For the Quarter Ending September 2024
North America
In the third quarter of 2024, Sodium Methyl Paraben prices in North America, especially in the U.S. market, experienced a notable surge. Several factors contributed to this increase, including rising domestic and international demand, which exerted upward pressure on prices. Additionally, supply constraints from major exporting regions exacerbated the situation, with plant shutdowns in key production facilities tightening the supply chain and resulting in low inventories.
Production costs also increased significantly, driven by natural disasters and geopolitical events. Moreover, the depreciation of the U.S. dollar against other currencies led to higher import costs, further fueling price escalation. While ocean freight rates from Asia to the U.S. have slightly eased, fluctuating fuel and logistics costs continue to pose challenges to the supply chain.
Overall, the pricing environment for Sodium Methyl Paraben in Q3 2024 was overwhelmingly positive, with a robust increase in prices throughout the quarter. By the end of the quarter, the price settled at USD 6,695 per metric ton CFR New York.
Asia Pacific
During the third quarter, the market demonstrated increased sensitivity to supply-demand dynamics, significantly influenced by strong regional and international quotations. The appreciation of the Chinese yuan against the US dollar enhanced export competitiveness, contributing to rising prices. Additionally, the raw material market experienced price increases due to unexpected shutdowns at methanol plants, which affected production costs.
In September 2024, Sodium Methyl Paraben prices surged, driven by several supply chain challenges. Key factors included reduced stock levels among major producers and robust demand growth in both domestic and international markets. The situation was further complicated by China's worst typhoon in 75 years, which disrupted shipping operations and caused berth delays of 36 to 60 hours. These disruptions led to transportation bottlenecks, increased freight costs, extended lead times, and inventory shortages. Global logistics challenges strained supply, contributing to inflationary pressures and higher export prices in the international market.
Moreover, the depreciation of the dollar against the Chinese yuan increased import costs for buyers, benefiting traders through improved sales margins. The quarter concluded with a substantial price increase, reaching USD 6455/MT FOB Shanghai, reflecting an average quarterly incline of 1.25%. This underscores a positively increasing pricing environment despite the various disruptions and challenges encountered during the quarter.
Europe
In Q3 2024, the Sodium Methyl Paraben market in Europe experienced a significant upward trend, driven by complex global dynamics affecting supply chains and market sentiments. Key factors behind the price surge included rising production costs in major manufacturing regions, increased demand from various industries, and currency fluctuations impacting import expenses. Additionally, uncertainties in raw material prices were exacerbated by disruptions and maintenance shutdowns at key production facilities, contributing to further price increases. Germany, in particular, saw the most substantial price changes, mirroring the overall market trend, with prices consistently climbing throughout the quarter.
The logistics landscape presented additional challenges, as freight rates on major Asia-Europe trade routes declined. Shipping costs from China to Northern Europe fell by approximately 9%, with the rate for a 40-foot container dropping to $3,848. However, disruptions caused by a typhoon at the Shanghai port led to delays in the arrival of critical components for European production, intensifying inventory management pressures.
Despite improvements in production levels, the inflow of new inventory remained limited, constraining supply and heightening market pressures. These fluctuations underscore the dynamic nature of the market, showcasing a favorable pricing environment. As Q3 concluded, the price settled at USD 6,790 per metric ton of Sodium Methyl Paraben CFR Hamburg in Germany, marking a strong end to the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American market for Sodium Methyl Paraben experienced notable price increases driven by multiple interconnected factors. Supply chain disruptions, including a significant plant shutdown and global maritime issues that affected vessel traffic, exacerbated market strains. These disruptions were compounded by bottlenecks and logistical challenges, leading to higher freight rates, container shortages, and increased operational costs.
The market faced intensified supply constraints due to soaring demand from downstream industries and insufficient inventories. This imbalance between supply and demand enabled suppliers to adjust prices upward, capitalizing on the prevailing market conditions. Additionally, depreciation of the local currency further exacerbated import costs, adding complexity to the pricing landscape.
