For the Quarter Ending September 2024
North America
The North American Benzoic Acid Excipient market experienced a notable price decline in quarter 3 of 2024, characterized by abundant supply and weakened local demand, particularly in pharmaceutical and preservative sectors. Several factors intensified this downward trend, including market oversupply, economic deceleration, rising competition from cheaper alternatives, and currency volatility.
Market dynamics prompted suppliers to adapt their strategies, resulting in reduced lead times. However, this failed to stimulate buying interest among regional purchasers. The U.S. market exhibited the most significant price volatility, recording a 10% decline between the first and second halves of the quarter.
The US market maintained an extremely bearish outlook throughout the period, with prices dropping from $1,860/MT to $1,670/MT CFR Houston from July to September 2024. This substantial decrease reflected the persistent negative sentiment and challenging market conditions that dominated the quarter. The combination of these factors created a sustained downward pressure on prices, highlighting the market's ongoing struggles with supply-demand imbalances in the regional market.
APAC
During Q3 2024, the APAC Benzoic Acid Exp market faced significant price deterioration, primarily influenced by excess supply conditions and subdued demand patterns. In China, prior months' heightened production activities resulted in substantial inventory buildup, creating a notable supply-demand disparity. The market dynamics were further strained by decreased consumption in downstream industries amid challenging economic conditions.
Chinese manufacturers resorted to competitive pricing strategies to manage surplus inventory, leading to reduced export prices across global markets. China basically emerged as a focal point of market volatility, recording a substantial 16% price decline between the first and second halves of the quarter. The market also confronted operational challenges due to facility shutdowns, which impacted regular supply patterns and hampered the trade activity.
The Chinese market maintained a consistently bearish trend, with Benzoic Acid USP FOB Shanghai prices falling from USD 1505/MT to USD 1270/MT From July to September. This significant price erosion highlighted the quarter's challenging market conditions, characterized by persistent oversupply, diminished demand, and aggressive price competition.
Europe
Throughout Q3 2024, the European region witnessed a period of declining prices for Benzoic Acid Exp, with Germany experiencing the most significant price changes. Various factors contributed to this downward trend, including decreased production costs driven by lower energy expenses and falling feedstock prices like Toluene. The market also faced subdued demand in key sectors such as food preservatives and pharmaceuticals, leading to oversupply challenges. To mitigate storage costs and inventory risks, enterprises in Germany began offloading their Benzoic Acid Exp stocks, intensifying the supply glut. The overall market sentiment leaned towards the negative, with trading remaining muted and prices decreasing by 13% from the first half to the second half of the quarter. Noteworthy disruptions and plant shutdowns further impacted the market dynamics, underscoring the challenging environment for Benzoic Acid Exp pricing in Europe.
In Germany specifically, the quarter ended with a price of USD 1530/MT for Benzoic Acid USP CFR Hamburg, reflecting the overall decreasing trend observed throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the Benzoic Acid Excipient market in North America experienced a noteworthy increase in prices with a steady drop witnessed in the beginning. In the USA particularly, the pricing environment was prominently marked by an upward trajectory. Seasonality played a minimal role, with the core drivers being sustained demand and constrained supply.
The quarter saw rising industrial activity and a significant resurgence in economic dynamics, driving robust demand for Benzoic Acid across diverse sectors such as preservatives, pharmaceuticals, and cosmetics. This demand surge was exacerbated by supply chain disruptions, notably plant shutdowns and logistical challenges, leading to reduced inventory levels. A pivotal factor was the persistent escalation in global energy costs, which directly impacted production expenses, compounded by surging fuel prices and higher operational costs for shipping carriers. These conditions strained supply chains, elevating import costs and creating a challenging environment for domestic market players. The correlation between the heightened industrial activity and rising prices was evident, reflecting a strong positive sentiment throughout the quarter.
