For the Quarter Ending September 2024
North America
In Q3 2024, the Sorbic Acid market in North America experienced a substantial upward trend, driven by several interrelated factors. Global demand surged, intensifying pressure on supply chains already constrained by limited exports from key producing regions.
Heightened production costs, particularly for raw materials and energy, combined with logistical disruptions, further exacerbated supply issues. In the U.S., the market exhibited the most pronounced price increases, fueled by strong demand across multiple sectors and anticipatory procurement activity ahead of expected facility closures. Seasonal influences, along with geopolitical tensions and currency fluctuations, further supported this price escalation, boosting the need for various excipients across the food industries, further supporting an overall upward trend. External economic factors, including the depreciation of the US dollar against the Chinese yuan and increased freight rates, further inflated import costs.
However, the market witnessed a steady drop in the middle of the quarter. Various market experts witnessed that the consumption from the downstream pharmaceutical and solvent industries demonstrated a steady drop, thereby affecting the overall supply-demand dynamics. These price movements were further driven by indications of weak neighboring region demand and a reduced market trading atmosphere.Despite these fluctuating trajectories, the overall prices of Sorbic acid across the United States when compared to the previous quarter, showed a marked rise, with consistent quarter-over-quarter growth of more than 2% with Sorbic Acid prices reaching USD 3165 /MT, reflecting the sustained positive pricing momentum at the end of Q3 2024.
Asia Pacific
In Q3 2024, the APAC region saw a steady upward trend in Sorbic Acid prices, driven by multiple factors. A resurgence in demand across the region, combined with improved market sentiment and stable supply levels, contributed to a favorable pricing environment. International demand also played a pivotal role, bolstering the market as global buyers sought higher volumes of Sorbic Acid. Supply chain disruptions and limited product availability further tightened the market, supporting price hikes throughout the quarter. China experienced significant price fluctuations, with the overall trend leaning towards higher prices, reflecting broader global market dynamics. Seasonal factors and price correlations shaped the pricing landscape, as internal and external influences converged to drive market behavior. When compared to the previous quarter, there was a substantial quarter-on-quarter price increase, indicating strong market performance. A quarter-on-quarter price rise of 2% emphasized the continued upward momentum in pricing for Sorbic Acid. By the end of Q3, the price of Sorbic Acid FOB Shanghai settled at USD 2920 per metric ton, showcasing the overall positive sentiment that defined the market throughout the quarter.
Europe
In Q3 2024, the European market for Sorbic Acid experienced a significant upward trajectory in pricing, paralleling trends observed in other importing countries. This increase was primarily fueled by robust demand across various sectors, compounded by supply chain disruptions and plant shutdowns that constrained availability. The resultant scarcity of products was further intensified by escalating freight costs and rising operational expenditures, both of which contributed to the upward pricing pressure. Stricter regulatory frameworks and enhanced quality control measures imposed additional burdens on the overall cost structure for imported Sorbic Acid, further entrenching the upward trend in prices. Germany emerged as a focal point for these price escalations, exhibiting the most pronounced changes, influenced by seasonal demand fluctuations as colder months approached, which typically heightened the consumption of various excipients within the food industries. Additionally, the appreciation of the Euro against the USD created a favorable purchasing environment for domestic buyers, enhancing their purchasing power amidst rising prices. Throughout the quarter, a notable more than 2% increase in prices was recorded compared to the previous quarter. By the end of Q3 2024, the market settled at USD 3100 per metric ton CFR Hamburg, reinforcing the ongoing escalation in Sorbic Acid pricing within the region.
For the Quarter Ending June 2024
North America
Throughout Q2 2024, the North American Sorbic Acid market experienced a significant drop in prices, with a modest rise in the middle driven by several critical factors. The quarter began with a weak trajectory supported by a reduction in freight charges. This reduction in transportation costs consequently impacted shipment expenses and the overall pricing of Sorbic Acid within the US market, making it easy for the availability of goods within the market.
