Sodium Benzoate Price Trend and Forecast

Sodium Benzoate Regional Price Overview

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

Sodium Benzoate Price Trend for the Q2 of 2024

Asia

In China, the market experienced downward pressure on prices due to a combination of oversupply and reduced domestic demand in the second quarter. After the initial stagnation as the quarter progressed, Chinese businesses engaged in destocking activities to clear existing inventories and make room for new stock. This oversupply scenario was exacerbated by logistical challenges and regulatory constraints affecting shipments.
 

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The reduced demand for sodium benzoate in China, potentially driven by seasonal changes, consumer preference shifts, or alterations in industrial production patterns, further contributed to the easing of prices. Additionally, planned plant shutdowns from late June to July for maintenance and other operational reasons led to a more aggressive reduction in existing inventories, particularly of heat-sensitive powdered Sodium Benzoate, reinforcing the downward price trend.

Europe

In Europe, similar to Asian countries, supply chain disruptions and high transportation costs influenced the sodium benzoate market. The region's reliance on imports from Asia meant that any logistical issues in China directly affected European prices. Therefore, the increased operational costs for shipping and the bottlenecks in global supply chains led European importers to adjust their prices upward to reflect these additional expenses.

Amid these market dynamics, there was a growing focus on sustainability within the sodium benzoate industry. Several sectors of the market, including regulators and industry leaders, explored eco-friendly substitutes and practices to mitigate the environmental impact of sodium benzoate production and usage, disrupting the supply-demand equilibria of the market.

North America

The severe congestion at major Chinese coastal ports, including record container handling at the Port of Shanghai, strained global supply chains, leading to increased shipping costs of sodium benzoate during Q2 of 2024. This congestion, compounded by seasonal fluctuations, geopolitical tensions, and container shortages, disrupted the flow of goods and raised transportation costs. In the US, economic signals also offered only limited support to the market with manufacturing contracting but the service sector expanding.

Despite this, the implementation of a General Rate Increase (GRI) by major shipping carriers raised shipping costs due to higher fuel prices, strong maritime transport demand, and increased operational expenses on China-US routes. These challenges were further compounded by supply chain bottlenecks, such as the Panama Canal drought and reduced vessel traffic, which intensified transportation cost pressures. As a result, US importers faced increased costs and delays, prompting them to raise prices of the commodity and seek alternative supply routes to mitigate the impact. Additionally, limited inventories abroad also contributed to the price hikes as importers struggled to secure sufficient supplies to meet demand.

Analyst Insight

According to Procurement Resource, the price trend of Sodium Benzoate is estimated to be move northwards in the forthcoming quarter under the influence of limited export from the Asian countries and rising global usage of the commodity.
 

Sodium Benzoate Price Trend for the Q1 of 2024

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Asia

Following its usual market behavior, the sodium benzoate market trend remained aligned with the market trend of its feedstock materials, sodium hydroxide (caustic soda) and benzoic acid, during the said period. Sodium benzoate prices remained tugged between various driving factors for the majority of the said period. The production and processing costs were inclined and upward driven as the crude oil prices soared in the international markets.

Preservatives, chemicals, and food industries offered bearish demands to counter these imbalances in the upstream outlook. As the offshore trade became difficult, considering the supply chain curtailments and other freight-related hurdles, the international orders, too, started diving down. Because of these reasons, the sodium benzoate prices wavered in the Asian market within very narrow boundaries.

Europe

The trade conditions in the European markets were really complicated for suppliers. As the Euro depreciated against the US Dollar, it caused a wave of inflation in the region. More damage was done by the Russia and Ukraine conflict. Ukraine attacked some major Russian refineries, which tumbled the Russian oil output by some 7% and thus raised the crude oil prices in the international markets as well since Russia is a prominent member of OPEC+. This did provide some positive cost support by pushing the price trend up. However, the piled-up inventories and dull demands countered the rising trajectory. Overall, conflicting trends were witnessed; as a result, the prices remained consolidated within a limited range.

North America

The North American sodium benzoate prices were no different than the other global markets, as the prices were observed to be oscillating here as well. The geopolitical tensions were constantly rallying up as the humanitarian crisis kept unfolding in Ghaza, and other heated conflict zones also kept erupting. These major events completely altered the trade dynamics in the international markets. The existing stockpiles were sufficient to cater to the domestic demands as the incoming queries and orders were very limited. Suppliers had a difficult time managing the crisis. Overall, mixed market sentiments were observed.

Analyst Insight

According to Procurement Resource, given the current supply and demand dynamics, the price trend is expected to remain steady in the next quarter, too.
 

