For the Quarter Ending December 2022
North America
The dynamics of the Sorbitol market in North America fluctuated throughout the fourth quarter. Prices decreased in the first month of the quarter as a result of a decline in demand from downstream industries, including the pharmaceuticals sector. In the second half of the quarter, prices increased because of the local market's continuing expansion of the food and beverage sectors. The local market saw an increase in demand for the product as people's concerns about their health grew. The key factors affecting market sentiment become confectioneries and low-calorie diet soda. The price of Sorbitol in the local market was impacted proportionally by the increased trend in feedstock and sugarcane prices as well. Toward the end of the quarter, the prices were assessed around USD 930/MT for CFR New York in December.
Asia Pacific
Conflicting views on Sorbitol pricing emerged in the Asia-Pacific market during the fourth quarter of 2022. Demand for downstream industries was delayed because of sanctions in countries like China, Taiwan, and India. The local market's sentiments continued to be driven by the pharmaceutical industry's activity. The cost of producing Sorbitol in the Asia-Pacific region decreased as a result of stable domestic feedstock, corn, and sugarcane prices. It was challenging to move feed between the source and producer because of the backed-up cargo and crowded ports. Toward the end of the quarter, the prices were assessed around USD 680/MT for FOB Le Havre in December.
Europe
Sorbitol market sentiments in Europe varied greatly in the fourth quarter of 2022 because of the local market's high feedstock corn and sugarcane costs. Due to the stagnant demand from downstream feeds, bakeries, and drinks, the area market saw a high operating rate. Natural gas was also expensive, which raised the price of production and feedstock. Because of growing natural gas prices and supply problems, producing Sorbitol in the household is now more expensive. Strong consumer demand for low-calorie items has an impact on how Sorbitol is viewed in the local market. Toward the end of the quarter, the prices were assessed around USD 815/MT for FOB Le Havre in December.
For the Quarter Ending September 2022
North America
In the North American region, the third quarter of 2022 saw a little change in the market dynamics for Sorbitol. Due to a drop in demand from downstream industries, such as the pharmaceuticals sector, prices were reduced in the first month of the first quarter. The food and beverage sectors' continued growth in the local market continued to boost prices in the second half of the third quarter. The public's growing concern for their health increased demand for the product in the local market. Confectionaries and low-calorie diet soda become the main variables influencing market sentiment. Additionally, the prices of feedstock and sugarcane continued to trend upward, having a proportional impact on the pricing of Sorbitol in the local market. Toward the end of the quarter, the prices were assessed around USD 967/MT for CFR New York in September.
Asia Pacific
During the third quarter of 2022, Sorbitol pricing generated conflicting opinions in the Asia-Pacific market. Sanctions caused delayed downstream industry demand in nations including China, Taiwan, and India. The pharmaceutical industry continued to be active, which continued to drive market sentiments in the local market. Additionally, the domestic market's feedstock, corn, and sugarcane prices remained unchanged, reducing Sorbitol's production costs in Asia-Pacific. Due to port congestion and piled-up cargo, the feed transfer between the supplier and producer was difficult. Toward the end of the third quarter, the prices were assessed around USD 680/MT for FOB Le Havre in September.
Europe
In the third quarter of 2022, Sorbitol market sentiments in Europe varied significantly due to high feedstock corn and sugarcane prices in the local market. The regional market experienced a high operational rate because of the stagnating demand from downstream feeds, bakeries, and beverages. Additionally, the cost of natural gas was high, which increased the cost of production and the cost of feedstock. The cost of producing Sorbitol in the domestic market has also increased as a result of rising natural gas prices and supply disruptions. Demand for low-calorie foods is strong, which affects how Sorbitol is perceived in the local market. Toward the end of the third quarter, the prices were assessed around USD 854/MT for FOB Le Havre in September.
For the Quarter Ending June 2022
North America
Sorbitol's market dynamics remained positive throughout the second quarter in the North American region. The prices were kept driven by the continuously developing food and beverages industries in the regional market. The rising concern regarding health among the public elevated the demand for the product in the regional market. Low-calorie diet coke and confectionaries become the key factors governing the market sentiments. Furthermore, the feedstock and sugarcane prices also remained on the upper edge, proportionally impacting the prices of Sorbitol in the regional market. Due to a natural sweetener with fewer ill effects, the demand for Sorbitol was elevated throughout the second quarter in the North American region. Furthermore, the cosmetics and personal care sectors remained active in governing the price dynamics of Sorbitol in the regional market.
Asia Pacific
Mixed sentiments about Sorbitol prices were observed in the Asia-Pacific market during the second quarter of 2022. Due to sanctions, countries like China, Taiwan, and India showcased slow demand from downstream sectors. Covid curbs and strict lockdown halted Sorbitol's operational rate, leading to prices declining during mid-quarter. Pharmaceutical sectors remained active, which kept driving the market sentiments in the regional market. Furthermore, the feedstock, corn, and sugarcane prices were also static in the domestic market leading to less production cost of Sorbitol in the Asia-Pacific region. The feed transportation between the supplier and manufacturer was rough as the ports were constrained and cargos were piled up.
Europe
In the second quarter of 2022, the market sentiments of Sorbitol in the European market remained firm owing to high feedstock corn and sugarcane prices in the regional market. The demand from downstream feeds, bakeries, and beverages remained stagnant, leading to a high operational rate in the regional market. Also, the natural gas prices were high leading to high production costs and feedstock prices. Furthermore, the hiked prices of natural gas and supply disruption have forced the manufacturers to increase the production cost of Sorbitol in the domestic market. Low-calorie food items are high in demand governing the market sentiments of Sorbitol in the regional market.
For the Quarter Ending March 2022
In the first quarter of 2022, market sentiments of Sorbitol followed uptrend in the North America region. Owing to the increase in the prices of feed corn and sugarcane in the domestic market the prices of Sorbitol soared along with strong demand from food services sectors. The escalated prices of feed along with increased energy cost have resulted in high production margin of Sorbitol in the domestic market. Furthermore, in the North American region, the strong demand of low-calorie food and beverages in addition to ready to eat-food items became the driving force of market sentiments of Sorbitol. Sorbitol prices in the USA surged by nearly 6% in the quarter ending March 2022.
Market sentiments of Sorbitol witnessed a miscellaneous sentiment throughout the first quarter of 2022. In China, the prices were quoted as USD 1550/ton, FOB Shanghai, in the month of January 2022. The demand for Sorbitol observed further surge towards the end of quarter because of high feedstock prices and rise in the Omicron infections in China. These facets increased the demand from downstream packed food and pharmaceutical sector, forcing the manufactures to increase the production rate of Sorbitol in the regional market. Furthermore, the demand from cosmetics and personal healthcare sectors also contributed toward the growth of the market sentiments of Sorbitol in the Asia-Pacific region.
In the first quarter of 2022, market sentiments of Sorbitol in the European domestic market remained strong owing to high prices of feed corn and sugarcane. The political stress between Russia and Ukraine escalated the prices of all food grain commodities influencing the prices of Sorbitol. Furthermore, the rise in prices of natural gas along with supply disruptions forced manufacturers to increase the production cost of Sorbitol in the domestic market. Firm demand from downstream sectors that is food and beverages sector governed the rising market sentiments of Sorbitol. The price quotations were observed as ranging from USD 1745/ton in the month of January and USD 1798/ton, Germany towards the quarter end.