In the USA, the impact was pronounced with a consistent upward trend in prices throughout the quarter. Seasonal factors, such as an early peak shipping season and delays related to port labor issues, further elevated prices. The quarter-end price for Sodium Methyl Paraben CFR New York was USD 6630/MT, reflecting a modest average quarterly increase of 0.88%. Despite some fluctuations, the market remained robust, underscoring a challenging yet opportunistic environment marked by persistent supply constraints and strong demand.
Asia Pacific
In Q2 2024, the Sodium Methyl Paraben market in the APAC region exhibited stable pricing In the latest quarter, the market exhibited moderate fluctuations, primarily driven by consistent demand and supply dynamics. Robust downstream demand coupled with stable production rates and strategic inventory management characterized the period. Market participants adopted a cautious yet optimistic stance, effectively balancing procurement with anticipated seasonal demand shifts. The market's steadiness was further supported by well-managed inventories and the absence of significant disruptions such as plant shutdowns.
China experienced the most notable price variations, though the overall trend remained relatively stable. Seasonal factors influenced early summer demand, which aligned with increased production costs. However, these pressures were counterbalanced by strategic destocking and competitive pricing strategies. The comparison of prices between the first and second halves of the quarter showed minimal fluctuations, underscoring a stable market sentiment despite minor oscillations.
Overall, prices saw a slight increase, with the quarter-ending price at USD 6220/MT FOB Shanghai, marking an average quarterly rise of 0.38%. This reflects a stable pricing environment and confirms that the market sentiment for Sodium Methyl Paraben in Q2 2024 remained positively stable.
Europe
In Q2 2024, the Sodium Methyl Paraben market in Europe experienced significant price increases due to a confluence of factors. Rising production costs, driven by higher fuel prices and increased operational expenses for carriers, contributed to upward pressure on market prices. Additionally, supply chain disruptions—exacerbated by the Panama Canal drought and geopolitical tensions in West Asia—led to logistical challenges, including container shortages in some regions and surpluses in others. These disruptions intensified price volatility, further complicated by the depreciation of the US dollar, which affected importers' cost structures.
Germany, in particular, saw the most pronounced price fluctuations. The country's inflation rate exceeded expectations, leading to higher costs for goods and services, which were then passed on to consumers. This inflationary environment, combined with seasonal demand increases from downstream sectors, boosted procurement interest and purchasing activities. However, persistent supply-side constraints, including low inventories and logistical bottlenecks, constrained the market.
By the end of Q2 2024, Sodium Methyl Paraben prices in Germany had risen to USD 6540/MT CFR Hamburg, reflecting a 0.73% average quarterly increase. This price movement underscores a positive pricing environment driven by constrained supply and strong demand, despite ongoing market challenges.
For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the sodium methyl paraben market in North America experienced a generally declining trajectory. Market prices fluctuated, with a notable trend being observed. The latest quarter-ending price for Sodium Methyl Paraben CFR New York in the USA was USD 6460/MT, showing an average quarterly decline of 1.29%.
Key factors affecting these prices included supply and demand dynamics. While there was a moderate to high supply of Sodium Methyl Paraben, demand from downstream sectors remained relatively low to moderate, resulting in a slightly weakened pricing environment. Global market dynamics, particularly changes in China's pricing strategies and reduced international demand, also influenced US market prices. The strength of the US dollar against other currencies facilitated advantageous import opportunities. Market players engaged in inventory management practices as the quarter ended, aiming to destock inventories and prepare for replenishment with fresh supplies, which helped optimize inventory levels and maintain market liquidity.
However, prices did increase steadily in January due to geopolitical tensions and trade disruptions. Export challenges, such as shipping lines rerouting ships to avoid the Red Sea, led to higher shipping costs, order cancellations, delays in container movement, and an uncertain outlook. Container freight rates also impacted industries reliant on maritime transport. Additionally, the prices of the raw material methanol were decreasing during this period.
