The market for Sodium Benzoate expects a prosperous economy for the full month of May 2023. The primary factors influencing price change are upstream crude oil prices, feedstock Benzoic Acid and Caustic Soda prices. It is also projected that these factors would favorably impact the market scenario for Sodium Benzoate.

The market prices for Benzoic Acid and Caustic Soda impact Sodium Benzoate costs. Prices for Benzoic Acid skyrocketed after OPEC+ members abruptly announced a coordinated reduction in oil production. Due to the pattern of upstream Crude oil supply outpacing demand, the operational range of oil prices has once more swung upward. This influences the Sodium Benzoate downstream market condition globally. In May, OPEC+ will implement its production reduction plan, which is expected to result in a 1.15 million barrel per day decline in the supply of crude oil. As expected, the Federal Reserve increased interest rates by 25 basis points, following which they would stop rising.

The financial crisis hit again on May 1, driving the market into a frenzy when the First Republic Bank of the United States filed for bankruptcy. The basic support was lacking for Sodium Benzoate. On May 5, it was reported that Saudi Arabia had cut the price of crude oil futures in the Asian market. The Abu Dhabi National Oil Company of the United Arab Emirates said that it would reduce crude oil shipments by 5% beginning in May to balance the supply and demand of crude oil.

Furthermore, feed Caustic Soda prices increased globally due to a shortage as Chlor Alkali firms decided to reduce output in mid-April 2023 due to high input cost pressure in the nation, which helped to sustain Sodium Benzoate's rising trajectory. The improvement further aided the attempts to raise the price of Sodium Benzoate in economic conditions, the gradual improvement in downstream demand from the agrochemical and cleaning industries, and the average market follow-up.

The ChemAnalyst database predicts that upstream Benzoic Acid and caustic soda prices will show an upward trend during the second quarter of 2023, leading to an increase in the price of Sodium Benzoate.