However, prices of Benzoic acid excipient dropped steadily, echoing a parallel downturn seen in Chinese provinces depicting a significant exporter to the USA at the beginning of the quarter. On the supply side, the inventories for Benzoic Acid Excipient in the regional US market remain sufficient coupled with a steady drop in regional quotations arriving from downstream preservative sectors. This surplus was further compounded by the appreciation of the US Dollar, bolstering the downward trend in Benzoic Acid Excipient prices during the entire month of April 2024. As a result, the latest quarter-ending price was recorded at USD 1800/MT for Benzoic Acid USP CFR Houston. Overall, the quarter's pricing environment was decidedly positive, underpinned by strong demand, supply constraints, and escalating global energy costs.
APAC
In Q2 2024, the Benzoic Acid Excipient (Exp) market across the APAC region, particularly in the Chinese market exhibited a consistently positive pricing trend, driven by higher downstream purchasing, currency fluctuations, rising cost of transportation, etc. The quarter saw notable price increases due to persistent inquiries arriving from downstream industries, such as pharmaceuticals and food preservatives. Supporting this, escalating freight costs and higher crude oil prices also put upward pressure on production and transportation expenses, further driving up Benzoic Acid Exp prices. In China, where price changes were most pronounced, the market experienced significant upward movement. The post-Lunar New Year period saw a resurgence in production, but inventories remained tight due to persistent high demand and logistical issues. Manufacturers expanded their production capabilities, though at higher costs due to elevated feedstock and energy prices. Seasonal demand, driven by increased use of preservatives in food and beverages during summer, also contributed to the rise. Additionally, severe heatwaves also exacerbated the situation by increasing power consumption and operational costs for manufacturers. Overall, on average, the prices surged by 1.04% with a steady drop in the initiation i.e., April 2024. Hence, by the end of the quarter, prices reached USD 1500/MT for Benzoic Acid USP FOB Shanghai, reflecting strong market demand and constrained supply.
Europe
Moving on to other importing regions, such as the European market, particularly Germany, the second quarter of 2024 saw a steady increase in prices due to several key factors. Rising import costs from major producing countries, a rebound in regional demand—particularly in the preservative sector—and restricted product availability due to ongoing logistical issues contributed to this trend. Concerning the overall demand side, strong demand from downstream industries and deliberate price hikes by domestic suppliers, who aimed to benefit from previously accumulated inventories, contributed to a positive market outlook. Increased production costs, driven by higher global transportation expenses, further supported the upward pricing trend. Furthermore, geopolitical tensions and conflicts disrupted major shipping routes, causing delays and increased operational costs, especially affecting routes through Africa’s Cape of Good Hope and the Red Sea. Additionally, port congestion in Asia and container shortages worsened the situation, leading to higher freight costs. Additionally, with the rising incidence of product deterioration and changing climatic conditions, the demand concerning the various excipients surges, hence supporting an overall price rise for Benzoic Acid excipients. Overall, Benzoic Acid excipient prices increased by 1.56%, continuing a consistent upward trajectory throughout the quarter with a modest drop witnessed in the beginning following the trend of China considerably. While this decrease in the prices and trend was successfully balanced by the supply-demand side, Tith traders actively met the overall inquiries arriving from the end-users. Overall, by the end of Q2 2024, i.e., in June 2024, the imported price of Benzoic Acid USP CFR Hamburg in Germany reached USD 1700/MT.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Benzoic Acid Excipient Excipient market in North America exhibited complex pricing dynamics, shaped by a diverse range of factors. While the market experienced an overall increase in prices compared to the same quarter last year, the fluctuations were most pronounced in the United States.
The US market faced a mix of challenges including supply chain disruptions, geopolitical tensions, and rising raw material costs. Benzoic Acid Excipient prices in the US followed a seasonal trend, increasing during the cold and flu season. Plant shutdowns on the back of the Lunar New Year break in exporting nations, especially China, affected import momentum until mid-February 2024. Additionally, export restrictions ahead of the Red Sea dispute led to higher freight charges further affecting the overall market sentiments. Despite these challenges, overall market sentiment remained positive, compelling traders to accept goods at elevated costs. Additionally, financial support from the feedstock toluene further reinforced the Benzoic Acid Excipient market, impacting production costs and subsequently increasing the final product's cost until the final weeks of March 2024.
