Benzoic Acid Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Benzoic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Benzoic Acid Price Trend for the Q1 of 2024

Asia

The benzoic acid market in the APAC region witnessed a notable escalation in prices due to several factors. The shutdowns of major toluene plants, a key raw material for benzoic acid production, in China provinces, led to a reduced supply of raw materials. These shutdowns for maintenance purposes have disrupted manufacturing operations, tightening the market's supply-demand balance, and favoring the stabilization of benzoic acid prices after rough last quarters.

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Additionally, festivities such as the Chinese Lunar New Year further worsened the situation by causing further shutdowns and production disturbances. Despite the reduction in the operational rates, the downstream demand for the commodity inclined slowly throughout the quarter in both China and India, leading to an uptrend in the benzoic acid price trend.

Europe

In the European market, currency volatility, supported by the depreciation of European currency against the USD in the initial phase of 2024, followed by a continued decrease in demand for benzoic acid, has raised the export costs for benzoic acid. This, coupled with rising raw material expenses, notably toluene eventually fueled the benzoic acid prices in the northward direction.

Further, the region also witnessed an incline in the cost of crude oil and other raw materials required in the production of benzoic acid, raising the overall operation prices and, in turn, its pricing trajectory. However, as the quarter drew to an end, the market stumbled as the loss of trading volumes and sanctions on Russian imports exerted a negative influence on the market, resulting in the settling of benzoic acid prices on the lower end of the spectra.

North America

In the US market, both toluene and benzoic acid prices surged due to sustained demand in the first phase of Q1 of 2024. Geopolitical tensions, including negotiations for a ceasefire in Gaza and potential US military involvement in the Middle East, heightened concerns among oil traders, which was well reflected in the pricing trajectory of crude oil. The escalating attacks on vessels in the Red Sea compounded challenges for shipping routes already strained by conflicts and climate-related issues. This complex crisis affected crucial trade routes, impacting supply chains.

The downstream sector's strong demand outlook for Q1 2024 was reflected in domestic benzoic acid prices. Additionally, major toluene manufacturers, ExxonMobil Corporation and the Dow Chemical Company, faced force majeure due to subfreezing weather conditions, further constraining the supply chain and providing cost support to the benzoic acid market in the US region.

Analyst Insight

According to Procurement Resource, the price trend of Benzoic Acid is expected to attain a slow and gradual uptake in the next quarters as the global trading challenges and volatile demand from the downstream industries will dictate the movement of its prices.

Benzoic Acid Price Trend for the October - December of 2023

Asia

Benzoic Acid uses toluene as its feedstock material and is capaciously used for its antimicrobial properties by various food, pharma, and chemical industries majorly as a preservative. So, the benzoic acid price trend are very strongly influenced by the toluene market trend for the upstream behavior, while the demands from the consumption industries determine the sales pattern again influencing the overall market trend.

During the fourth quarter of the year 2023, the market trend for benzoic acid were observed to be depreciating for the majority of the period in the Asian markets. The downfall in the toluene prices affected the market trend as it eased down the upstream costs for benzoic acid.

Also, the existing inventory stocks were sufficient to cater to the existing downstream demands, and thus, the market offtakes also could not provide any substantial support to the price trend. So, the general market trend for benzoic acid were observed to be wavering at the lower side of the price curve during Q4’23.

Europe

The European chemical industry also mirrored the Asian market trend for benzoic acid throughout the discussed time span. Along with the degradation in the feedstock toluene prices, the dependency on Asian exports also resulted in these price patterns. The dull response of the consumer section also didn’t help the benzoic acid market much. Overall, weak market sentiments were observed for benzoic acid during the said time period.

North America

The benzoic acid market started slow in the American region as well at the beginning of the last quarter of the year 2023. However, the logistic disturbances at the end of the quarter did push the prices in support of the market trend.

