Futures for Benzoic Acid are Likely to Increase in the U.S. Market

USA: According to market Analysis, there is an increase in Benzoic Acid prices in the domestic U.S. market during the third week of March 2023. Benzoic Acid, an antibacterial preservative, is widely used in Food & Beverages, particularly carbonated drinks. The main cause of food spoiling, the growth of yeasts and bacteria, is prevented by Benzoic Acid. In turn, the aforementioned reasons provide more explanation for the escalating domestic market demand, which raises the production price of Benzoic Acid to consumers.

In the USA, the price of Benzoic Acid is on the rise due to rising costs for the primary component, Toluene, as well as other factors, including high demand and limited supply. Regarding crude oil, the European nation declared that it would start taking the initiative to cut output by 4,90,000 barrels per day at the beginning of March, while the USA planned to keep releasing strategic crude oil reserves in the first half of this year. The oil market had a combination of long and short influences, and the oil price fluctuated. The gasoline demand soared as springtime brought on the peak travel season. The price of Toluene, with high octane value,  in the USA kept strong demand as aromatics stimulated the market for the product, and its usage was prevalent. Since the USA imports many of its commodities, including Benzoic Acid, from China, the prices are currently high and are anticipated to rise in the future.

As per the ChemAnalyst database, it is anticipated that the Benzoic Acid is likely to increase as the Federal Reserve's interest rate hike impacted oil prices, and investors were concerned that any interest rate increases by American central banks would hinder economic expansion and dim the outlook for demand for crude oil. Moreover, the U.S. dollar's strengthening would cause oil prices to decline. It is anticipated that there is an opportunity for an increase in oil prices, which would benefit the Toluene market. The key raw material for Benzoic Acid, Toluene, is in short supply, and its price is rising, which supports the rise in product prices in the domestic USA market.