For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Benzoic Acid market experienced a steady decline in prices, driven primarily by persistent oversupply and weakened demand dynamics. An imbalance between supply and demand was evident, with a surplus of Benzoic Acid leading to sluggish consumption from downstream industries. Factors such as reduced demand from neighboring regions, subdued trading environments, and overall weak international demand contributed to this downward price trend.
Manufacturers responded to the diminished demand by scaling back production levels, resulting in the first contraction in supplier lead times in three months. End-users adopted a cautious purchasing strategy, focusing on need-based buying rather than proactive inventory replenishment. This approach further dampened market activity and interest, exacerbating the weak demand environment.
In the USA, which saw the most significant price fluctuations, the quarter experienced a notable 6% decrease from the previous quarter. While the first half of the quarter reflected a slight decline of 1%, the quarter-ending price settled at $1,310/MT CFR New York. This figure underscores the negative pricing trend that permeated throughout Q3 2024. Fortunately, no significant disruptions or plant shutdowns were reported during this period, indicating that supply chains remained stable despite the prevailing challenges. The overall market outlook for Benzoic Acid in North America remains weak, with ongoing oversupply conditions continuing to shape the pricing environment.
Asia Pacific
In Q3 2024, the APAC region faced a challenging landscape for Benzoic Acid pricing, characterized by a notable and persistent decline in market values. This downturn can be attributed to several interconnected factors. Primarily, decreased industrial output across various sectors resulted in diminished demand, leading to an oversupply situation. This oversupply, coupled with weakened demand, exerted considerable downward pressure on prices.
The ongoing depreciation of local currencies against major global currencies further compounded these challenges, making imports more expensive and dampening market sentiment. Rising raw material costs, particularly for Toluene, significantly increased production expenses, squeezing manufacturers' margins and ultimately leading to reduced profitability. Compounding these issues, the quarter also experienced disruptions, including unexpected plant shutdowns that affected supply dynamics and further contributed to price volatility.
China emerged as a focal point for these price changes, experiencing a -2% decrease in Benzoic Acid prices from the previous quarter, with an even steeper -9% decline when comparing the first half to the latter half of Q3. The quarter concluded with prices at USD 1,020 per metric ton (MT) of Benzoic Acid, FOB Shanghai, underscoring the overall negative pricing environment pervasive throughout the APAC region.
Europe
In Q3 2024, the European region experienced a significant decline in Benzoic Acid pricing, primarily driven by a confluence of market factors. A notable reduction in demand from downstream sectors, particularly in the food and beverage and pharmaceutical industries, contributed to this downward pricing trend. This decrease was exacerbated by broader global economic challenges, including inflationary pressures and currency fluctuations that affected purchasing power.
High inventory levels also played a critical role in suppressing prices, as suppliers sought to offload excess stock amid weaker demand. Additionally, supply chain disruptions, particularly those stemming from geopolitical tensions and logistical bottlenecks, created an unstable market environment. Fluctuating raw material costs further complicated pricing strategies for manufacturers, who faced increased costs for essential inputs.
Within Europe, the Netherlands experienced the most pronounced price fluctuations, which mirrored the overall regional trends. Throughout Q3, prices reflected a negative correlation, showing a 1% decrease from the previous quarter. Comparisons between the first and second halves of the quarter indicated a cumulative price decline of 2%. Market dynamics were also affected by production disruptions, including plant shutdowns, culminating in a quarter-ending price for Benzoic Acid (Tech. Grade) FOB Rotterdam of USD 1,375/MT. This figure underscores a stable to negative pricing environment prevailing throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Benzoic acid market saw significant price increases due to various factors impacting supply and demand dynamics. In April, however, the United States experienced a notable drop in Benzoic acid prices, mirroring a similar trend in Chinese provinces. This was primarily due to the U.S.'s role as a major importer. The easing of geopolitical tensions led to reduced freight charges, which lowered shipment costs and Benzoic acid prices in the U.S. Additionally, substantial existing inventories from bulk purchases in anticipation of higher demand contributed to a subdued market. This surplus, combined with decreased purchasing activities and weakened consumer confidence due to inflation, further dampened demand.
Supply dynamics also played a critical role, with the appreciation of the U.S. dollar exacerbating the downward trend in prices, challenging producers and suppliers. Global supply chain disruptions, ongoing geopolitical tensions, and logistical challenges such as drought-induced bottlenecks and prolonged vessel delays also influenced the market. The General Rate Increase (GRI) imposed by shipping carriers further raised costs, leading to heightened procurement activities as industry participants adopted bulk buying strategies to mitigate future supply uncertainties and capitalize on existing arbitrage opportunities.
In the U.S., the most significant price changes occurred due to the early onset of the peak shipping season, robust local purchasing, and strong downstream demand. Seasonal factors, like the anticipated higher demand during summer, amplified price increases. By the end of Q2, the price of Benzoic acid in the U.S. settled at USD 1265/MT CFR New York, reflecting a consistent upward trajectory and a 0.18% average quarterly increase.
Asia Pacific
In Q2 2024, the Benzoic Acid market in the APAC region experienced a significant upward pricing trend. Strong demand surpassing limited supply, intensified by domestic and international market pressures, was the primary driver. Traders responded to the high demand by purchasing at elevated prices. Geopolitical tensions and rising input costs, particularly energy, further escalated production expenses, impacting end-product prices. Additionally, increased freight costs due to soaring crude oil prices strained the market, raising import costs.