Asia Pacific
Throughout Q1 2024, the pricing landscape for Sodium Methyl Paraben in the APAC region witnessed significant fluctuations, largely influenced by several key factors. The quarter concluded with Sodium Methyl Paraben FOB Shanghai in China priced at USD 6150/MT, showcasing a 0.78% average quarterly increase.
This rise was primarily driven by heightened demand both domestically and internationally, prompting suppliers to adjust their pricing strategies to capitalize on this trend. The market experienced a notable and consistent upward price trajectory, supported by the depreciation of the Chinese currency against the USD. Buyers adopted a cautious approach, delaying orders, which momentarily stabilized the surge. However, initial order fulfillment led to tight stock levels, further fueling price hikes. Geopolitical tensions and trade disruptions added complexity, causing shipping delays and increased costs. By March, an oversupply emerged, prompting suppliers to decrease prices to clear excess inventory. This drop was also facilitated by freight charges normalizing after being inflated due to geopolitical issues, easing financial pressures.
However, towards the end of Q1, despite the price decrease, the market remained relatively unchanged as a surplus of Sodium Methyl Paraben persisted, prompting suppliers to further lower prices to manage excess stock. To address this oversupply, discounts were offered to incentivize bulk purchases, aiming to boost demand and prepare for future restocking. The normalization of freight charges also played a role in the continued price decline, alleviating cost pressures and contributing to the overall decrease.
Europe:
The pricing dynamics of Sodium Methyl Paraben in the European market during the first quarter of 2024 have been influenced by various factors. By the end of the quarter, the latest price for Sodium Methyl Paraben CFR Hamburg in Germany stood at USD 6400/MT, showing an average quarterly decline of 1.98%.
Overall, there has been a negative pricing trend, with prices showing a decrease compared to the same period last year. This decline is primarily attributed to significant price reductions seen in key exporting regions, notably the Asia-Pacific (APAC) region, which has had a notable impact on global Sodium Methyl Paraben markets. During this quarter, the market experienced a substantial price decrease due to reduced demand from downstream sectors and the Euro's depreciation against the USD, leading to higher costs of imported goods. Additionally, seasonal factors such as pre-Lunar New Year and spring holidays in exporting nations have prompted market participants to destock inventories at discounted rates, further contributing to the price decline.
Although there was an initial price increase in January, attributed to supply chain disruptions like shipping line rerouting and disruptions in the Red Sea region, prices decreased overall within the quarter compared to the previous one in 2024.
For the Quarter Ending December 2023
North America:
The Sodium Methyl Paraben 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 Methanol—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 Sodium Methyl Paraben 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 Sodium Methyl Paraben 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. Sodium Methyl Paraben 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 Methanol prices. Throughout December, Methanol prices persistently dropped due to continuously decreased demand. Given Methanol's critical role as a raw material for Sodium Methyl Paraben production, its reduced prices intensified the broader downward trend in Sodium Methyl Paraben prices. The quarter ended with a Sodium Methyl Paraben price of USD 6720/MT CFR New York in the USA with an average quarterly decline of 3.15%.
Asia Pacific:
The Sodium Methyl Paraben market in the APAC region encountered notable challenges in the fourth quarter of 2023, characterized by significant price fluctuations. Various factors influenced market dynamics during this period. Initially, at the onset of Q4, prices rose due to increased demand from end-users. Simultaneously, a decrease in production capacity among Methanol manufacturers resulted in constrained supplies and limited inventory. The market saw a surge in demand from end-users, driven by the "golden September" and "silver October" seasons. This sudden demand spike, fueled by concerns of shortages, led to increased production costs for Sodium Methyl Paraben. Manufacturers had to adjust their pricing strategies to maintain profitability. Additionally, strategic bulk buying by market players aiming to replenish their stocks contributed to the price surge.
However, as November unfolded, there was a notable decrease in Sodium Methyl Paraben demand, resulting in excess inventory and a subsequent price decline. This decrease was mainly attributed to the sluggish economic recovery in China, a key consumer of Sodium Methyl Paraben. Furthermore, the continuous decline in the prices of the raw material Methanol, used in Sodium Methyl Paraben production, further contributed to the overall decrease in prices. Supply constraints were also observed as manufacturers operated at reduced capacities.
