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
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
The Sorbitol market sentiments in North America remained buoyed throughout the fourth quarter of 2021. This development is majorly attributed to the high-cost support from the raw materials, and the prices of upstream corn soared to the historic highs in the US domestic market, whereas in December the global food ricing index soared to the historic highs. The supply outlook eased significantly after the operational rates at the manufacturing sites increases post the hurricane season. Therefore, due to the cost support from the upstream coupled with the food security concerns against the adequate demand of Sorbitol. The producer's quotations for Sorbitol remained staggering upwards in the US domestic market in Q4 2021.
In the fourth quarter of 2021, the Sorbitol sentiments in the Asia Pacific region remained subdued throughout the quarter. The Sorbitol offers were stagnant in the first half of the quarter despite the stable demand in the wake of the economic activities in the Southeast Asian region. Whereas, the maize offers eased since the starting of the quarter and the demand remained stable led to the lower production margins. Whereas, in China, the operational rates at the manufacturing facilities increased after the power rationing was curbed in China. As a ripple effect of stable demand and lower production cost, the Ex-Ahemdabad discussion for Sorbitol 70% was settled at USD 597 per tonne, during the quarter ending in December.
During the fourth quarter of 2021, the Sorbitol sentiments in the European domestic market were remained strengthened throughout the fourth quarter of 2021. This change in the trend was induced by the limited availability of raw materials and the manufacturing cost amidst the high electricity charges in the European market. The energy crisis amidst the limited stocks of natural gas was prevailing its impact since the third quarter of 2021 led to curtailment in the production rates at several upstream facilities across Europe. As a ripple effect, the offers for Sorbitol remained buoyed throughout the fourth quarter of 2021.