China saw the most substantial price changes, facing severe supply challenges from low inventories and heightened international demand. The post-Lunar New Year period usually marks a rebound in production, but this year it struggled to meet the growing demand. A Force Majeure shutdown at the Hubei Kelin Bolun New Materials Co., Ltd plant in Zhijiang City in June, due to a heavy rainstorm, exacerbated supply constraints and contributed to rising prices.
Despite these pressures, prices decreased at the beginning of Q2. In April, the Chinese market observed a significant downturn in Benzoic Acid prices, influenced by an abundance of domestic inventories. This surplus led market players to lower prices to destock and create space for replenishment. The appreciation of the US dollar supported this trend, resulting in an average quarterly price increase of 0.34% in the second quarter. By the end of Q2 2024, the Benzoic Acid market in China concluded with a quarter-ending price of USD 1110/MT FOB Shanghai.
Europe
In Q2 2024, the European Benzoic Acid market experienced a significant price increase driven by rising production costs, geopolitical disruptions, and supply chain constraints. Germany, a major importer, saw a notable price decrease in April, reflecting a broader downturn in exporting regions. This decline was due to substantial inventories from prior bulk purchases, leading to oversupply and dampening market sentiment. Reduced purchasing activities and weakened consumer confidence, exacerbated by inflation, further suppressed demand.
The easing of geopolitical tensions reduced freight charges, impacting transportation costs and overall pricing in the German market. Supply dynamics also influenced the pricing landscape, with the US Dollar's appreciation against the Euro adding challenges for producers and suppliers. Escalating feedstock prices, particularly for Toluene, significantly increased production costs. Logistical disruptions from the Panama Canal drought and reduced vessel traffic exacerbated supply issues, creating bottlenecks and market strain. The ongoing conflict in Israel and Gaza caused sporadic shipping delays, particularly affecting routes through the Red Sea and Cape of Good Hope, intensifying market volatility.
Germany faced a confluence of factors, including a weakened Euro and heightened inflationary pressures, driving prices upward. Seasonal demand fluctuations led to increased procurement activities early in the quarter, with an average quarterly price increase of 0.18%. By the end of Q2 2024, the Benzoic Acid market in Germany concluded with a quarter-ending price of USD 1230/MT CFR Hamburg, indicating a stable yet positive pricing sentiment amidst ongoing economic and geopolitical challenges.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Benzoic acid in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Benzoic acid in the US was USD 1260/MT CFR New York, showing an average quarterly increase of 2.90%.
The USA experienced rising prices due to various factors: production slowdowns, maintenance shutdowns, export restrictions, increased freight charges, and low inventories. Dependence on Chinese imports worsened due to disruptions in Chinese provinces during Lunar New Year, constraining supplies and raising prices. Post-Lunar New Year, global demand for Benzoic acid surged, influenced by geopolitical tensions, trade disruptions, and increased container freight rates, causing another price hike in March. The US, a major importer, felt these effects, adjusting prices to remain competitive amid limited inventories and delayed supplies from exporting regions. Concerns over potential disruptions in the Mississippi River due to weather further intensified inquiries and pushed prices up.
The price of raw material, Toluene, also contributed to the hike. Despite a slight decrease at the start of Q1, the Benzoic acid market eventually saw falling prices and unified sentiment, partly due to strategic actions by the USA influencing global prices. Factors like reduced raw material costs and declining manufacturing activity in the USA led to lower prices as downstream enterprises adjusted procurement strategies.
Asia Pacific
In the first quarter of 2024, the pricing of Benzoic acid in the Asia-Pacific (APAC) region remained mostly stable, with some fluctuations in specific countries. In conclusion, the latest quarter-ending price for Benzoic acid in China was USD 1100/MT FOB Shanghai with an average quarterly incline of 1.36%. The demand for Benzoic acid from industries like pharmaceuticals and food processing stayed consistent, supporting prices and maintaining a positive market sentiment. In February 2024, prices increased due to higher demand and low inventories, exacerbated by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further reduced availability.
After the holidays, there was a surge in purchasing both domestically and internationally, driven by consumer confidence and favorable sentiment, with traders benefiting from the Chinese currency depreciation against the USD. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders in anticipation of shortages. Additionally, the increase in raw material Toluene prices also contributed to the rise in Benzoic acid prices. In March, sustained demand from Chinese end-users led to higher Toluene prices, prompting increased production. When the market reopened after the holidays, prices surged due to the production ramp-up to meet domestic demand.
The pricing trends for Benzoic acid in the APAC region in the first quarter of 2024 were generally stable, although prices did decrease at the start of the quarter. This drop was influenced by year-end destocking activities from the previous month, which had a notable impact on market dynamics. Additionally, weakened demand downstream and sufficient inventories put pressure on Benzoic acid pricing. In the Chinese market specifically, Toluene prices also saw a decline due to weak demand.
Europe
In Q1 2024, the pricing environment for Benzoic acid in Europe saw a notable positive trend with increasing prices. By the quarter's end, the latest price for Benzoic acid CFR Hamburg in Germany was recorded at USD 1225/MT CFR Hamburg with an average quarterly incline of 1.02%, reflecting market conditions and challenges in procurement and delivery.