Analyst Insight

According to Procurement Resource, the price trend for Benzoic Acid are likely to remain oscillating as the market sentiments are not expected to turn around soon since the overflowing inventories are dominating as market drivers.

Benzoic Acid Price Trend for the July-September of 2023

Asia

During the third quarter of 2023, the Asian economies performed better than the US, which strengthened their market dynamics and raised the cost of exports, thus resulting in a rise in the prices of benzoic acid. In addition to this, the increasing cost of toluene, which serves as the raw material in benzoic acid production, also helped in the upward movement of benzoic acid prices. Further, some of the manufacturing plants underwent sudden maintenance that caused disruption in the supply chains and thus helped in the growth of benzoic acid price trend.

Europe

The benzoic acid price analysis in the European countries shows that the trajectory remained more or less stable throughout the third quarter of 2023. The growth of benzoic acid was stunted by the accumulation of excess inventories of benzoic acid and more than the required influx of the product, while its demand showcased no significant improvement during this phase.

The plunging cost of raw materials also failed to support the market dynamics, due to which the benzoic acid price trend struggled to maintain its growth phase. Along with these persistent challenges, the imports from the majority of nations raised the competitiveness of the market, and as a result, the domestic traders had to reduce their price quotations, resulting in the sinking of the benzoic acid price graph.

North America

In North America, the surge in the prices of benzoic acid was a result of increasing demand for downstream products and an upward-driven cost of production. The level of inventories depleted significantly during this phase, and with the improving condition of the Asian economy, the imports from these countries became much more expensive and thus contributed positively to the rising benzoic acid price trend. On the other hand, inflation slowed down in North America, and the manufacturers and traders had a window to expand their production and improve the overall dynamics of the benzoic acid market.

Analyst Insight

According to Procurement Resource, the price trend for Benzoic Acid are expected to surge in the upcoming quarters in view of the positive movement of the demand scenario from the downstream industries.

Benzoic Acid Price Trend for the First Half of 2023

Asia

The Asia Pacific market of benzoic acid fluctuated in the first and second quarters of 2023. In the first quarter, the prices in the initial months dipped due to a strong supply of products and rising levels of inventories. But in the middle months, the trend inclined slightly with the improvement in the food industry due to the onset of the spring festival.

In the second quarter, the prices surged as they were supported by regular inquiries from the downstream industries and a spike in the numbers of domestic and international orders. In addition, constraints in production rates, market disruptions due to the ongoing crisis between Russia and Ukraine, and rising fuel costs supported the inclining price trend of benzoic acid.

Europe

The European market of benzoic acid showcased a mixed trend in the first two quarters of 2023. In the first quarter, crude oil prices declined along with the influx of supplies from Saudi Arabia and the US. The low demand dynamics and labour strikes in France further aided the declining prices of benzoic acid. In the second quarter, the trend surged initially due to the improving number of inquiries and ample supply of the product by traders to counter this demand.

The strengthening of the European currency over the dollar, decrease in inflation rates, and boost in domestic demand drove the benzoic acid prices in a northward direction. However, in the later months, the benzoic acid market suffered from a sliding number of orders, profit cuts by manufacturers, and delays in purchasing activities that ultimately led to the decline in the price trend of benzoic acid.

North America

In North America, the price trend of benzoic acid fluctuated on a month-on-month basis in the first two quarters of 2023. The initial decline in the first quarter was due to the weak economic conditions of the North American market and increasing pressure on crude oil reserves.

The oscillations continued in the second quarter too. In this quarter, the trend was supported by the rising demand from the end-user industries and low levels of inventories. But in the last month, prices of benzoic acid declined again due to the reduction in downstream activities and the hesitant nature of buyers as the market conditions declined in the region.

Analyst Insight

According to Procurement Resource, benzoic acid prices are estimated to decline in the upcoming quarters as the demand from the downstream industries seems to be receding, and the global market conditions also do not seem to be supporting the price trend for benzoic acid.

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