solidified the market dynamics in the third quarter.
In the third quarter of 2023, we witnessed a significant transformation in the pricing trends of Sodium methyl paraben. Prices went down from $7380 per metric ton in July to $7200 per metric ton CFR Hamburg by September, indicating a substantial decrease with an average quarterly decline of 2.12%. This change was primarily triggered by an oversupply of Sodium methyl paraben worldwide, which put downward pressure on its market value. To complicate matters, domestic traders chose to accumulate substantial inventories of Sodium methyl paraben. In order to proactively address this challenge and reduce potential losses, they strategically decided to reduce their price quotes, thus contributing to a broader devaluation of the market. Additionally, the European market, a major importer of Sodium methyl paraben, and China, a leading exporter, closely monitored the pricing trends in the Chinese market. Furthermore, consumer sentiments shifted due to rising inflation and increasing interest rates. Consequently, this price decline reflects the broader dynamics of the global market.
For the Quarter Ending June 2023
In the second quarter of 2023, the U.S. market for Sodium Methyl Paraben witnessed oscillation. The price was recorded at the end of Q2 2023, with an average quarterly inclination of 1.39%. In the first two months of Q2, the prices were recorded to be increasing stably in the wake of enhanced dynamics of supply and demand. Due to a significant surge in downstream demand and a decrease in merchant stockpiles. Moreover, as per the market experts, the trade from the exporting nation was noticeably strong during this month which further kept the market sentiments in the upward direction. Since the zero-tolerance policy was abandoned, trade between Asia and the US has increased. There was a mild shortage of sodium methylparaben on the shelves of domestic warehouses because of the increasing demand from end-user suppliers. Later, The US Sodium Methyl Paraben market was sluggish in June due to decreased demand from downstream industries. Weakening demand led to excess inventory, forcing suppliers to lower prices. The ongoing economic instability in the US and rising global inflation have also contributed to the decline in demand. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers.
The Sodium Methyl Paraben market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. The price was valued and accessed at the end of Q2 2023, representing an average quarterly incline of 1.99%. From the commencement of Q2 till the end of the second month of Q2, the Sodium Methyl Paraben market showed significant price inflation due to soaring domestic and international orders. The upward trend was largely driven by the increase in demand from end-use industries, including the food and beverage sectors. Also, 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 Methylparaben market to be strong. Inflation is also a factor in the rising prices of Sodium Methylparaben. The cost of raw materials, labor, and transportation have all increased in recent months, which has led to higher prices for Sodium Methylparaben. The cost of crude oil, which is a raw material used to make Sodium Methylparaben, has increased significantly in recent months. The cost of labor has also increased, as workers demand higher wages to offset the rising cost of living. The cost of transportation has also increased, as shipping rates have risen due to increased demand and decreased capacity. Later, in June Sodium methylparaben prices showed downward momentum in the Chinese market due to a weaker demand outlook. Demand for sodium methylparaben from downstream food & beverage, pharmaceutical, and textile industries declined as uncertain economic conditions and rising inflation halted trading processes. Inventories of sodium methylparaben increased as the company increased production rates. Ingredient suppliers offered methylparaben sodium cheaply in the spot market, thus reducing cost support. Sources from key market participants said buyers were shying away from large orders out of fear of further price declines.
In the second quarter of 2023, the Sodium Methyl Paraben in the European market saw fluctuations. At the termination of Q2 2023, the settlement price for Sodium Methyl Paraben was recorded with an average quarterly decline of 0.93%. With the inception of the second quarter, prices inflated backed by a supply-demand gap. Sodium methylparaben's price trajectory had a major upward trend. The market's fundamentals revealed that rising domestic demand was the main driver of higher prices for sodium methylparaben 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. Also, the surprise cut announcement for oil output by the OPEC+ members further influenced the market situation positively. Increase energy prices, hiked-up production costs, and raging shipment charges kept the market situation strong. Later in the third month of Q2, the supply of Sodium Methylparaben remained surplus as the production from major manufacturers remained high. The mills were forced to provide Sodium Methylparaben at lower prices for the consumption of left-off products. There is no restocking going on as the inventories are already full and firstly, they need to be consumed for further fluent trade of Sodium Methylparaben.