In China, Sodium Methyl Paraben prices depreciated by an average of 0.48% quarterly. The domestic market faced an oversupply of local goods and sluggish trade orders, leading to 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 Sodium Methyl Paraben price of USD 6010/MT FOB Shanghai.
Europe -
In the last quarter of 2023, the European Sodium Methyl Paraben market encountered various challenges that had an impact on pricing. Initially, as October commenced, there was a significant decrease in the demand for Sodium Methyl Paraben 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 Methanol, decreased during this period, leading to lower production costs for Sodium Methyl Paraben manufacturers. These cost reductions were passed on to consumers, further contributing to the price decline. Notably, the Germany witnessed the most substantial price changes in the region, with its market remaining constrained, featuring moderate supply and demand.
In summary, the European Sodium Methyl Paraben market faced a challenging quarter, characterized by diminished demand and an oversupply that led to a decline in prices. The quarter ended with a Sodium Methyl Paraben price of USD 6800/MT CFR Hamburg in Germany with an average quarterly decline of 1.86%.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, there was a significant devaluation in the North American Sodium methyl paraben market. From July to September, the prices for Sodium methyl paraben delivered to CFR New York fell from $7615 per metric ton to $7410 per metric ton, marking the end of the quarter. These price drops clearly indicated a preference for lower prices, resulting in an average quarterly decrease of 2.23%. The global Sodium methyl paraben market faced an oversupply issue during this period, leading to a substantial decline in market values. Additionally, domestic traders strategically built up large inventories of Sodium methyl paraben. To minimize potential losses, these traders adopted a strategic approach by lowering their price quotes, further contributing to the overall decline in market prices. Despite a slight slowdown in inflation in the third quarter, primarily due to significant economic changes in the United States, market participants remained cautious because of the Federal Reserve's decision to raise interest rates. Furthermore, North American countries, which are the main importers of Sodium methyl paraben, closely followed the pricing trends observed in the Chinese market, where China serves as the primary exporter. Consequently, the third quarter of 2023 presents a unique opportunity for both businesses and consumers to take advantage of the reduced prices of Sodium methyl paraben in the North American market.
Asia Pacific
In the third quarter of 2023, the Sodium methyl paraben market saw a significant and positive transformation. Prices experienced a decline, going from $6090 per metric ton in July to $6100 per metric ton FOB Shanghai in September. This resulted in a noteworthy quarterly average decrease of 0.33%. This price shift was primarily due to substantial reductions in Sodium methyl paraben prices, driven by a significant drop in domestic demand from end-users. Additionally, the import of raw materials at competitive rates and in large quantities played a crucial role in shaping the market's direction. The backdrop to this price decrease was heavily influenced by economic conditions, particularly in China, the world's second-largest economy. China went through an economic slowdown that extended from the first half of 2023 into the second half, which cast a shadow over the beginning of the third quarter. This slowdown can be attributed to a combination of factors, including increased deflation, a rise in youth unemployment, and weakened foreign demand. Regarding manufacturing, Sodium methyl paraben production in China closely followed customer demand, adapting to the ever-changing market dynamics. During this period, a significant decline in demand was observed, not only in the domestic market but also in international markets. This synchronized decrease in demand further solidified the market dynamics in the third quarter.