However, the presence of substantial existing inventories in the regional US market, steaming from the continuous drop in regional quotations particularly from the food industries contributed to a subdued market sentiment. This surplus in inventory, coupled with weakened consumer confidence across end-user sectors ahead of the notable rise in temperature across the region, and increased inflationary pressures further dampened the demand for Sorbic Acid, supporting a downward trend. While moving forward, in May, the trajectory reversed considerably, Demand for Sorbic Acid in the USA resurged, driven by strong market sentiment and robust local purchasing activity. Benefitting from this suppliers quoted higher prices for new orders, influenced by a recent rise in freight charges compared to the previous month. This trend was exacerbated by a shortage of containers from key producing nations, particularly China, leading to limited imports and increased freight prices. Additionally, the depreciation of the dollar raised the import cost of Sorbic Acid, further elevating prices. Despite these challenges, the market continued to see a steady influx of new inquiries, suggesting a resilient demand outlook for Sorbic Acid in the foreseeable future.
Yet again, in June, the market purchasing sentiments dropped considerably, with supplies being more than sufficient. Additionally, the seasonal nature of drug production likely played a role, with manufacturers potentially shifting focus to other medications more in demand during the summer months. This reduction in immediate production needs for Sorbic Acid used as an excipient in drug manufacturing further contributed to the price decrease. Companies may have leveraged long-term contracts, bulk purchasing agreements, or alternative logistics solutions to mitigate the impact of higher transportation expenses. Simultaneously, traders were actively liquidating inventories, adding to the available supply. Input costs and output prices have maintained inflation rates close to long-term averages, sustaining supply trends. However, weakened buyer sentiment has created a supply-demand imbalance favoring oversupply and pushing prices downward. Overall, by the end of the quarter, Sorbic Acid prices in the USA reached USD 3090/MT, reflecting a predominantly negative pricing environment influenced by a supply-demand imbalanced situation.
Asia Pacific
The APAC Sorbic Acid market in Q2 2024 exhibited significant volatility, characterized by an initial downward trend, a mid-quarter rebound, and a sharp decline as the quarter concluded. The early quarter saw prices drop due to weakened purchasing, reduced overseas inquiries, and rising freight costs amidst supply-chain disruptions. A surplus of inventories in the regional market, coupled with muted inquiries and cancelled consignments, prompted suppliers to lower prices strategically to destock. Manufacturing activity decreased, with traders focusing on existing quotations and regional end-user inquiries. Insufficient overseas demand led manufacturers to scale back operations, prioritizing inventory clearance at reduced costs to avoid storage expenses and prepare for new trading rates. However, May witnessed a steady rebound as improved consumer confidence boosted downstream demand, particularly in preservative industries. This price escalation coincided with a global economic recovery, supported by higher freight expenses and favorable production trends in key producing nations like China. Chinese market transactions rebounded, with gradual reductions in port inventories supporting an optimistic sales trend. As June began, the market plummeted considerably. Both regional and international inquiries showed minimal enthusiasm, resulting in a subdued procurement atmosphere dominated by small orders. The new order environment remained weak, exacerbated by heightened supply forecasts in specific regions, compelling merchants to expedite shipments. Overseas traders exercised caution, placing orders only as necessary, reflecting a prevailing cautious sentiment. End-of-quarter destocking sentiments further restrained production and procurement of new goods, with market players focusing on clearing existing inventories. Overall, the Sorbic Acid market in APAC experienced a 9% decrease from the previous quarter, with the quarter-ending price standing at USD 2830/MT, reflecting the complex interplay of supply, demand, and global economic factors throughout Q2 2024.
