The pricing trend of Benzoic Acid continues to showcase an upward trajectory in the Indian domestic market as we enter the second month of 2022. The Budget recently presented by the Finance Minister of India builds on the excellent Budget last year, continuing the trend toward more productive expenditure. This new Budget has been viewed positively by the economy and business sector of India, and it also strikes a balance between the challenges caused by the unprecedented Omicron variant waves and the need to contain the economic damage due to the pandemic. The Indian petrochemical industry, against the fear of margin squeeze and loss aversion caused by several factors including elevated input prices, high feedstock costs, and others, is all set to deliver strong earnings growth in the upcoming weeks. According to the industry experts, this growth will be driven by a steady recovery in demand and industrial manufacturer’s ability to pass on higher input costs to the consumers. 

The upcoming Lunar New Year celebrations across China and other parts of Asia are expected to promote a lull activity in the trading week starting Jan. 31 and for the next couple of weeks. As Benzoic Acid along is primarily imported from China, it is likely to impact the prices of the product in India.

As Per ChemAnalyst, the prices of Benzoic Acid are consistently rising in the domestic market on the back of the increasing raw prices compelled by India’s Anti-dumping policy. Benzoic Acid Ex-Mumbai prices were settled at USD 1840.58 per MT in the ending week of January. The upstream Crude oil prices remain strong on tighter supply from the start of 2022, which further leads to an increase in the prices of petrochemicals. The Indian domestic markets are particularly witnessing higher values in CFR import arenas. The rising prices of crude oil have led the buyers of marine bunker fuels to stay on the sidelines, as they fear the shortage of gasoil as a feedstock is tightening the Toluene supplies and boosting its prices, which is further resulting in the increased prices of Benzoic Acid in India. The Toluene continues to follow the upward movement with higher demand in the domestic market and is expected to follow oil markets higher despite the New Year holidays in Asia.

As for Anti-dumping Policy, ChemAnalyst concludes that, the anti-dumping duties will not be against the public interest. The imposition of these duties will be in the interest of the domestic industry, which has suffered drastic challenges due to dumped imports. They will further ensure that domestic industry can compete in the market and will ensure better and wider availability of options to the consumers.