Europe
In the third quarter of 2023, we witnessed a significant transformation in the pricing trends of Sodium methyl paraben. Prices went down from $7380 per metric ton in July to $7200 per metric ton CFR Hamburg by September, indicating a substantial decrease with an average quarterly decline of 2.12%. This change was primarily triggered by an oversupply of Sodium methyl paraben worldwide, which put downward pressure on its market value. To complicate matters, domestic traders chose to accumulate substantial inventories of Sodium methyl paraben. In order to proactively address this challenge and reduce potential losses, they strategically decided to reduce their price quotes, thus contributing to a broader devaluation of the market. Additionally, the European market, a major importer of Sodium methyl paraben, and China, a leading exporter, closely monitored the pricing trends in the Chinese market. Furthermore, consumer sentiments shifted due to rising inflation and increasing interest rates. Consequently, this price decline reflects the broader dynamics of the global market.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the U.S. market for Sodium Methyl Paraben witnessed oscillation. The price was recorded at the end of Q2 2023, with an average quarterly inclination of 1.39%. 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. Due to a significant surge in downstream demand and a decrease in merchant stockpiles. Moreover, as per the market experts, the trade from the exporting nation was noticeably strong during this month which further kept the market sentiments in the upward direction. Since the zero-tolerance policy was abandoned, trade between Asia and the US has increased. There was a mild shortage of sodium methylparaben on the shelves of domestic warehouses because of the increasing demand from end-user suppliers. Later, The US Sodium Methyl Paraben market was sluggish in June due to decreased demand from downstream industries. Weakening demand led to excess inventory, forcing suppliers to lower prices. The ongoing economic instability in the US and rising global inflation have also contributed to the decline in demand. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers.
APAC
The Sodium Methyl Paraben market in the second quarter of 2023 in the Asia Pacific region showcased a mixed trajectory. The price was valued and accessed at the end of Q2 2023, representing an average quarterly incline of 1.99%. From the commencement of Q2 till the end of the second month of Q2, the Sodium Methyl Paraben market showed significant price inflation due to soaring domestic and international orders. The upward trend was largely driven by the increase in demand from end-use industries, including the food and beverage sectors. Also, increased production rates in order to refill the inventories with fresh stock and to cater to the upcoming demand market situation remained strong. Also, the OPEC+ surprise cut announcement and rebounding China demand outlook have propelled the Sodium Methylparaben market to be strong. Inflation is also a factor in the rising prices of Sodium Methylparaben. The cost of raw materials, labor, and transportation have all increased in recent months, which has led to higher prices for Sodium Methylparaben. The cost of crude oil, which is a raw material used to make Sodium Methylparaben, has increased significantly in recent months. The cost of labor has also increased, as workers demand higher wages to offset the rising cost of living. The cost of transportation has also increased, as shipping rates have risen due to increased demand and decreased capacity. Later, in June Sodium methylparaben prices showed downward momentum in the Chinese market due to a weaker demand outlook. Demand for sodium methylparaben from downstream food & beverage, pharmaceutical, and textile industries declined as uncertain economic conditions and rising inflation halted trading processes. Inventories of sodium methylparaben increased as the company increased production rates. Ingredient suppliers offered methylparaben sodium cheaply in the spot market, thus reducing cost support. Sources from key market participants said buyers were shying away from large orders out of fear of further price declines.
Europe
In the second quarter of 2023, the Sodium Methyl Paraben in the European market saw fluctuations. At the termination of Q2 2023, the settlement price for Sodium Methyl Paraben was recorded with an average quarterly decline of 0.93%. With the inception of the second quarter, prices inflated backed by a supply-demand gap. Sodium methylparaben's price trajectory had a major upward trend. The market's fundamentals revealed that rising domestic demand was the main driver of higher prices for sodium methylparaben in April. The market in Germany will likely be driven by new production in exporting nations in response to rising demand and high energy prices. Also, the surprise cut announcement for oil output by the OPEC+ members further influenced the market situation positively. Increase energy prices, hiked-up production costs, and raging shipment charges kept the market situation strong. Later in the third month of Q2, the supply of Sodium Methylparaben remained surplus as the production from major manufacturers remained high. The mills were forced to provide Sodium Methylparaben at lower prices for the consumption of left-off products. There is no restocking going on as the inventories are already full and firstly, they need to be consumed for further fluent trade of Sodium Methylparaben.
For the Quarter Ending March 2023
North America
The price of Sodium Methylparaben in the North American region was generally declining in the first quarter of 2023. Prices were much lower at the beginning of the quarter due to weak domestic demand in Q1 2023. The high amount of inventory that domestic retailers held among themselves had a negative impact on the market situation. The decrease in production costs, which was brought on by weak demand from the downstream industry and an exporter excess, also influenced the prices of Sodium Methylparaben. With the demand also stabilizing, prices in the month of February stabilized on the positive side. Sodium Methylparaben values were found at USD 8290/MT CFR New York at the end of the first quarter, with an average quarterly decline of 0.38%.