Europe
The European Sorbic Acid market, particularly in Germany, experienced significant price fluctuations throughout Q2 2024, mirroring trends seen in key producing nations like China. April saw a notable downward trend, driven by reduced demand from downstream industries, creating a supply-demand imbalance. Manufacturers and distributors faced tepid demand and increased competition, adjusting prices to stimulate activity. The persistent devaluation of the Euro against other currencies made imports more expensive, compelling importers and local distributors to revise pricing strategies to maintain competitiveness. As May arrived, prices steadily increased due to a modest recovery in market sentiments and increased procurement among downstream excipient industries. Normal transaction activity for downstream products and higher quotes for new orders supported this trend. Rising freight charges, stemming from container shortages from key producing nations like China, contributed to higher import costs and a generally positive market outlook. However, June witnessed another price drop as supplies outpaced demand. Following moderate trading in May, characterized by active factory shipments and cautious pharmaceutical buyer engagement, the market anticipated a nuanced trajectory. Downstream sectors, particularly the food industry, showed sporadic interest and limited orders, reflecting a cautious and consolidated market sentiment. Germany's role as a key importing hub significantly influenced market dynamics, with its pricing closely linked to major exporting nations. Continuous price drops in exporting countries, coupled with eased freight charges, contributed to lower Sorbic acid import prices. Despite the freight cost reduction, the overall downward trend persisted due to weakened market consumption and oversupply situations faced by end-users. By the quarter's end, Sorbic acid prices had settled at USD 3020/MT, reflecting the complex interplay of global supply chains, currency fluctuations, and shifting demand patterns in the European market.
For the Quarter Ending March 2024
North America:
Throughout Q1 2024, Sorbic Acid pricing in North America, particularly the USA, initially showed optimism before gradually declining. Market activity surged from January 2024, until Feb due to increased demand from food processing and pharmaceutical sectors, leading to higher spot market prices, while dropping considerably as March concludes.
Regional market inquiries continued to influence US market dynamics, supported by increased consumer confidence and strong economic indicators. Additionally, supply chain disruptions from major exporting nations, compounded by Lunar New Year and Spring Festival celebrations as of February, resulted in delayed consignments and higher freight costs, impacting overall market sentiments and delaying arrivals from producing nations. This complexity contributed to the persistence of elevated prices.
Following this, further, towards the end of the first quarter, prices gradually decreased within the nation, demonstrating a balanced supply-demand outlook. Reduced freight charges and the appreciation of the US dollar played significant roles in this decline, lowering overhead costs and enhancing purchasing power within international markets, thereby stabilizing the market. The resumption of trade activities further improved commodity availability, alleviating concerns over supply shortages and exerting downward pressure on prices. Despite challenges like declining demand and reduced procurement in end-user sectors, market players employed aggressive pricing strategies to boost demand and control inventories, thereby maintaining overall prices at lower levels. Overall, the USA, functioning as an importer, adjusted its strategy in accordance with trends observed in exporting nations, undergoing notable price fluctuations due to demand from the pharmaceutical industry, disruptions in the supply chain, and variations in raw material costs throughout Q1-2024.
Asia Pacific:
The Sorbic Acid market in the APAC region began the first quarter positively, witnessing a notable price increase in January that continued into February before experiencing a significant decline in March. Several factors contributed to these fluctuations throughout the quarter. Initially, in January 2024, the demand for sorbic acid in end-user industries, particularly in food preservation and cosmetics, steadily rose. Concurrently, there was a slight uptick in overseas demand, with new export orders expanding. This was reinforced by preparations for the upcoming Lunar holidays, which led to sustained regional and overseas quotations, boosting manufacturing activity and prompting producers to maintain ample inventory levels to avoid potential shortages. Moreover, increased shipping costs and port congestion elevated operational expenses for businesses, potentially leading to higher consumer prices, especially for pharmaceutical excipients like Sorbic acid which continued until February. Moreover, a temporary slowdown during the Lunar New Year celebrations in China, disrupted trade momentum and led to significant delays in consignments and shipments to trading nations entirely of February 2024. Although factories in China resumed operations towards the end of the month, there was still a lag in achieving full production capacity, resulting in product shortages, labor shortages, and production delays. Consequently, overall export prices increased due to these supply constraints. Lastly, by March 2024, prices experienced a considerable drop, influenced by weaker inquiries than projected from both regional and overseas markets. The market sentiment regarding new orders remained subdued, compounded by expectations of heightened supply in select regions, which pressured merchants to expedite shipments. Overseas traders took a cautious approach, focusing on essential purchases and suppliers offered incentives to stimulate bulk purchases, addressing surplus inventory and preparing for future demand cycles. Normalization of freight charges created opportunities for buyers, leading to increased trade activities and shipments in March and heightened market competition intensified the pricing decline as suppliers competed for market share amidst ample supply and reduced downstream consumption.
