Sorbic Acid Price Trend and Forecast

Regional Market Overview

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

Sorbic Acid Price Trend for the Q1 of 2024

Asia

Sorbic acid prices were observed to be oscillating within a narrow range during the first quarter of the year 2024. In the Asian markets, particularly India and China, the supply and demand equations were quite stable during the given period. The price graph was witnessing bidirectional movements with some market drivers pushing the prices in the upward direction and some factors driving the market downhill.

Sorbic Acid Price Chart

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The upstream costs were inching up as the crude oil prices kept rising in the international market following the OPEC+ announcement of reduced oil outputs. So, this created an upstream cost pressure for suppliers. While on the other hand, the cosmetic and coating industries regularly reported falling demands for sorbic acid. This was primarily attributed to the lesser number of working days in the first quarter. The long holiday seasons during the New Year celebrations limited the required product quantities. Thus, with inclined production costs and declined demands, the price trend was majorly tugged during the said period.

Europe

Influenced by the confinement of the Asian market, the European sorbic acid market too exuded borderline stagnancy during the said time period. The market sentiments were largely muted. The suppliers struggled with continuously rising manufacturing costs and disturbed supply chains. With diminishing regional demands and restricted offshore trade, the local inventories started overflowing, which started creating downward pressure on the price trend again. Overall, a mixed market performance was witnessed with the price trajectory largely tilted downwards.

North America

The American sorbic acid price performance was not much different from its Asian and European counterparts. The price trend was observed to be fluctuating here as well. Although the downstream demands were very regular here, the price trajectory was driven by the rising upstream costs.

Major armed conflicts in the Middle East and Europe hurdled the global trade routes, and the shipping ways also started to get threatened by the sea pirates. Amidst all this, the upstream cost pressure kept mounting up, and thus, the prices inched up despite the downstream demands staying regular. Overall, varying price trajectories were witnessed.

Analyst Insight

According to Procurement Resource, the Sorbic Acid price trends are expected to remain oscillating in the near future. The market drivers suggest a limited range of variations going forward.

Sorbic Acid Price Trend for the October - December of 2023

Asia

Sorbic acid price trend are primarily influenced by the market patterns of its feedstock material, succinic anhydride. During the last quarter of the year 2023, sorbic acid prices were observed to be stuttering at the lower level of the curve for the entire period. The feedstock prices were unable to provide any substantial upstream cost support, and the market demands were also not sufficient to sail the market alone. Overall, plunging price trend were witnessed in Q4’23.

Europe

The European sorbic acid market trend were not much different from the Asian market. The prices were observed to be plummeting here as well. Since the Israel-Hamas war broke out, the offshore trade has been severely impacted. The transportation hurdles that occurred because of these geopolitical tensions heavily influenced the sorbic acid price trend during the given period. Since the depletion in exports created a supply surplus in the region, sorbic acid prices were observed to be plunging throughout the said period.

North America

The North American sorbic acid market trend were no different than its Asian and European counterparts. The prices were found to be dropping low on the price scale throughout the said period, given the dull market sentiments amid a challenging economic environment.

Analyst Insight

According to Procurement Resource, the Sorbic Acid price trend are expected to ride along similar lines in the coming months as the uncertain downstream demands will continue to guide the concerned market.

Sorbic Acid Price Trend for the July-September of 2023

Asia

Sorbic Acid price trend for the Asian region were found to be downward facing trajectory during the third quarter of 2023. Most of the market drivers for sorbic acid acted against its performance on the price index. The feedstock succinic anhydride was readily available, which reduced the production costs.

The construction sector was already struggling owing to the economic downturn; further, the sorbic acid demands from other downstream adhesive and sealant sectors remained on the downside. The end consumer purchasing power significantly came down after a prolonged period of high global inflation, and the expenditures in leather textiles, cosmetics, construction, etc., have also fallen substantially. This customer disinterest directly impacted the sorbic acid sales in the Asian markets, especially China, and the sorbic acid regional prices continued to perform poorly.

Europe

Just like the Chinese market, there was not much weight in the sorbic acid’s performance in the European market as well. The prices kept falling down consistently as the downstream demands were bearish, and the production costs had also come down. Moreover, offshore product procurement was also cheaper during the discussed period of Q3’23 since the transportation charges had also receded with the decline in crude oil prices. Overall, muted market sentiments were observed.

North America

Following the global falling trend, sorbic acid prices continued their southward journey in the American market as well. The clouded economic outlook of the region didn’t allow the sorbic acid market to open up. Overall, dull market trend were experienced.

Analyst Insight

According to Procurement Resource, the price forecasts do not look very positive for Sorbic Acid for the coming months, given the current market fundamentals.

Sorbic Acid Price Trend for the First Half of 2023

Asia

The first and second quarters of 2023 faced a continuous string of declining prices of sorbic acid as the trend suffered majorly from the weak procurement rates from the end-user industries. The number of inquiries from the downstream industries was affected by the weak movement of food and pharmaceutical industries.

Along with this subdued demand, the level of inventories rose, indicating weak trading sentiments and hampering the growth of sorbic acid prices. Other causes of this falling trajectory of prices were the feeble economic condition of the Asia-Pacific countries and the low interest of international buyers in the sorbic acid market.

Europe

In the first quarter, the feeble demand from the downstream industries was due to a declining interest from customers in the sector. The rising level of inventories and reduction in the cost of ethylene further proved to be a challenge for the sorbic acid price trend. In addition to this, the shifting weather conditions, labor crisis, and lower purchasing appetite of buyers pushed the price trend of sorbic acid in a negative direction.

North America

In North America, the end-user industries reduced their demand for sorbic acid, and along with fluctuating costs of energy and freight, the price trend of sorbic acid declined. In the local markets, the food and beverage industries witnessed a continuous decline in both the first and second quarters of 2023. This further led to the rise in the stockpiles, and thus, the traders had to sell the products at compromised rates, hampering the growth of the sorbic acid price trend.

Analyst Insight

According to Procurement Resource, the price trend of Sorbic Acid is expected to fall in the coming quarter. The weak performance of downstream markets, high levels of inventories, and rising economic concerns are expected to affect the sorbic acid market negatively.

Procurement Resource provides latest prices of Sorbic Acid. 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.