APAC
In the first quarter of 2023, the Sodium Methylparaben market in the APAC region showed a generally steady increasing trend. Due to weak domestic demand during Q1 2023, prices were slightly lower at the start of the quarter. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. At the conclusion of the first quarter of 2023, Sodium Methylparaben values were discovered to be USD 5780/MT FOB Shanghai, with an average quarterly increase of 1.01%. Due to heightened demand from both domestic and foreign markets later in the month of February, prices rose dramatically. Also, increased production rates further added to the optimistic trend.
Europe
In the first quarter of 2023, the Sodium Methylparaben market in Europe had a general downward price trend. Due to weak domestic demand during Q1 2023, prices were significantly lower at the start of the quarter. The market scenario was adversely affected by the large amount of inventory that domestic retailers held among themselves. The prices of Sodium Methylparaben were also impacted by the decline in production cost, which was a result of weak demand from the downstream industry and an exporter surplus. The prices in the month of February stabilized on the positive end, backed by stabilization in the demand outlook. Sodium Methylparaben values were found at USD 7920/MT CFR Hamburg at the end of the first quarter, with an average quarterly decline of 0.18%.
For the Quarter Ending December 2022
North America
The US domestic market for Sodium Methyl Paraben had a drop in the fourth quarter of 2022. Due to declining demand from downstream businesses like the food additives sectors, prices decrease throughout the first half of the quarter, particularly during the first month. In addition, prices started to drop after the second month got underway due to a drop in demand and a sufficient amount of market inventory. Prices continued to fall in the second half, second month, and final month of the quarter because of traders' sustained demand and low stock levels. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8390/MT for CFR New York in December.
APAC
In the fourth quarter of 2022, the cost of Sodium Methyl Paraben in the Asia Pacific area showed a fluctuating pattern. The price of sodium methylparaben dropped in the domestic Chinese market as demand from the end-user food and beverage sectors was weak during the first half of the quarter but then stabilized during the second half. Due to the continually falling prices, the stock level on the domestic market fell even more in the second half of the quarter, particularly in the last month. Toward the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 5610/MT for FOB Shanghai in December.
Europe
In the fourth quarter of 2022, the domestic market for Sodium Methyl Paraben in Europe displayed an inconsistent pattern. Prices declined throughout the first month of the quarter and during the first half of the quarter as a result of decreased demand from downstream industries like the food additives sectors. Additionally, prices began to decline following the start of the second month as a result of a decline in demand and an adequate supply of market inventory. Due to traders' persistent demand and low stock levels, prices fell for the remainder of the quarter, including the second and final months. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 7965/MT for CFR Hamburg in December.
For the Quarter Ending September 2022
North America
The US's Sodium Methyl Paraben market showed an erratic pattern in the third quarter of 2022. Prices grew throughout the first half of the quarter, especially during the first month, because of increasing demand from downstream industries, such as the food additives sector. Additionally, once the second month began, prices began to decline because of a decline in demand and an adequate supply of inventories in the market. Due to persistent demand from traders and low stocks, prices were raised again in the second half, second month, and final month of the quarter. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8860/MT for CFR New York in September.
APAC
The price of Sodium Methyl Paraben in the Asia Pacific region showed a varying tendency in the third quarter of 2022. As demand for the product from the end-user food and beverage sectors was low during the first half of the quarter but later steadied during the second half in China, the price of sodium methylparaben decreased in the domestic Chinese market. The stock level in the domestic market further declined in the second half of the quarter, especially in the last month, as a result of the prices consistently declining. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 5690/MT for FOB Shanghai in September.