Europe:
In the first quarter of 2024, the Sorbic Acid market in Europe saw a significant price increase until the middle of the quarter, followed by a notable decline as March began, mirroring trends observed in other regions, particularly North America. Initially, starting in January 2024, demand for Sorbic acid surged, particularly in pharmaceutical topical medications and food industries. Major industry players strategically placed bulk orders since the beginning of Q4 to meet incoming orders. Despite challenges in maintaining supply-demand equilibrium, participants proactively adjusted prices upward to fortify profit margins while prioritizing inventory buildup. Additionally, disruptions in the pharmaceutical sector due to geopolitical disturbances in the Red Sea and the Suez Canal impacted market activity. These disruptions led to increased freight prices and extended transit times around Africa, causing delays in product deliveries, including Sorbic Acid. The Lunar New Year celebrations in exporting countries further complicated import-export momentum. Furthermore, towards the end of the first quarter, prices steadily dropped in March, reflecting a balanced supply-demand outlook. Downstream factories utilizing Sorbic Acid as a feedstock operated at relatively low rates, and finished product manufacturing was sluggish, contributing to reduced demand. Improved trade activities and shipments, alongside underutilized capacity among suppliers, enhanced commodity availability, easing concerns about supply shortages and pushing prices down. Despite these developments, challenges persisted due to low demand, slow purchasing, and transactions on a need-only basis throughout the month, keeping prices low. Overall, the Sorbic Acid market in Europe, particularly in Germany, witnessed fluctuating yet optimistic trends throughout the quarter, with steady purchasing activity balancing supply and demand amid supply chain disruptions and logistics issues.
For the Quarter Ending December 2023
North America
The Sorbic Acid market in North America, especially in the USA, faced challenges in the fourth quarter of 2023. Increased demand from the pharmaceutical industry and higher raw material costs, such as Ketone, contributed to a rise in Sorbic Acid prices initially. Severe winter conditions and persistent high demand for pharmaceutical excipients further impacted the market. Concurrently, the prices of alternative food preservatives like benzoic acid and potassium sorbate were on the rise, making Sorbic Acid a more attractive option for food and beverage manufacturers. Some buyers anticipated future price increases for additives, prompting them to procure larger quantities of Sorbic Acid at higher prices.
However, Sorbic Acid prices began to decline in November 2023 and remained low until the end of December 2023. Suppliers already possessed a high inventory level near the cost line, leading to a large and concentrated stock in the domestic market. Further, market participants focused on clearing inventories at lower prices to sustain profit margins. Additionally, in November 2023, the US Purchasing Managers' Index (PMI) contracted, and the US Federal Reserve's announcement hinted at a potential 5.5% interest rate increase, shaping market sentiments. The suggested interest rate hike, coupled with reduced demand from Sorbic Acid-dependent industries, is possibly aimed at countering inflation.
In December 2023, the continued decline in Sorbic Acid prices in the US market was attributed to year-end destocking practices. Suppliers adopted a cautious approach, prioritizing the efficient clearance of existing stockpiles over issuing new quotations. Notably, the USA, functioning as an importer, aligned its approach with the observed trend in exporting nations. Overall, the USA experienced significant price changes driven by pharmaceutical industry demand, supply chain disruptions, and fluctuations in raw material costs. With this, the prices of Sorbic Acid as Q4 ends in December 2023 were assembled at USD 3145/MT.
APAC
Throughout Q4 2023 in the APAC region, Sorbic Acid witnessed a descending pricing trend. Despite maintaining an optimistic trajectory until October, prices experienced a slight decline in November and remained low until the end of December 2023. The FOB prices for Sorbic Acid consistently increased during this period, reflecting a positive trading environment supported by continuous arrivals from both overseas and regional sources. The adoption of Sorbic Acid received a boost due to the depreciation of the Chinese Yuan against the US dollar. This currency fluctuation made Sorbic Acid more affordable for foreign importers, increasing new orders. However, towards the conclusion of November 2023, the trading landscape took a notably pessimistic turn, driven by a discernible reduction in orders from both regional and overseas markets. Complicating matters further, there was a significant surge in Sorbic Acid production in the preceding months, leading to an oversupply in the market. In response to reduced prices and heightened market competition, Sorbic Acid producers felt compelled to intensify their focus on cost-reduction strategies and product differentiation. These measures became imperative to safeguard their market share in the face of intensified competition, reflecting a concerted effort to adapt to the challenging economic landscape unfolding until the final days of December 2023. With this, the prices of Sorbic acid as December concludes were settled at USD 2965/MT.
