US Benzoic Acid (Exp) Prices to Witness a Weak Market Sentiment

Benzoic Acid (Exp) prices in the US region will fall significantly throughout December 2022. Trade links with China are expected to support fragile market sentiments in the US. According to the most recent data, US production orders for various active pharmaceutical components, including Benzoic Acid (Exp), in China have declined by 40%. Furthermore, decreased demand from the downstream industry for Benzoic Acid (Exp) and lower freight costs impacted business confidence, keeping it low throughout December 2022.

Consumer confidence in Benzoic Acid (Exp) has declined in the US market compared to what it was during the epidemic. One reason that continues to affect and maintain negative trade sentiments for Benzoic Acid (Exp) in the US market is the threat of a recession. Furthermore, due to domestic merchants' prior hoarding of Benzoic Acid (Exp), traders and suppliers were compelled to decrease their product prices to enhance sales and nurture significant downstream demand. The upcoming Christmas season in the US will negatively influence consumer demand, extending the decreasing price trend of the product. Prices will regularly fall throughout the next few weeks in December 2022 due to widespread reductions in aggregate demand.

Furthermore, backlogs at key ports in the US have been cleared, which has improved the market's overall supply chain and boosted trade morale. As retailers build up more enormous stockpiles and sea transportation costs continue to fall, the Benzoic Acid (Exp) price is expected to fall in December 2022. In the US, the price of Benzoic Acid (Exp) was anticipated to fall dramatically, dropping around 3.9% within the same period.

ChemAnalyst anticipates that global demand for Benzoic Acid (Exp) will increase in the coming months as orders increase. New production and enhanced manufacturing rates will likely influence a positive market attitude in the first quarter of 2023 to meet downstream demand. Restocking among domestic merchants promotes commercial activities as well.