Overall, witnessing an overall optimistic trajectory, the quarter-ending price for Benzoic Acid Excipient CFR Houston in the USA was USD 1730/MT as of March. Demand from end-user preservative sectors remained high, primarily driven by long-term orders. These pricing dynamics reflect a complex interplay of supply and demand factors, market sentiment, and external influences such as plant shutdowns, shaping pricing trends in North America during Q1 2024.
APAC
During Q1 2024, Benzoic Acid Exp prices in the APAC region, notably China, showed a positive trend with minor fluctuations witnessed in January 2024. Starting with January, prices continue to decline coupled with weakened purchasing activity and higher stockpiles held among the merchants. Additionally, Western and Northern regions, including Europe, also saw fewer new orders post-holidays, thereby merchants opted for cost-saving strategies focusing on reducing prices and clearing excess stockpiles. Furthermore, declining Toulene prices further supported this trajectory. However, in February, China experienced a significant price surge for Benzoic Acid Excipients due to rebounded demand from domestic and international markets. Further, Lunar New Year celebrations led to a production slowdown, worsening supply constraints. Rising freight charges compounded logistical challenges, additionally limited the availability of material for export, and affected the overall trade momentum. While, post-holiday market reopening saw increased purchasing activities, boosting consumer confidence and sentiment, and driving prices upward. This trend continued into March, with sustained demand from regional and overseas markets. With markets resuming operations, there was a need to replenish inventories with fresh stock which also benefitted the trader as they were able to clear their inventories at a higher profits. Bulk procurement further fueled demand dynamics, aided by a drop in freight costs, providing opportunities for lower-cost goods procurement. As of the end of Q1 2024, Benzoic Acid Excipient USP FOB Shanghai recorded a stable price of USD 1455/MT, reflecting the overall stable pricing environment observed during the quarter.
Europe
Throughout the first quarter of 2024, Benzoic Acid Exp pricing in Europe, notably in Germany, mirrored the trajectory of its exporting nations, primarily China in the APAC region. Prices generally declined, with a slight rebound observed in the quarter's final month. Seasonal demand shifts in industries like food, pharmaceuticals, and cosmetics influenced market prices, leading to temporary demand reductions. Global overproduction in the previous quarter contributed to inventory oversupply and further price declines. Additionally, the Euro's devaluation against the US dollar added another layer of complexity, pressuring German traders and buyers and reducing importing activity. Heightened freight costs, particularly before the Red Sea dispute, limited new order follow-ups, indicating minimal market activity based on necessity until February. However, the prices rebounded steadily as Q1 concluded in March. Inventories remained sufficient, and shipments from exporting nations gradually increased. Ease in previousl escalated freight costs amid trade disruptions benefited importing nations, enhancing market activity and downstream production. Overall, Q1 2024 saw negative pricing dynamics for Benzoic Acid Exp due to oversupply, seasonal demand shifts, and currency devaluation. The latest price for Benzoic Acid USP CFR Hamburg in Germany stands at USD 1625/MT.
For the Quarter Ending December 2023
North America
Throughout the North American region, specifically in the United States, the prices of Benzoic Acid Excipient significantly declined in December, marking a substantial contrast to the continuous upward trend observed at the beginning of the fourth quarter of 2023, specifically in October, confronting the USA market trend and suggesting a small variation in pricing trajectory.
As of October 2023, the persistent increase in demand, notably from the food and beverage, pharmaceutical, and personal care sectors, contributed to an ongoing surge in the downstream consumption of Benzoic Acid Excipient. Furthermore, with the arrival of the winter season, the consumption of frozen foods tends to surge further which further influences the demand for products containing Benzoic Acid Excipient. Also, the cost of raw materials, such as toluene, remained stable but at higher levels, supporting the overall higher price trend for Benzoic Acid Excipient. This was further exuberated by ongoing global supply chain challenges, particularly shipping bottlenecks and port congestion witnessed during the middle of Q4. This led to logistical issues and delays in benzoic acid delivery from major exporting nations primarily China on the back of labor shortages ahead of weeklong holidays, resulting in a higher price during this month.
