Potassium Sorbate Price Trend and Forecast

Regional Price Overview

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

Potassium Sorbate Price Trend for the Q1 of 2024

Asia

The Lunar New Year and Spring Festival season in China in February caused temporary economic slowdowns, affecting the overall dynamics of downstream chemical industries along with manufacturing and transportation sectors. However, as the market returned from the holiday season, heightened demand for potassium sorbate in China was intensified by the delays in shipments and production, impacting businesses reliant on Chinese suppliers and contributing to increased expenses in the US market.

Potassium Sorbate Price Chart

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The surge in the potassium sorbate price trend was further fueled by a rise in the spending appetite of not only domestic but also overseas players. Additionally, the carried forward supply chain disruptions, geopolitical tensions, and rising raw material costs from previous quarters, further prompted the traders and manufacturers to raise their quotations of potassium sorbate.

Europe

A surge in inquiries from downstream industries indicates a stable demand-supply outlook for potassium sorbate despite limited operating rates due to holiday season slowdowns. Ample availability of finished stocks ensures readiness for potential inquiries this month. The US market's resurgence, following the stabilization of federal reserve interest rates, positively influenced the potassium sorbate market's overseas purchases.

However, geopolitical tensions, especially in the Middle East, disrupted global shipping routes, impacting freight charges and supply chains of potassium sorbate. The persistent issues in the Red Sea further caused disturbances in worldwide trade routes, leading to significant changes in the trading strategies of European traders.

North America

In North America, increasing downstream purchasing activity for potassium sorbate prompted suppliers to prioritize restocking efforts to prevent potential shortages. The currency fluctuations, particularly the US dollar's appreciation against the Chinese Yuan during the early phase of the first quarter, further raised the profit margin of North American exporters. At the same time, the disruptions in key maritime routes, intensified by incidents in the Suez Canal, continued to impact the US-Europe Sea trade, causing heightened shipping costs, delayed shipments, and supply chain disruptions.

Globally, geopolitical disturbances, including Houthi rebels targeting vessels in the Red Sea, further led to freight price rises and extended transit times around Africa, affecting potassium sorbate delivery worldwide. The traders also prepared for potential manufacturing unit closures and labor shortages, which eventually widened the gap between the supply and demand sectors of the North American market during the first quarter of 2024.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Sorbate is expected to move northwards with the rise in the momentum of the downstream food and beverages sector and increasing trading challenges.

Potassium Sorbate Price Trend for the October - December of 2023

Asia

The onset of the holiday season in many of the Asian countries increased the appetite of consumers in these regions, which was well evident in the sudden uptick in the potassium sorbate price trend during the initial phase of the fourth quarter.

However, as many as 3,925 shipments of food export from India were refused at US ports in September and even in the last quarter, it did not show any relief as they did not match the expected quality of the US market. This hike in refusal rate of Indian and Chinese shipments caused troubles for the food industries and thus caused oscillations in the potassium sorbate prices.

Europe

The potassium sorbate price trend oscillated in the end quarter of 2023 on the back of fluctuating equilibria between supply and demand. The market failed to achieve stability further, due to the change in the export equation of the European countries. The potassium sorbate market registered substantial gains from the domestic consumer sector, but the overseas demand remained subdued as the ongoing Israel-Hamas war disrupted the Red Sea trade route, causing a fall in shipments leaving the European shores.

North America

As the winter holidays approached the US markets, the demand for packaged and processed foods increased in the domestic market which led to a surge in potassium sorbate price trend. Initially, in the end quarter of the year, the prices stumbled a little but in the last months, the inventories depleted at a quicker pace than anticipated by the traders and caused a hike in the potassium sorbate price trend. Further, excessive pressure came upon the manufacturers when the supply and cost of key raw materials declined, leading to a reduction in the production rates and an incline in the potassium sorbate price graph.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Sorbate are estimated to face some fluctuations as the downstream industries are still lukewarm in terms of their demand and the thin recovery of economy is not a much reliable factor on which the potassium sorbate price trajectory could be based.

Potassium Sorbate Price Trend for the July-September of 2023

Asia

The price trend of potassium sorbate witnessed a gradual fall as the sliding cost of production had a negative impact on the potassium sorbate prices. The consumers and downstream industries also showed lower interest in the potassium sorbate market as they struggled with the weak dynamics of the Asia Pacific industrial sector.

The extreme weather conditions played a significant role in keeping the trend of end-user industries in the red zone. In addition to this, the export of potassium sorbate from China witnessed a remarkable contraction. Further, the pressure of soaring inflation and rising rates of interest charged by the banking sector led to the southward movement of potassium sorbate price trend.

Europe

In the initial phase of the third quarter, the potassium sorbate price graph fell gradually during the first month, but the persistent poor performance of the major market segments resulted in a steep fall in the potassium sorbate price trend.

The most influencing factor in keeping the potassium sorbate price trend trajectory downwards was the poor demand from the downstream industries and a limited number of new inquiries and orders. The surge in the cost of energy production and gloomy economic conditions also had an adverse effect on the potassium sorbate prices, and thus, they also shared a share in keeping the potassium sorbate prices in the negative zone.

North America

During the third quarter, the potassium sorbate market trend bore a bearish trend on account of the feeble condition of the upstream market. Further, the performance of the end-user food and preservative industries also failed to support the trend of the potassium sorbate price graph. The domestic consumers also seemed to be hesitant in ordering bulk orders in view of the slow economic recovery that, at last resulted in the decline in the potassium sorbate price trend.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Sorbate are estimated to struggle in the upcoming months with the poor demand scenario and weak fundamentals of its feedstock market.

Potassium Sorbate Price Trend for the First Half of 2023

Asia

Potassium Sorbate prices declined steeply in the first quarter of 2023 as the market movement of downstream industries, such as food, pharmaceuticals, etc., slowed down and ultimately resulted in the fall of demand. In addition to this, the cost of feedstock materials also failed to provide the required support to the potassium sorbate market for improving its market dynamics, and thus, the price trend of potassium sorbate faced southwards.

In the second quarter, along with the sustaining problems of weak demand and low cost of feedstock materials, the stocks of inventories rose, which further caused to be a problem for the traders and led to the downward movement of the potassium sorbate price trend.

Europe

The European market witnessed a falling price trend of potassium sorbate in the first and second quarters of 2023 as the consumer demand from the downstream industries was weak. The rising level of inventories and fluctuating market dynamics continued to be a cause of worry for the manufacturers in both the first and second quarters of 2023.

The most significant drop was observed in the month of June due to the long-standing struggle of the potassium sorbate market with low procurement, high level of inventories, rising cost of energy, and shortage of labor, ultimately leading to the fall in the price trend of potassium sorbate.

North America

In North America, the price trend of potassium sorbate was negatively affected by the decline in orders from domestic purchasers, which caused the level of inventories to rise significantly in the first and second quarters of 2023. Additionally, the fall in trade activities and lowering of freight charges, diminished number of inquiries from international retailers exerted pressure on the potassium sorbate market and led to the fall in its price trajectory.

Analyst Insight

According to Procurement Resource, the price trend of Potassium Sorbate is estimated to depict a falling trajectory as the demand from end-user industries is not certain, and the level of inventories is also rising.

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