Several factors drove these shifts, including heightened demand from downstream sectors, supply chain disruptions, and currency exchange rate fluctuations. Germany's market, heavily impacted by the Euro's depreciation against the dollar and shortages in exporting nations, experienced shipment delays and extended lead times for Benzoic acid availability. Geopolitical tensions and trade interruptions added further complexity, influencing overall market sentiment. Rising container freight rates, especially affecting maritime transport-dependent industries, significantly contributed to price surges.
As a key importing hub, Germany's pricing closely correlated with major exporting countries, with currency devaluation amplifying challenges for traders and buyers facing higher USD-denominated import costs alongside increased raw material prices, notably for Toluene. The temporary halt in mass production during China's Lunar New Year and Spring Festival exacerbated the situation, leading to heightened post-holiday order volumes and subsequent price spikes in predicting regions.
For the Quarter Ending December 2023
North America
The Benzoic Acid market in the North America region experienced significant fluctuations in the fourth quarter of 2023, influenced by various factors that affected both market dynamics and pricing. At the onset of October, a notable surge in demand from the downstream sector, driven by diverse end-user industries, resulted in a tightening of supply and subsequent price increases. This demand spike, coupled with rising input costs—particularly for raw materials like Toluene—further contributed to the upward trend in prices.
The economic situation in the United States also played a pivotal role in shaping market sentiments during this period. Inflationary pressures and escalating energy prices in the U.S. impacted the Benzoic Acid market. However, towards the end of October, prices began to depreciate, concluding the fourth quarter on a downward note. The USA, being an importer, followed suit in this price decline. Key Chinese provinces, significant players in the Benzoic Acid market, experienced a decline in prices, which had a ripple effect on overall pricing in the USA. Several factors, including reduced international demand leading to lower export prices, contributed to this decline. Moreover, the U.S. Benzoic Acid market faced a price reduction due to excess inventory among suppliers, highlighting challenges in effectively managing stock.
Adding complexity to the situation were upstream factors, specifically the decline in Toluene prices. Throughout December, Toluene prices persistently dropped due to continuously decreased demand. Given Toluene's critical role as a raw material for benzoic acid production, its reduced prices intensified the broader downward trend in benzoic acid prices. The quarter concluded with a Benzoic Acid price of USD 1160/MT CFR New York in the USA, experiencing an average quarterly decline of 2.96%.
Asia Pacific
The Benzoic Acid market in the APAC region faced notable challenges during the fourth quarter of 2023, marked by significant price fluctuations. Various factors influenced the market dynamics throughout this period. At the beginning of Q4, prices witnessed an increase, primarily attributed to a surge in demand from end-users. Concurrently, a reduction in production capacity among Toluene manufacturers resulted in tight supplies and limited inventory. The sudden spike in demand, driven by concerns of shortages, escalated the production costs of Benzoic acid. To maintain profitability, manufacturers had to adjust their pricing strategies. Additionally, strategic bulk buying by market players aiming to replenish their stocks contributed to the price surge. However, as November commenced, there was a notable decrease in Benzoic Acid demand, leading to an excess inventory and subsequent price decline. This was mainly attributed to the sluggish economic recovery in China, a key consumer of Benzoic Acid. Furthermore, the continuous decline in the prices of the raw material Toluene, used in Benzoic Acid production, further contributed to the overall decrease in prices. Supply constraints were also observed as manufacturers operated at reduced capacities.In China, Benzoic Acid prices depreciated by an average of 3.35% quarterly. The domestic market faced an oversupply of local goods and sluggish trade orders, resulting in a gradual decline in prices. Demand from downstream industries remained low to moderate, and suppliers maintained sufficient inventory to meet overall off-take requirements. Notably, there were no reported plant shutdowns during the quarter. China, as a significant market player, experienced a price decrease and a moderate demand outlook from downstream industries. The quarter concluded with a Benzoic Acid price of USD 1070/MT FOB Shanghai.
Europe
In the last quarter of 2023, the European Benzoic Acid market encountered various challenges that had an impact on pricing. Initially, as October commenced, there was a significant decrease in the demand for Benzoic Acid throughout the region, resulting in an excess of inventory. This surplus exerted pressure on the market, leading to a reduction in prices. The prevailing expectation was based on the anticipation of an uptick in inquiries from the downstream sector, prompting proactive accumulation of excipients. However, as December approached, the market took an unforeseen turn, compelling merchants to adjust their inventory levels in response to the evolving situation. Additionally, the cost of raw materials, especially Toluene, decreased during this period, leading to lower production costs for Benzoic Acid manufacturers. These cost reductions were passed on to consumers, further contributing to the price decline. Notably, the Netherlands witnessed the most substantial price changes in the region, with its market remaining constrained, featuring moderate supply and demand. In summary, the European Benzoic Acid market faced a challenging quarter, characterized by diminished demand and an oversupply that led to a decline in prices. The latest price of Benzoic Acid (Tech. Grade) FOB Rotterdam in the Netherlands for the fourth quarter of 2023 was USD 1175/MT, reflecting an average quarterly decline of 1.24%.