Europe
In the third quarter of 2022, Europe's domestic market for Sodium Methyl Paraben displayed an inconsistent pattern. Due to rising demand from downstream businesses like the food additives sectors, prices increased during the first half of the quarter, particularly in the first month. In addition, prices started to drop after the second month got underway due to a drop in demand and enough market inventory. Prices increased once more in the second half, second, and final month of the quarter because of traders' sustained demand and low stock levels. Towards the end of the quarter, the prices for Sodium Methyl Paraben were assessed at around USD 8170/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
The US domestic market for Sodium Methylparaben showcased a positive trend during the second quarter of 2022. The import of Sodium Methyl Paraben into the US, which was already experiencing significant port congestion, was drastically made worse by the reappearance of COVID in China's commercial areas. Domestic traders and customers continued to express concerns about the high cost of food chemicals throughout the quarter due to various issues, such as the US's soaring inflation, the geopolitical unrest in Russia and Ukraine, and the wildly fluctuating nature of oil prices. The region's downstream food and confectionary industries continued to experience strong demand over time.
APAC
In the second quarter of 2022, the price of Sodium Methylparaben in the Asia Pacific region showcased a declining tendency. In the domestic Chinese market, the cost of sodium methylparaben dropped by 2.83 percent from April to June, while it dropped by 5.13 percent in the Indian market. Demand for the product from the end-user food and beverage sectors was low during the first half of the quarter but later stabilized during the second half in China. The supply of Sodium Methylparaben into and out of the country was significantly affected by an increase in COVID cases in China's major provinces, and the country's zero-COVID policy forced the ports to close causing port bottlenecks. Throughout the quarter, the tolerance policy persisted in disrupting supply and production. Additionally, the limitations made it incredibly challenging for goods to travel across the country and to crucial ports for international trade.
Europe
In the European region, the market for Sodium Methylparaben showcased a positive trend during the 2nd half of the quarter. Demand-wise, Offtakes in the end-user food and beverage industries remained firm over the quarter. Local merchants in the European market had abundant inventory to meet downstream demand. The conflict between Russia and Ukraine continued to drive up shipping costs and slow the flow of products into Europe, but it also made it more challenging for exporting nations to conduct business. A shortage of empty cargo containers and Russia's invasion of Ukraine severely disrupted global trade, further surging the cost of shipping goods from China to Europe.
For the Quarter Ending March 2022
North America
Prices of Sodium Methyl Paraben dropped in the North American Market during the 1st quarter of 2022, on the back of weak downstream demand. Due to rising awareness over hazardous effects of Paraben on human health and skin, people were heard avoiding products containing Paraben in them, which consequently led to the decreased demand of Paraben from various end-user industries. Furthermore, owing to lower number of enquiries, the inventories remained full throughout the quarter, which resulted in price drop of Sodium Methyl Paraben. In USA, the prices of Sodium Methyl Paraben settled at USD 5080/MT CFR New York in the month of January, which continued the fall till March.
Asia Pacific
Asia-Pacific region witnessed a downfall in the prices of Sodium Methyl Paraben during the quarter 1 of 2022, backed by the fall in downstream demand. As the concerns regarding Paraben consumption increased during the considered period, offtakes of Sodium Methyl Paraben fell from the consumer end. Meanwhile, because of enhanced prevalence of Paraben-free products, more and more brands started manufacturing cosmetics without Paraben, which further decreased its consumption in end-user industries. Conclusively, the evaluated prices of Sodium Methyl Paraben IP at FOB JNPT were USD 6474/MT during the month of January, which showcased continuous fall till March.
Europe
In line with the trend of North America and Asia-Pacific region, prices of Sodium methyl Paraben fell in the European market during the 1st quarter of 2022, on account of decreased demand from end-user industries. As the consumer preferences grew in favor of Paraben-free products, the consumption of Sodium Methyl Paraben dropped in the downstream industries. Besides, insufficient offtake kept the inventories overflowing with supplies, which further declined the prices of Sodium Methyl Paraben throughout the quarter in Europe. In Germany, the prices of Sodium Methyl Paraben assembled at USD 4330/MT FD Hamburg in the month of January, which decreased continuously till March.