Furthermore, pharmaceutical industry consolidation contributed to increased demand for Benzoic Acid Excipient. Despite challenging economic conditions and high inflation, employers continued to hire, indicating market resilience. Rising import costs, due to the appreciation of the Chinese Yuan against the US dollar, supported higher Benzoic Acid excipient prices in November 2023. However, as December began, the North American region, particularly the USA, witnessed a significant drop in Benzoic Acid Excipient prices. Factors included potential overproduction in mid-2023, market anticipation of sustained high demand, and weakened cost support from the Toluene market due to low production costs, emphasizing the overall decline in Benzoic Acid Excipient prices.
APAC
In the APAC region, the Benzoic Acid Excipient market saw a sliding price trajectory during the current quarter of 2023 (Q4). In October 2023, the continuous demand surge as of previous month’s trend, followed by a slight rebound post the Golden Week holidays, heightened interest among downstream customers. Limited inventories held by suppliers and retailers, based on the previous month's market conditions, further fuelled purchasing sentiment, contributing to the price increase. Substantial bulk orders from foreign traders, driven by the festive season, led many buyers to expedite Benzoic Acid Excipient procurement, intensifying overall demand throughout the month. However, the prices of feed toluene dropped considerably as October ended, resulting in a narrowed spread chart, while the upstream crude oil market in China remained relatively stable. Additionally, the appreciation of the Chinese Yuan against the US dollar raised export prices for overseas buyers, and sustained overseas inquiries maintained a stable to higher market trajectory for Benzoic Acid Excipient across the Chinese market until the final weeks of November 2023. However, as we progress into December, marking the conclusion of 2023, FOB prices for Benzoic Acid Excipient witnessed a significant decline. This was attributed to the substantial overproduction of Benzoic acid in the preceding months, resulting in a notable accumulation of existing stockpiles, coupled with a sudden decrease in international quotations. Consequently, merchants opted to implement an inventory correction strategy. Manufacturers and traders, who had amassed significant inventories of Benzoic Acid earlier in the year, focused on depleting their stocks before the year-end. Additionally, new export orders across the Chinese market declined at the slowest rate in six months, with employment falling for the fourth consecutive month and at the fastest pace in seven months, indicating a pessimistic market outlook as December concludes.
Europe
During the fourth quarter of 2023 (October-December), the pricing trend for Benzoic Acid Exp in the European region remained elevated. Various factors influenced the market, leading to an increase in prices. The heightened demand from end-users played a significant role, prompting market participants to issue new quotations to replenish their stocks and meet customer needs. Additionally, the market situation was complicated by high energy costs in the region, contributing to the manufacturing expenses of Benzoic Acid Exp. Limited availability of supplies also contributed to the price surge, as German buyers and retailers focused on building higher stocks to ensure an ample supply and reduce the risk of potential shortages. Furthermore, trade disruption in the Red Sea had the potential to impact German import activities, leading to higher global prices. The rerouting of shipping vessels resulted in increased distances and longer journeys, causing importers like Germany to face higher shipping costs and ultimately raising the overall expense of goods until the final weeks of December 2023.