Sodium Benzoate Price Trend for the October - December of 2023

Asia

Sodium Benzoate is a sodium salt of benzoic acid, so the market trend for sodium benzoate are very closely aligned with the market behavior of its feedstock compounds, sodium hydroxide (caustic soda) and benzoic acid. During the fourth quarter of the year 2023, the sodium benzoate prices were observed to be wavering for the majority of the period.

The Chinese market performed slightly better than the Indian market; however, because of the heightened inventory levels, the prices mostly oscillated at the lower end of the curve. Along with the dull cost support from the feedstock side, the dull market demands from the chemical, foods, and pharma industries also hindered the sodium benzoate market performance. So, with swift downward fluctuations, the general market trend for sodium benzoate were observed to be largely mixed throughout the said period.

Europe

The European sodium benzoate market trend were very similar to the Asian trend. The prices here, too, followed an uneven trajectory throughout the discussed period of Q4’23. The low swinging feedstock costs affected the production costs significantly, and then the dull demands from the downstream preservative industries further complicated the sodium benzoate market situation.

North America

The American market trend for sodium benzoate were not much different from its Asian and European counterparts. The prices wavered within a very narrow range as the supply and demand dynamics were largely playing out evenly for the said period. Overall, mild variations in the sodium benzoate price trend were observed during the said period.

Analyst Insight

According to Procurement Resource, the Sodium Benzoate price trend are likely to continue to waver in a similar manner in the coming months, given the market uncertainties and the current global economic scenario.
 

Sodium Benzoate Price Trend for the July - September of 2023

Asia

The sodium benzoate prices mostly wavered at the higher side of the price curve during the third quarter of the year 2023. The sodium benzoate price hikes were a direct result of the inclination in the feedstock toluene and naphthalene prices. Since production became costlier with expensive raw materials, the suppliers raised the market prices to maintain the profit margins.

The demands from the downstream chemical and cosmetics industries ran between moderate and high as the sodium benzoate’s demand as a potent preservative was high, especially from the foods, beverages, cosmetics, and personal care industries. Overall, inclining numbers were registered at the sodium benzoate price index throughout the three month span of Q3’23. An upward-inclined price graph was observed for sodium benzoate during the said time period.

Europe

The European sodium benzoate price trend almost replicated the Asian market trend during the third quarter of the year 2023. This was also reflective of the strong European dependence on Asian exports. Other than this, the market activities in Europe were also steadily recovering after the unforeseen economic turmoil owing to the Russian invasion of Ukraine. Since the sodium benzoate market registered steadily growing trend, positive market sentiments were observed during Q3’23.

North America

The American sodium benzoate market also mirrored the positive price patterns of its Asian and European counterparts. Despite the surrounding uncertainties, the sodium benzoate market performed fairly well in the US. With stable demands and unrestricted supplies, an overall supportive market outlook was witnessed throughout the said time.

Analyst Insight

According to Procurement Resource, the Sodium Benzoate market prices are likely to continue behaving in a similar manner going forward since the market attributes seem supportive of the current trend.
 

Sodium Benzoate Price Trend for the First Half of 2023

Asia

The market for sodium benzoate declined in the first and second quarters of 2023 in the Asia-Pacific region. The fall in the trend was much more significant in the later months of the second quarter as compared to the first quarter. In both quarters, the weak performance of domestic and international markets and the declining prices of feedstock materials affected the price trend. However, a slight incline was observed in the first two months of the second quarter when the demand for sodium benzoate from the food and beverage sector increased. These months were also supported by positive trading activities and higher costs of raw materials. But the trend could not be sustained in the region, and ultimately, consumer confidence in the market fell along with sodium benzoate prices.

Europe

In Europe, the sodium benzoate price trend declined throughout the first two quarters of 2023. The market dynamics were adversely affected by the rising stockpiles in the region due to weak demand from the downstream industries. The trend improved slightly in the initial phase of the second quarter due to increasing demand and energy production costs as OPEC+ announced cuts in oil outputs. But soon, the trend returned to its declining phase as consumers were unable to purchase the product amid soaring energy costs and declining market dynamics. The falling costs of raw materials, overflow of stocks, and increased number of imports contributed significantly to this fall in the price trend.

North America

The market of sodium benzoate in North America mimicked the trend seen in Europe and Asia Pacific regions. The prices first declined in the first quarter, then witnessed a slight jump, and ultimately declined again in the second quarter. The rise in the first few months of the first quarter was due to high demand from the end-user sector. But the declining trajectory of the price trend of sodium benzoate was due to the weak performance of downstream industries, a halt in the economic development of the region, and increasing fluctuations in the crude oil sector, which significantly impacted the sodium benzoate price trend.

Analyst Insight

According to Procurement Resource, the price of Sodium benzoate is estimated to depict an uncertain trend as the declining global economic conditions and reduced demand from the end-sector industries are expected to adversely affect the market.

Procurement Resource provides latest prices of Sodium Benzoate. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.