For the Quarter Ending September 2023
North America
During the period from July to September, the CFR New york prices for Benzoic acid escalated from $1155/mt to $1275/mt, concluding the third quarter of 2023 with a positive tone. This upward movement in prices indicated a clear preference for higher price levels, demonstrating an average quarterly increase of 2.95%. Throughout the quarter, the domestic market for this nutraceutical experienced an upward swing, primarily driven by the continuous growth in demand for Benzoic acid across various end-user sectors. Notably, the limited to modest inventory levels compelled sellers to raise their prices incrementally each month, serving as a pivotal factor supporting the optimistic price trend for Benzoic acid in the United States. Furthermore, the cost of importing rose in the latter half of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. While inflation showed a slight slowdown in the third quarter of 2023 as a result of a significant shift in the United States economy, the Federal Reserve's decision to increase interest rates kept market participants vigilant. Starting in the first week of July, there was a notable surge in warehousing costs, warehouse utilization, and inventory expenses in the United States. Consequently, commodities like Benzoic acid experienced price hikes due to the rising costs associated with inventory management and storage. In summary, it is likely that importing countries followed a trajectory similar to that of exporting countries during this period.
Asia Pacific
The third quarter of 2023 witnessed a significant price increase for Benzoic acid, with prices surging from $1060/mt in July to $1190/mt FOB Shanghai in September. This trend indicated a strong inclination towards higher prices, reflecting an average quarterly rise of 3.35%. China, the world's second-largest economy, had a slower growth rate than expected in the first half of 2023, which continued into the second half of the year, casting an unfavorable shadow over the beginning of the third quarter. This was primarily due to worsening deflation, high youth unemployment, and weak foreign demand. Several factors contributed to China's Benzoic acid price hike during this quarter, but the most influential were the strengthened Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Simultaneously, the prices of the raw material Toluene in the Chinese market strengthened, driven by rising energy costs. Market dynamics showed supply constraints, with acid factories maintaining low inventories. While maintenance companies gradually resumed production, demand did not show significant improvement, leading to considerable market pressure. The increased value of the Yuan and the declining US dollar raised export costs, impacting both the local and foreign markets. Market players meeting general demand kept their supplies relatively low, and manufacturing production remained steady throughout the period. The heightened demand and supply chain disruptions created an imbalance, resulting in upward pressure on prices. In the latter weeks of September, just before the Golden Week holidays, there was a slight increase in both freight and manufacturing due to a spike in demand and inquiries. Another contributing factor to the price surge was strategic bulk ordering by market participants looking to replenish their inventories. The heightened demand prompted many buyers to expedite their Benzoic acid procurement, intensifying overall demand pressures during the holiday season.
Europe
In the third quarter of 2023, the cost of Benzoic acid exhibited a consistent pattern, with a modest increase from $1280 per metric ton in July to $1220 per metric ton FOB Rotterdam in September. This trend signaled a significant price decline, resulting in an average quarterly reduction of 2.46%. As a result, the global market has seen an oversupply of Benzoic acid, leading to a noticeable drop in its market value. Adding to this situation, domestic traders have accumulated substantial Benzoic acid reserves and, in a strategic move to mitigate losses, they've opted to reduce their price quotations, further contributing to the overall market suppression. This decrease can be attributed to a substantial decrease in the cost of its primary raw material, Toluene, in the preceding months. This reduction in Toluene prices subsequently lowered production costs for Benzoic acid manufacturers. Additionally, reduced raw material expenses have made Benzoic acid production more cost-effective, and these savings are being passed on to consumers. Furthermore, a stable demand forecast for Benzoic acid has played a significant role in the price reduction. To remain competitive, the European domestic market has adjusted prices to undercut major exporting countries, thereby influencing the Benzoic acid market in the third quarter.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the U.S. market for Benzoic acid witnessed oscillation. In the first two months of Q2, the prices were recorded to be increasing stably in the wake of enhanced dynamics of supply and demand. Given the rising demand from end-user suppliers, there was a moderate lack of Benzoic acid on the shelves of domestic warehouses, leading to price inflation in the market. Asia-US trade has grown since the zero-covid tolerance policy was abolished. Eventually, at the commencement of June, prices started to fall, and the market witnessed a considerable plunge in the trajectory of Benzoic acid in the US. The price was recorded at the end of Q2 2023 at USD 1170/ CFR New York, with an average quarterly inclination of 1.17%. The US Benzoic acid market faced sluggish market sentiment due to demand cuts from the local downstream industries. Stocks remained in excess amount among weakening demand that insisted the suppliers sell at a lower price. The distributors were hesitant to place large orders due to the ongoing decline in price, which is expected to be increased further by the major players in the US Benzoic acid market.