For the Quarter Ending September 2023
North America
The Benzoic Acid Excipient market across the North American region, primarily within the United States, continued to follow its positive market outlook for the entire third quarter of 2023. Based on market participants' analysis, the US Census Bureau reported a moderate rise in the Manufacturing Purchasing Managers' Index (PMI) for the United States, rising from 46.3 in June to 49 in July. This marks the second consecutive month where the PMI has exceeded 50, indicating growth in the manufacturing sector. Additionally, the consistent rise in preservative consumption in the food, pharmaceuticals, and other industrial sectors owing to the tenacious hot and dry weather across the United States led to a rise in the price of Benzoic Acid Excipient. Further supporting this, the cost of upstream Toluene prices was witnessed on the upper side throughout the entire third quarter of 2023, contributing to the positive market trend for Benzoic Acid Excipient. Furthermore, as we move towards August, the market participants within the region raised their selling prices due to a strong trend in the spot market. Concurrently, limited supplies from major exporting nations played a significant role in the upward trajectory of Benzoic Acid Excipient prices. Further supporting this, the rising cost of energy costs has added to the overall manufacturing expenses of Benzoic Acid Excipient and has contributed to the overall rise in its price. With this, the cost of Benzoic Acid Excipient ends September at $1618/MT, depicting a continuous stable trajectory.
Asia Pacific
Throughout the third quarter of 2023, the prices of Benzoic Acid Excipient continue to mimic their upward trend. With the commencement of July 2023, Benzoic Acid Excipient continues to sustain its optimistic market trend, i.e., remained on the North side due to a persistent increase in domestic demand and inquiries from foreign traders. Moreover, Typhoon Dokus and the current wet season have recently caused widespread flooding and landslides in China's northeast, which has had an impact on the operational activity of many commodities, including food preservatives, pharmaceutical excipients, and others. As a result, the accessibility of its final product, such as benzoic acid excipients, has decreased for both domestic and international traders, keeping its prices on the higher side. Additionally, moving toward August, the business environment across China did, at long last, begin to improve in August 2023. The data showed that China's consumer prices returned to positive territory as deflationary pressures eased amid signs of economic stabilization. It was the first time in the previous five months that both output and new orders increased, and the demand from the food and personal care industries continued to remain on the upper side, leading to a slight reduction in inventory levels. Additionally, in September 2023, the overall price trajectory for benzoic acid excipient was further supported by the steadily rising cost of upstream toluene and crude oil amid the production cut announcement by major oil-producing European nations, keeping the overall production cost on the upper side. With this, the overall market of Benzoic Acid Excipient ended Q3 with the price settlement at $ 1468/MT in China.
Europe
The consumption of Benzoic Acid Excipient within the Food and pharmaceutical industries continued to rise across the German market in the whole third quarter of 2023. As consumers continued to raise their requirements for Benzoic Acid Excipients, the market players rushed to secure their supplies, which prompted or provided an additional opportunity for the traders to sell their goods at a higher cost and acquire their profits from that. Moreover, another factor supporting the optimistic market trend for Benzoic Acid Excipient is the substantial rise in the values of its upstream toluene and corresponding Crude oil for the whole quarter. Moreover, the market trading atmosphere was strong as traders consistently raised their shelves and procured the end-product Benzoic Acid Excipients at a higher US dollar. This was due to the depreciation of the Euro against the USD. With this, the prices of Benzoic Acid demonstrated a persistent rise and were recorded at USD 1553 /MT in Germany at the end of September 2023.
For the Quarter Ending June 2023
North America
Across the North American region, the prices of Benzoic Acid Excipient depict a similar market trajectory throughout the second quarter as that of q1 2023. At the beginning of April, prices of benzoic acid decreased by 2% across the North American region. This trend continued until the mid-second quarter. The fluctuating upstream market of toluene and a steady decrease in domestic inquiries from downstream cosmetic, food, and pharma industries supported the decreasing price trend until May 2023. However, in the course of June, Benzoic acid excipient prices increased significantly across the region, reaching USD 1520/MT CFR Houston. One of the main reasons for the Benzoic Acid price increase in the United States in June 2023 was the change in climatic conditions. Some regions have warmer temperatures, while others have cooler temperatures. Hotter weather in certain regions can speed up the spoilage of foods and other products, leading to an increase in the demand for preservatives like benzoic acid in food, pharmaceutical, and other industries to inhibit the growth of harmful bacteria and fungi, resulting in spoilage of food.