For the Quarter Ending March 2023
The price of Sodium Methylparaben in the North American region was generally declining in the first quarter of 2023. Prices were much lower at the beginning of the quarter due to weak domestic demand in Q1 2023. The high amount of inventory that domestic retailers held among themselves had a negative impact on the market situation. The decrease in production costs, which was brought on by weak demand from the downstream industry and an exporter excess, also influenced the prices of Sodium Methylparaben. With the demand also stabilizing, prices in the month of February stabilized on the positive side. Sodium Methylparaben values were found at USD 8290/MT CFR New York at the end of the first quarter, with an average quarterly decline of 0.38%.
In the first quarter of 2023, the Sodium Methylparaben market in the APAC region showed a generally steady increasing trend. Due to weak domestic demand during Q1 2023, prices were slightly lower at the start of the quarter. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. At the conclusion of the first quarter of 2023, Sodium Methylparaben values were discovered to be USD 5780/MT FOB Shanghai, with an average quarterly increase of 1.01%. Due to heightened demand from both domestic and foreign markets later in the month of February, prices rose dramatically. Also, increased production rates further added to the optimistic trend.
In the first quarter of 2023, the Sodium Methylparaben market in Europe had a general downward price trend. Due to weak domestic demand during Q1 2023, prices were significantly lower at the start of the quarter. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. The prices of Sodium Methylparaben were also impacted by the decline in production cost, which was a result of weak demand from the downstream industry and an exporter surplus. The prices in the month of February stabilized on the positive end, backed by stabilization in the demand outlook. Sodium Methylparaben values were found at USD 7920/MT CFR Hamburg at the end of the first quarter, with an average quarterly decline of 0.18%.
For the Quarter Ending December 2022
The US domestic market for Sodium Methyl Paraben had a drop in the fourth quarter of 2022. Due to declining demand from downstream businesses like the food additives sectors, prices decrease throughout the first half of the quarter, particularly during the first month. In addition, prices started to drop after the second month got underway due to a drop in demand and a sufficient amount of market inventory. Prices continued to fall in the second half, second month, and final month of the quarter because of traders' sustained demand and low stock levels. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8390/MT for CFR New York in December.
In the fourth quarter of 2022, the cost of Sodium Methyl Paraben in the Asia Pacific area showed a fluctuating pattern. The price of sodium methylparaben dropped in the domestic Chinese market as demand from the end-user food and beverage sectors was weak during the first half of the quarter but then stabilized during the second half. Due to the continually falling prices, the stock level on the domestic market fell even more in the second half of the quarter, particularly in the last month. Toward the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 5610/MT for FOB Shanghai in December.
In the fourth quarter of 2022, the domestic market for Sodium Methyl Paraben in Europe displayed an inconsistent pattern. Prices declined throughout the first month of the quarter and during the first half of the quarter as a result of decreased demand from downstream industries like the food additives sectors. Additionally, prices began to decline following the start of the second month as a result of a decline in demand and an adequate supply of market inventory. Due to traders' persistent demand and low stock levels, prices fell for the remainder of the quarter, including the second and final months. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 7965/MT for CFR Hamburg in December.
For the Quarter Ending September 2022
The US's Sodium Methyl Paraben market showed an erratic pattern in the third quarter of 2022. Prices grew throughout the first half of the quarter, especially during the first month, because of increasing demand from downstream industries, such as the food additives sector. Additionally, once the second month began, prices began to decline because of a decline in demand and an adequate supply of inventories in the market. Due to persistent demand from traders and low stocks, prices were raised again in the second half, second month, and final month of the quarter. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8860/MT for CFR New York in September.
The price of Sodium Methyl Paraben in the Asia Pacific region showed a varying tendency in the third quarter of 2022. As demand for the product from the end-user food and beverage sectors was low during the first half of the quarter but later steadied during the second half in China, the price of sodium methylparaben decreased in the domestic Chinese market. The stock level in the domestic market further declined in the second half of the quarter, especially in the last month, as a result of the prices consistently declining. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 5690/MT for FOB Shanghai in September.
In the third quarter of 2022, Europe's domestic market for Sodium Methyl Paraben displayed an inconsistent pattern. Due to rising demand from downstream businesses like the food additives sectors, prices increased during the first half of the quarter, particularly in the first month. In addition, prices started to drop after the second month got underway due to a drop in demand and enough market inventory. Prices increased once more in the second half, second, and final month of the quarter because of traders' sustained demand and low stock levels. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8170/MT for CFR Hamburg in September.
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.