Asia
The Benzoic acid market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. The price was valued and accessed at USD 10800/MT FOB Shanghai as of the end of Q2 2023, representing an average quarterly incline of 2.31%. At the commencement of Q2 till the mid of Q2, the Benzoic acid market showed significant price inflation due to soaring domestic and international orders. China's exports saw a better-than-expected market situation in April as consistent inquiries from the domestic and international markets remained above average. Also, the increased production rates to refill the inventories with fresh stock and cater to the upcoming demand market situation remained strong. The supply of benzoic acid has been somewhat constrained, due to several factors, including production disruptions in China and the ongoing war in Ukraine. This reduced supply has also contributed to the increase in prices. Also, as Benzoic acid is a petroleum-based product, so the rising cost of oil has directly affected the cost of production. Later with the termination of mid-Q2, the prices fluctuated, and the prices witnessed to deflate significantly. Due to the large inventory of Benzoic acid in warehouses, suppliers had to lower their prices to clear existing stocks. In addition, this price trend was essentially supported by the decline in sales in the end-user sectors, and there were no new inquiries from domestic and international suppliers. The demand from downstream industries, such as food preservatives, plasticizers, and cosmetics, has been declining in recent months. The prices of raw materials used to make Benzoic acid, that is, toluene, have been declining, which has also put downward pressure on benzoic acid prices.
Europe
In the second quarter of 2023, the Benzoic acid in the European market saw fluctuations. With the inception of the second quarter, prices inflated, backed by a supply-demand gap. A sudden surge in domestic inquiries across the nation reinforced this surge in prices. However, the supplies among the merchants were enough to meet the overall requirements for this month. Furthermore, irrespective of weaker upstream toluene prices, the prices for Benzoic acid excipients surged during the third month. Apart from that, another factor that supported this rise in demand for Benzoic Acid Excipient includes an appreciation of the Euro against USD as it makes German exports more expensive for foreign buyers, resulting in a decline in export sales while imported goods have become cheaper for German consumers, which could boost the domestic inquiries. According to the data, Europe's inflation rate decreased to 7.4%. The unexpected oil output cut decision by the OPEC+ members also had a favorable impact on the market environment. Increased energy costs, increased production expenses, and skyrocketing shipping costs all contributed to the market's continued strength. Later in the third month (June) of Q2, the prices depreciated, and within no time, the market for Benzoic acid witnessed a substantial drop. At the termination of Q2 2023, the settlement price for Benzoic acid dropped to USD 1140/MT CFR Hamburg with an average quarterly inclination of 1.84%. Germany's inflation rate fell to 7.4% in March 2023, according to a report from the Federal Statistical Office. Also, the buyers were delaying placing large orders as the monsoon season was arriving, and therefore restocking was halted as the risk of damage increased. Suppliers were providing Benzoic acid at a lower price, but buyers are still in the wait-and-watch situation for further price drops from mills. The ripple effect caused by weak demand and increased Benzoic acid inventory level provoked the suppliers to decrease the offer price of Benzoic acid in the German spot market.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Benzoic acid market in the North American region was very volatile. As a result of the upstream crude oil surprise decrease in the US market, prices were predicted to decline during Q1 2023. Furthermore, deepening concern for an economic slowdown, which has been putting pressure on crude oil futures, has also remained a matter of concern for the global key players. However, the announcement of the price cap and Russia's anticipated decline in crude output also affected the market situation for benzoic acid. Prices did stabilize in the mid of Q1, but with the commencement of March, the prices dropped magnificently by 20%. As global crude oil prices had witnessed a plunge owing to a weakening demand outlook amidst a recent wave of the banking crisis, the prices of benzoic acid crashed down with the values recorded at USD 1140/MT CFR New York with the average quarterly declination of 8.37%.
Asia
The Benzoic acid market in the first quarter of 2023 in Asia Pacific was very volatile. As a result of the upstream crude oil surprise decrease in the APAC market, prices were predicted to decline during Q1 2023. As supplies remained high and the existing inventories among the merchants, the market players decided to keep their quotations low. Also, low production costs further supported the negative trend. Later, in the month of Feb, the prices increased by around 4 percent due to higher production of food additives after the spring festival. The price and demand for Benzoic Acid in China's domestic market grew throughout the entire month. With the commencement of March, the prices depreciated considerably on the back of dull purchasing sentiments from the end-user industries and a decrease in overall inquiries from the international market. Also, market players decide to lower their quotations to destock their existing inventories and replenish their shelves with fresh stocks. The upstream Toluene prices and the crude market further witnessed a depressed market situation. The entire operating range of oil prices decreased because of tightening liquidity and anticipated changes in the supply and demand structure for crude oil due to the risk aversion sentiment, which further influenced the entire market. At the termination of Q1 2023, the settlement price for Benzoic acid fell to USD 1020/MT FOB Shanghai with an average quarterly declination of 3.75%
Europe
The Benzoic acid market in the first quarter of 2023 in the European region was very volatile. As a result of the upstream crude oil surprise decrease in the European market, prices were predicted to decline during Q1 2023. As supplies remained high from the USA, the US recently released its additional Oil reserves, which improved the supplies in the global market. Further, supplies from Saudi Arabia also remained stable, and no disturbances were observed. Furthermore, the major driving factor was the low demand outlook that appeared after a recent strike by French refinery workers amidst a looming banking crisis in the USA. This all affected the Benzoic acid price in the European market. Also, ample inventories among the suppliers kept the market situation weak throughout the quarter. At the termination of Q1 2023, the settlement price for Benzoic acid fell to USD 1090/MT CFR Hamburg with an average quarterly declination of 7.26%
For the Quarter Ending December 2022
North America
Due to the protracted market instability in the United States, Benzoic acid prices significantly dropped from $1715/mt to $1520/mt from October to December. During the first week of October, imports of Benzoic acid from China were restricted due to the country's Golden Week. Domestic providers were able to meet the overall demand thanks to their large stocks, and offtakes in the end-user industries were also on the lower side during the quarter. Due to feedstock pricing, China's Covid lockdowns, Russia's unrest in Ukraine, and other factors, the Benzoic acid market remained hampered for the majority of the quarter. However, there was a gradual improvement in the second half of the year as the economy began to grow, and the ports had a significant decrease in ship backlogs after a protracted port backlog.