Asia Pacific
The prices of Benzoic Acid excipients across the APAC region began the second quarter on the weaker side as the prices went down, demonstrating a declining price trajectory. The cost of Benzoic Acid excipient decreases slightly on account of weaker international inquiries. Moreover, a significant boost in manufacturing activity throughout the end of the first quarter resulted in higher availability of products with the merchants that balanced the overall request or demands that entered the market. On the other hand, by mid-Q2, the market was still bearish as the upstream toluene market was weakening. Towards the end of Q2, the prices started to recover, and the prices rose by more than 7% with the settlement at USD 1420/MT FOB Shanghai. The heat waves and humidity in the Chinese market led to higher spoilage of food products in the food industry. This increased the consumption of various preservatives in the domestic market, including benzoic acid excipient, which led to a significant price increase and shortage of this excipient among merchants this month. All in all, the second quarter of 2023 concluded with a stable incremented market for benzoic acid.
Europe
With the commencement of the second quarter, the prices of Benzoic Acid excipients dropped across the German market. The pricing chart for benzoic Acid excipient mimicked the trend of the APAC region. Reduction in sales within the domestic market pharmaceutical and food sector attributed to a weaker price trajectory of Benzoic Acids excipient in April. This trend was sustained until the end of May 2023. However, moving towards the end of Q2, the prices of Benzoic Acid demonstrated a significant hike of more than 7 percent and were recorded at USD 1485/MT CFR Hamburg. The appreciation of the Euro against the Chinese renminbi was one factor that supported the positive market momentum in June for Benzoic Acid excipients. As China is one of the major exports of excipients, its depreciation against Euro supported the suppliers and buyers of the germane market as the imported goods from China have become cheaper for German them, owing to which they restocked their inventories for Benzoic Acid at lower prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the price of Benzoic Acid Excipient in the North American region was extremely unstable. Prices demonstrate a decremented trend throughout Q1 2023 because of the weakened end-user demand supported by declined upstream toluene markets in the US. Growing concern for an economic slowdown worldwide has additionally affected the overall market trend for Benzoic Acid Excipients. Furthermore, Russia's anticipated decline in crude output, however, also had an impact on the Benzoic Acid Excipient market. Moreover, towards the termination of the first quarter of 2023, the price stabilized to some extent but at a level that balanced the overall domestic inquiries. With this, the prices of Benzoic acid Excipient were settled at USD 1490/MT in the United States.
Asia
In the first quarter of 2023, the Asia Pacific Benzoic Acid Excipient market continued to remain on the weaker side. Prices decreased in Q1 2023 as a result of low production costs coupled with lower end-user demand and higher inventories among the merchants. Moreover, the market players decide to lower their quotations to destock their existing inventories and replenish their shelves with fresh stocks. Also, upstream Toluene prices and the crude market further witnessed a gloomy market situation. Towards the end of the first quarter, the prices for Benzoic acid Excipient inclined at the same rate it decreased in the month of February and were recorded at USD 1385/MT in China. This was due to improved purchasing activity which was balanced by sufficient stockpiles among the retailers and suppliers.
Europe
During the first quarter of 2023, in the European region, primarily in Germany, the prices of Benzoic acid Excipients followed a downward trajectory. An unexpected downturn in upstream crude oil demand in the European market was one of the major factors that kept the market of Benzoic Acid Excipient in the southward direction. Additionally, there were no disruptions and supplies from exporting nations. The market was also kept afloat by the suppliers' ample inventories. With this, the prices for Benzoic Acid Excipient stabilized in the German market and were established at USD 1450/MT during the end of the first quarter.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, the Benzoic acid Exp market in North America experienced fluctuations. Prices began to climb in Q4 2022 and continued to do so throughout the second month of the fourth quarter due to high manufacturing costs, numerous logistical issues, and rising inflation. The US inflation Soar to 8.2% in the month of October 2022. Additionally contributing to the price fluctuation were rising transportation costs and port congestion at the major ports. However, Prices begin to decline later in the month of December as a result of weaker inflation (the US inflation rate was 7%, down from 8.2% in October) and decreased end-user sector demand as the holiday season approaches. In December, the Benzoic acid Exp settlement price fell to USD 6392/MT CFR in Los Angeles.
