For the Quarter Ending December 2022
North American Market showcased a variable pricing sentiment for Sorbic Acid during the fourth Quarter of 2022. The prices declined with the start of October 2022 on the back of weak customer offtakes. Imports from China dropped considerably in October, weighed down by the declining cost of end products, a strong dollar, and the latest sign of inflation that had probably peaked. However, following mid-q4, supply chain disruption started to subside along with shipping charges, which somewhat supported the positive price trend for Sorbic Acid in the United States. With this, the prices for Sorbic Acid were recorded at USD 6455/MT CFR Los Angeles in November. Towards the end of the fourth quarter, the cost of Sorbic Acid significantly declined again within the domestic market as the new year holiday approached, and the demand from the downstream sector remained low.
APAC region, particularly China, witnessed mixed pricing sentiments for Sorbic Acid throughout the fourth quarter of 2022. Compared to the previous quarter, the prices of Sorbic Acid during October inclined at a moderate rate as consumer purchasing activity increased. Besides that, inflation thus decreased substantially compared to the previous month, i.e., September, even though it remained well above the upper boundary, which in turn affected the market sentiment of Sorbic Acid in the international market. Ease in supply-chain disruption and shipping charges did not keep changing the market tendency as the global inquiries remained dormant. Along with this, the prices of Sorbic Acid recorded during the mid-q4 were settled at USD 6300/MT FOB Shanghai. Towards the termination of q4, the prices declined again, which was supported by a decrease in demand and increasing COVID-19 cases within the region.
In the fourth quarter of 2022, the prices of Sorbic Acid fluctuate across Europe. The orders were dormant based on the contract, whereas the inventories remained on the higher side during the first half of the fourth quarter. Following November, the prices rose slightly and were demonstrated at USD 6598/MT CFR Hamburg in Germany. Inflation across Europe also dropped for the second consecutive month in December as surging energy prices cooled somewhat during the end of the year 2022. Demand declined 5.3% from the previous month, driven by a decrement in foreign orders, especially from exporting nations such as China. However, the thanksgiving holidays kept the inquiries weak and inventories on the higher side with the market participants.
For the Quarter Ending September 2022
North American Market showcased a declined pricing sentiments for Sorbic Acid during the third quarter of 2022. The prices of Sorbic Acid decreased due to weak buying activities witnessed in the domestic market from the consumers' side as the demand for end-user pharmaceuticals and preservatives was low, which led to product stockpiling. Furthermore, the trading momentum witnessed in the domestic market was on the lower side, which supported the price trend of Sorbic Acid in the US. Additionally, downstream derivatives demand was on the lower side in the month of August-mid of q3. Altogether, the prices for Sorbic Acid in the US settled at USD 6480/MT CFR Los Angeles.
In APAC, the prices of Sorbic Acid during the third quarter of 2022 witnessed a declined pricing sentiment. During July, the prices dropped significantly due to the weakened downstream demand from end-user enterprises. Furthermore, a similar market trend was followed in the month of August and September. Lower trading momentum owing to the less inquiry from the customer side led to stockpiling of shipments at the ports. Also, the stockpiled inventories feared the domestic merchants and propelled them to reduce prices to maintain their profit margins. Towards the termination of Q3, the prices locked for Sorbic acid were at USD 6175/MT FOB Shanghai.
In Europe, the price for Sorbic Acid mimics similar market sentiments as in the North American region and showcased a downward pricing trend throughout the third Quarter of 2022. Lower consumption and weaker inquiries from the customer side affected the price value of Sorbic Acid in Europe. Additionally, weaker Trading activity witnessed continuously in mid-Q3 resulted in the stockpiling of cargoes at the European ports, which kept the prices of Sorbic Acid on the lower side. Furthermore, towards the termination of Q3, the imbalanced supply-demand was observed, propelling domestic merchants to reduce their prices to destock the accumulated inventories. Overall, the prices settled for Sorbic Acid were at USD 6605/MT CFR Hamburg.
North American Market showcased a mixed pricing sentiments for Sorbic Acid during the second Quarter of 2022. The prices decreased due to weaker buying activities witnessed in domestic market from consumers side as the demand from end-user pharmaceutical, preservatives were low in United State region. Moreover, the price for Upstream feed Crotonaldehyde increases consistently, leading to the price hike of Sorbic Acid in mid of q2. Rising freight cost and transportation prices resulted in the price enhancement of Sorbic Acid pharmaceutical excipient in the US market owing to the imports that mainly occurs from Asia Pacific region. Additionally, supply disruption, labour shortage was another reason that surged Sorbic Acid price in overall Market. Towards the termination of second Quarter the prices recorded were raised stably and were settled at USD 6755/MT CFR Los Angeles.
The Market of APAC region witnessed an incremented state in the prices for Sorbic Acid during the second quarter of 2022.During April the prices went high due to the healthy downstream demand from end-user enterprise. Further towards the end of April the demand decline slightly with its moderate rate, leading to the price decrement of Sorbic acid in the market. Moreover, disruption in trading activities owing to delayed shipments with continual requirement results in steadily incremented cost of Sorbic Acid towards the ending of Q2. China being the major exporter to other regions, ease in the lockdown restriction encourages trading activities which augmented Sorbic acid price value as well as its demand in the market. Towards the termination of second Quarter the prices recorded were settled at USD 6485/MT FOB Shanghai.
The Price for Sorbic Acid mimics similar market sentiments as in North American region and showcased raising pricing trends during the second Quarter of 2022. Enhanced consumption in the domestic market primarily from pharmaceutical sector resulted in incremented prices. Furthermore, raised feed Crotonaldehyde prices caused the market of Sorbic Acid to spike high in domestic and regional market. Additionally, continuous transport restrictions resulting in heightened crude oil prices, logistic charges amid Russian-Ukraine geopolitical tension augmented the prices for Sorbic Acid in European region. Other than that, the cost surge owing to supply disruption, labour shortage and delayed shipments due to rerouting activities admits of the war. Towards the termination of second Quarter the prices recorded were raised stably and were settled at USD 6955/MT CFR Hamburg.