Asia Pacific
Benzoic Acid prices in China showed a decreasing price trend during the fourth quarter of 2022 in the Asia Pacific region, with FOB Shanghai values falling from $1305/mt to $1150/mt from October to December. The orders for China's sector producing Benzoic Acid declined steadily during the first week of October as a result of the shutdown of industrial facilities for the Golden Week. It was challenging for the market to catch up to the small rise seen in some downstream industries during the first part of Q4 because Chinese traders had to deal with a range of contradicting signals after a one-week break. Large inventories allowed domestic producers and suppliers to meet all overall demand for the whole quarter. In reaction to criticism and severe turmoil in the country, the administration revised its zero-covid policies, which once again made the country vulnerable.
Europe
In Europe, Benzoic Acid prices showed a downward tendency in the fourth quarter of 2022, with CFR Hamburg values dropping from $1575/mt to $1380/mt from October to December. Along with the rising energy and raw material prices, demand in Germany remained on the weaker side during the quarter, making it challenging for the pharmaceutical and nutraceutical businesses to plan ahead and stay afloat. Germany's industrial production only slightly grew in October despite rising energy prices and supply-chain worries.
For the Quarter Ending September 2022
North America
Due to the erratic demand from downstream sectors like food preservatives and plasticizers, Benzoic Acid prices displayed a shifting trajectory during the third quarter of 2022. Due to a combination of high market demand and low stocks, Benzoic Acid prices somewhat increased at the beginning of the first half of Q3 2022. The prices of Benzoic Acid gradually decreased in the second half of Q3 2022. The easing of Black Sea ports brought on by the Russia-Ukraine conflict led to a drop in upstream crude prices and feedstock toluene, which influenced the market for Benzoic acid. Additionally, the demand for processed and packaged food from the food and preservation business led to a decline in benzoic acid's market growth in the North American region. In the final weeks of the quarter, the prices of Benzoic Acid were assessed at around USD 1750/MT for CFR New York in September.
Asia
Due to sluggish demand and the ease of ports following the continuing Russia-Ukraine war, Benzoic Acid prices started to decline in the third quarter of 2022. Due to consistent demand and available supplies in the Asia Pacific, Benzoic Acid prices abruptly dropped at the beginning of the first part of Q3 2022. Due to low demand, the price of toluene, a raw material, also saw a fall at the end of the first half of Q3 2022, which was followed by a decline in the price of Benzoic Acid. Additionally, the price of benzoic acid in domestic and international markets was impacted by port congestion and route easiness. Towards the end of Q3 2022, the prices were recorded to be USD 1330/MT FOB Shanghai in September.
Europe
Due to a decline in demand from the local market, Benzoic Acid prices in Europe showed a collective downward price trend in the third quarter of 2022. Due to existing stockpiles and steady demand, the price fluctuated on the lower side at the start of Q3 2022's first half. Low demand in the cosmetics and ink and paints industries, as well as at the beginning of Q3 2022, had an impact on benzoic acid prices. Following Russia's resumption of natural gas production as a result of its invasion of Ukraine, feed feedstock prices increased significantly. The prices of toluene have also fallen due to an increase in export sales and the transition to in-house production. Towards the end of the quarter, the prices of Benzoic Acid were assessed around USD 1612/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Benzoic acid prices showcased fluctuating trajectory owing to the unstable demand from the downstream industries, such as food preservatives, plasticizers, etc. At the onset of the first half of Q2 2022, the prices of Benzoic acid slightly decreased following stable market demand and enough inventories. In the second half of Q2 2022, the benzoic acid prices went up gradually. The disruption caused by the Russia-Ukraine conflict resulted in increased upstream crude prices and feedstock toluene, impacting the Benzoic acid market. Also, demand from the food and preservative industry for processed and packaged food prompted to drive the market growth of benzoic acid in the North American region.
Asia
In the second Quarter of 2022, Benzoic acid witnessed an oscillating price trajectory owing to stable demand and the ongoing Russia-Ukraine war. At the onset of the first half of Q2 2022, the benzoic acid prices suddenly decreased due to steady demand and existing supplies in the Asia Pacific. By the termination of the first half of Q2 2022, the benzoic acid witnessed an upsurge in the price trend, followed by the inclination in the prices of raw material toluene due to the Russia-Ukraine conflict. Furthermore, route disruption and port congestion also affected the price of benzoic acid in regional and overseas markets. A slight increase in the production cost and gradual inclination in demand from food and preservative industries prompted the prices to increase. Towards the end of Q2 2022, the prices were recorded to be USD 1320/ton FOB Shanghai.
