US and Chinese Markets Brace for Salicylic Acid Price Decline in October 2023

Salicylic Acid prices are likely to show a declining trend in the US market in October 2023. Various factors support this projection, such as elevated interest rates, lackluster demand, and a plentiful supply of Salicylic Acid within the domestic market. Salicylic Acid is an organic molecule that is frequently utilized in the food and cosmetic industries. In recent times, demand from these end sectors has fallen, putting downward pressure on pricing.

China is a major exporter of APIs (Active Pharmaceutical Ingredients) to the US market. According to current data, China's economy is still in a slump, with prices decreasing due to weaker demand from consumers and businesses. Consumer prices remained constant in September compared to the previous year, as per the National Bureau of Statistics (NBS), while wholesale costs declined 2.5%, contributing to the expected market trend for Salicylic Acid in the Chinese market. However, manufacturing activity has rebounded following the golden week break, resulting in higher output in the second week of October. This resulted in a sufficient supply of Salicylic Acid, which might lead to a price drop in both the Chinese and US markets.

Additionally, a key factor that supports the projected trend for Salicylic Acid is the recent decline in demand for its raw material, phenol, in October. The downstream phenol market's focus had shifted, and the market had a strong wait-and-see mentality following the holiday. Due to the adverse effects on the industry chain, downstream products also exhibited a significant declining trend, characterized by minimal market activity and a scarcity of authentic orders.

The upcoming months are forecasted to see a discernible slowdown in the pace of the US economy. This is largely due to the anticipated impact on economic productivity from a decrease in domestic consumption and a drop in consumer expenditures. Consumer confidence in the United States fell for the third month in a row in October as rising interest rates and continuing inflation impacted consumer optimism, supporting the drop in Salicylic Acid prices. According to preliminary statistics, consumer confidence declined from 68.1 in September to 63 in October, which is below the predicted 67.2 and the lowest level since June. Aside from that, the US economy is anticipated to be hampered by sustained higher oil costs, which will undoubtedly put upward pressures on inflation, which could impact consumers' spending power and lead to lower Salicylic Acid prices in the US market.

According to the ChemAnalyst, the price of Salicylic Acid is expected to rise gradually in the following months. This forecast is based on increased consumer demand and a limited market supply. Additionally, it is anticipated that inflation will decline considerably in the upcoming months, increasing consumer confidence and fueling the growth of the Salicylic Acid industry.