Asia
The Benzoic acid Exp market in the fourth quarter of 2022 in Asia Pacific was very volatile. Price increases were observed up until the first month of the quarter as a result of increased end-user sector demand, various logistical difficulties, and rising inflation. Both the 2.8% increase in China's consumer price index and the 0.9% increase in the Producer Price Index (PPI) had an effect on the market. Investor confidence and the country's economic operations have both been significantly impacted by China's "Zero-Covid" policy to date. Due to growing production costs driven by rising energy prices as well as increased domestic production to meet demand from both domestic and international markets, the market remained competitive. Later in November, as domestic merchants had sufficient stock on hand, Benzoic acid Exp prices did begin to decline. Also, the feedstock toluene and sodium benzoate prices were recorded to decline to keep the market feeble. The market's ongoing decline was also influenced by the policies being relaxed and the weak downstream demand. In December, the settlement price for Benzoic acid Exp. fell to USD 2050/MT FOB Shanghai.
Europe
Prices for Benzoic acid Exp in the fourth quarter of 2022 demonstrated turmoil across the European continent. In the first months of Q4 2022, supply disruption and persistent port congestion in the European region led to price increases. Additionally, in October 2022, the annual inflation rate in Europe increased to 10.6% from 9.9% in September. Due to the impending Christmas season, retailers in Europe have decided to restock their inventories substantially. However, prices decreased dramatically in the month of November and December on the back of a fall in inflation (The euro area annual inflation rate was 10.1%, down from 10.6% in October), relief from port congestion, a slight increase in existing inventories among the merchants, and a considerable decrease in the freight charges keeping the market at ease. The market remained weak as a result of falling feedstock toluene and sodium benzoate price. The cost of Benzoic acid Exp was USD 6460/MT CFR Hamburg toward the end of Q4 2022.
For the Quarter Ending September 2022
North America
At the commencement of the third quarter of 2022, Benzoic acid Excipient prices showcased an oscillating trajectory due to the wobbling demand from downstream industries, such as food preservatives and pharmaceutical industries. At the onset of Q3 2022, the prices of Benzoic acid Excipient increased considerably following increased raw material Toluene prices and surging freight charges in the US market. Later in the second half of Q3 2022, the price started to drop gradually owing to stable market demand and enough inventories in the domestic market. Towards the end of Q3 2022, the prices were recorded to be USD 2190/MT CFR Houston with an average quarterly inclination of 2.18%.
Asia
In the third Quarter of 2022, Benzoic acid Excipient prices showcased an oscillating trajectory due to variable prices throughout the quarter. At the onset of the first half of Q3 2022, the Benzoic acid Excipient prices continued to rise radically owing to escalating demand in the Asia Pacific region. Another reason for this significant surge in the price was the increased feedstock Toluene and Sodium benzoate values. Also, increased energy costs affected the Benzoic acid Excipient prices in the regional sector. By the end of Q3 2022, the Benzoic acid Excipient experienced a sudden drop in cost due to decreasing raw material prices and lowering demand from the food and pharmaceutical sector. Towards the end of Q3 2022, the prices were recorded to be USD 2020/MT FOB Shanghai with an average quarterly inclination of 1.73%.
Europe
At the beginning of the third quarter of 2022, Benzoic acid Excipient prices experienced a fluctuating trend in the European market because of uprising demand from the regional sector. At the beginning of the first half of Q3 2022, the price fluctuated towards the upper end, owing to steady demand, and increased raw material Toluene prices. The price decreased in the middle of Q3 with lower demand and enough existing inventories. At the end of Q3 2022, the values accessed at USD 2420/MT with a quarterly inclination of 0.61%. The energy crisis and rising energy costs kept the Benzoic acid Excipient market sentiments to be strong.