Europe
In the second quarter of 2022, Benzoic acid prices showcased a collective upward movement in the European market because of an upsurge in demand from the regional market. With the commencement of the first half of Q2 2022, the price fluctuated towards the lower side, owing to existing inventories and stable demand. At the onset of the second half of Q2 2022, the high demand for the ink and paints industry and the cosmetic sector affected the prices of benzoic acid. European energy setback following the suspension of Russian gas after their invasion of Ukraine led to a significant price increase of feed toluene. Reduction in the export sale and switching over to own manufacturing has also boosted the prices of Toluene.
For the Quarter Ending March 2022
North America
In North America, the prices of Benzoic Acid surged in the domestic market during the first quarter of 2022, backed by strong downstream demand and high upstream cost. The demand from downstream industries such as the food, beverages, and pharmaceutical sectors was firm. Besides, the prices of upstream toluene were inclining, which further propelled the Benzoic Acid prices in the upward direction. Furthermore, skyrocketed crude oil prices and logistic charges added to the already augmenting price value of Benzoic acid. In addition, the continued labor shortage and port congestions fuelled the prices of Benzoic Acid as well. The evaluated prices of Benzoic Acid landed at USD 4200/MT CFR Illinois in March.
Asia Pacific
The Asia-Pacific region witnessed an upward trajectory in the prices of Benzoic Acid during Q1 of 2022. The increased downstream demand for sodium benzoate to act as a food additive is the prime reason for escalating Benzoic Acid prices in the domestic market, as Benzoic acid is the upstream for Sodium Benzoate. Furthermore, the price rise of feedstock toluene is another factor causing a surge in Benzoic Acid prices. Moreover, inclining crude oil prices and freight charges further fuelled the prices of Benzoic Acid. In India, the assessed prices of Benzoic Acid were USD 1861.43/MT at Ex-Mumbai during March, after the consistent rise throughout the quarter.
Europe
In Europe, the pricing trend of Benzoic Acid was inclining in the first quarter of 2022 by nearly USD 150/MT, on the back of strong demand from end-user industries and growing feedstock prices. As the costs of Toluene (Feedstock) increased throughout the quarter, so prices of Benzoic Acid also rose. The need for Sodium Benzoate from F&B industries further propelled the prices of Benzoic Acid upward. Besides, the continued rise in freight charges and the escalating crude oil prices amidst Russia-Ukraine war tensions pushed the Benzoic Acid prices upward. Shipping restrictions on several essential ports and shortage of Shipment containers were other few reasons that contributed to the price hike of Benzoic Acid.
For the Quarter Ending December 2021
North America
In North America, the prices of Benzoic Acid declined in the US domestic market during the fourth quarter of 2021. The US is typically a net importer of upstream Benzene. However, it also exports Benzene to several countries, including China and Europe, which fell by almost 83% from October to November due to prolonged supply length due, which supported the downward trajectory of the price trend of Benzoic Acid in the country. Benzoic Acid prices decreased from USD 4762/MT to USD 4326/MT CFR Texas from October to December. In terms of demand, Offtakes from the downstream pharmaceutical and Food & Beverage industries remained strong throughout the quarter.
Asia
During the fourth quarter of 2021, the pricing trend of Benzoic Acid demonstrated an upward trajectory across the Asia Pacific region. In the Chinese domestic market, the prices of Benzoic acid witnessed a significant rise and escalated from USD 1390/mt to USD 1675/mt FOB Qingdao from October to November. The skyrocketing feedstock and energy cost, container shortages, ramped-up imports, high freight charges, and labor shortages are some of the factors that have supported the price trend in the country. In India, Ex-Mumbai Pharma grade Benzoic acid prices increased from USD 1680.27/mt to USD 1754.7/mt during the 4th quarter, following the same market trend as China. The demand for Benzoic Acid from the downstream sectors remained firm throughout Q4.
Europe
The European Benzoic Acid market mirrored the pricing trend of the US in the 4th quarter of 2021. The consumption volumes from downstream pharma and food and beverage industries remained elevated throughout Q4. The exorbitant freight charges and prolonged port congestion continued to hamper the market sentiments of Benzoic Acid in the region. This market disruption was further supported by the supply constraints, including container shortages, labor shortages, continued on and off COVID-19 restrictions across port regions, and congestion at ports.
For the Quarter Ending September 2021
North America
In North America, Benzoic Acid Market witnessed an exponential surge during the third quarter. Due to the drift in the values of upstream Benzene, and the strong demand from the downstream sectors including Pharmaceuticals and Food & Beverages, prices of Benzoic acid streamed high during the timeframe. In addition, many manufacturers were compelled to shut down their production units ahead of the hurricane Ida as a contingency plan which directly influenced the pricing trend of Benzoic Acid. Moreover, US is among the major exporters of Benzoic Acid hence, supply chain disruption caused by hurricane also send ripples to the global prices of Benzoic Acid.
Asia
At the beginning of Q3 2021, Asian market encountered a relaxation in the prices of Benzoic Acid after witnessing a significant hike during the second quarter. However, later a rush in the value of Benzoic Acid was observed in Asian market owing to the various factors. In China, many chemical industries were impelled to curtail their production rates due to the power deficit condition which consequently led to the hike in the prices of Benzoic Acid and the other materials sourced from China. Moreover, shutdown of Ningbo port and the congestion on several ports in China further contributed to the upward trajectory in the prices of Benzoic Acid during the third quarter. In India, Benzoic Acid market remained elevated throughout the quarter owing to the exorbitant freight charges because of container shortage and sturdy demand from the downstream industries. Ex-Mumbai Benzoic Acid monthly average price stood at USD 1594.13/MT in September witnessed a hike of USD 133.84/MT since July.
Europe
In Europe, Benzoic Acid prices encountered a marginal hike due to the constrained availability and a firm demand from the pharmaceutical sector during the third quarter. In addition, an extreme shortage of containers and extended shipping time also led to the lower import supplies throughout the quarter, which consequently aided the inflation in the prices of Benzoic Acid in the European market. Moreover, the arrival of Ida hurricane in US coupled with a surge in the upstream rates also influenced the value of Benzoic Acid and its derivatives in Q3.
For Quarter Ending June 2021
North America
Owing to the strong push from domestic Benzene market, as major manufacturers had to increase their product prices to maintain their margin, prices of Benzoic Acid rose effectively during this quarter. On the demand perspective, demand for Benzoic Acid remained firm throughout the quarter from the domestic as well as from the international market, supported by sturdy offtakes from pharma and food additive segment. In addition, in effect of firm demand and tight supply, Eastman did consecutive positive revisions in Benzoic Acid prices, one was of USD 220/MT for all grades during May and other was of USD 110/MT for technical grade during June, which were applicable to North America and Latin America regions.
Asia
After reaching unprecedented highs during the previous quarter, prices of Benzoic Acid started relaxing moving into April. In China, prices of Benzoic Acid drifted during the month of April and later braced stability for other two months. Benzoic Acid being a majorly imported commodity in India, the decline in prices also impacted the price trend in the domestic market. Amid the second wave of pandemic in India, demand for Benzoic Acid remained lower than the pre-pandemic level. Thus, the prices declined eventually during the month of May and later improved with reduction in new pandemic cases in the country. Therefore, by the end of the quarter, price of Benzoic Acid hovered around USD 1446/MT and USD 1113/MT for India and China, respectively.
Europe
European Benzoic Acid prices maintained stability throughout the quarter, where the demand remained modest to low during this timeframe. Despite of a steep rise in upstream Benzene prices, Benzoic Acid prices fluctuated in a narrow range, owing to the stable to dull demand from downstream preservative segment. Meanwhile, pharma sector remained firm in the meantime, which counterbalanced the overall demand scenario of Europe.
For the Quarter Ending March 2021
North America
Regardless of disruptions in production activities from the winter storms, when most of the raw materials and chemical prices were going higher every week, prices of Benzoic Acid maintained stability throughout the quarter and experienced a marginal rise till March. Demand from the downstream personal care and pharmaceuticals sector remained low to moderate across the region, hence the prices witnessed a marginal rise of 1.26% to settle around USD 1284 per MT till March.
Asia
The Asian market encountered a substantial rise in the overall demand for Benzoic Acid during Q1 2021. China suffered a huge price rise due to low inventory levels after the Chinese lunar holidays and shortage of raw materials prevailing during the quarter, which prompted prices to seek an aggressive uptrend. The prices of Benzoic Acid in China rose by more than 32% and settled around USD 1217 per MT amidst high domestic demand and low product availability. Meanwhile in the Indian markets, tight supply amidst strong demand and high import cost due to record high container and freight rates forced the prices to rise effectively by 3.28% between January to March.
Europe
Europe had a fair demand for Benzoic acid from the domestic food and pharma sector, and the supply remained firm. Hence the prices showed stability throughout the quarter across the region. In addition, a renowned speciality chemical manufacturer, Lanxess announced acquisition of Emarald Kalama, which is a world’s largest Benzoic Acid manufacturer for USD 1.08 billion, that may improve the supply the chain of Benzoic Acid across the region.
For the Quarter Ending December 2020
North America
Consistent supply of feed Toluene was reported after the toluene disproportionation (TDP) units resumed operations at optimum capacities. The Benzoic Acid prices jumped in mid-November following high upstream rates and increasing demand for the technical grade material. Towards the end of the quarter, market supply remained tight due to boosted sentiments ahead of improved production rates at the downstream pharmaceutical companies.
Asia
The Benzoic Acid demand in Asia was assessed to be firm during the fourth quarter due to resumption of downstream production units with operating rates at pre-pandemic levels across countries like India and China. In order to make up for the loss incurred in H1 2020 many leading producers such as Eastman Chemical Company, having its Benzoic Acid production unit in Wuhan had shut its plant due to lockdown. The plant reported robust operations in Q4 2020 to meet the increasing product demand in the country. Demand levels rose across the Asian markets backed by increased consumption from the pharmaceutical sector as an active ingredient to develop antibacterial/antifungal ointments and tablets. Due to gradually increasing demand for Benzoic Acid in the region the prices remained strong during the fourth quarter which remained supplemented by hike in the prices of feedstock, toluene due to weaker supply in first half of the quarter. The Benzoic Acid prices across remained rangebound around USD 1420 per MT during 4th quarter.
Europe
The smooth growth curve in the Benzoic Acid demand was observed during the 4th quarter of 2020 across the European markets. However, rise in total Benzoic Acid exports during November from the western Europe was observed backed by surging demand from the Asian countries including China. With the approach of year-end holidays, offtakes remained impacted towards the end of the quarter. Also, swelling overall demand for food grade material was noted in November-December period.