Europe
In Q4 2023, the price trajectory of Sorbic Acid in the European region displayed fluctuations, starting with an upward trend in October, followed by a decline in November, and a subsequent rebound in December. The initial rise in Sorbic Acid prices was driven by heightened demand from end-users and substantial orders from exporting nations, particularly pharmacies and wholesalers engaging in bulk purchases. This led to temporary shortages and continuous price escalations. As November 2023 progressed, the CFR prices of Sorbic Acid in the German market decreased steadily. The equilibrium reached in the dynamics of supply and demand alleviated upward price pressure, allowing for a modest decline. Factors such as variations in raw material costs and production efficiency in significant producing regions also contributed to these price adjustments. Changes in manufacturing efficiency and fluctuations in essential ingredient prices directly impacted the final pricing of Sorbic Acid in the market. Merchants had sufficient stocks for the month, anticipating the price decrease from the previous month. However, the trend reversed in December, marked by a rise attributed to increased demand from the food and beverage industries during the festive season. Wineries strategically stocked Sorbic Acid in anticipation of the peak harvest and fermentation season. Additionally, the rising cost of freight and fuel ahead of a trade dispute in the Red Sea dampened exports to European countries, contributing to a price surge. In summary, the Sorbic Acid market in Europe, particularly in Germany, witnessed a fluctuating yet optimistic trend. Steady purchasing activity balanced the overall supply-demand outlook, considering supply chain disruptions and logistics issues. With this, the prices of Sorbic Acid as of December 2023 ends were assembled at USD 3215/MT.
For the Quarter Ending September 2023
North America
Sorbic Acid showcased an overall gloomy market outlook throughout the third quarter of 2023 across the North American regions, primarily in the United States. This was in line with the market trend of the previous quarter. As with the beginning of Q3, the downstream demand continued to remain on the bearish side, resulting in a higher stockpiled inventory. Distributors and suppliers, moreover, were not restocking their inventories as they were keenly focused on clearing the surplus. Furthermore, the concerns about ongoing economic instability in the US and an increase in global inflation also contributed to Sorbic Acid's lower price trend until the middle of the third quarter. Furthermore, considering the trade activity market, the import momentum decreased until August since merchants were primarily concerned with depleting their prior stockpiles. Aside from that, the US Manufacturing PMI was revised higher in September 2023, reaching 49.8, above August's final reading of 47.9 and above the preliminary estimate of 48.9. This was in September 2023, approaching September 2023. Although the market's perfectly balanced supply and demand for the product—which was effectively satisfied by an abundance of available Sorbic Acid—fuelled September's optimistic market trend with the prices settling at USD 3065/MT.
Asia Pacific
At a continuous rate, yet again, the Soric Acid pricing trajectory fell majorly in the whole third quarter of 2023. However, the prices witnessed a very moderate rise at the end of the second half, i.e., in September, but the overall market outlook remained bearish. This drop in the price trend was primarily due to weaker demand strength and wavering economic fluctuations across the region. This was further supported by a persistent drop in overseas market inquiries. Furthermore, according to the statistics bureau and the China Federation of Logistics & Purchasing, an index of export orders weakened to 46.3 from June's 46.4, well below the 50-point contraction level in the month of July. Demand for Chinese exports weakened the interest rates in several important nations to cool record-breaking inflations, which further kept the purchasing activity in a downward direction. Furthermore, until the last few weeks of August 2023, the operational activity inside the manufacturing units needed to produce sulfuric Acid remained negative. But as September approaches, the market has somewhat improved because of a modest increase in both domestic and international inquiries. The increase in input costs and rising upstream prices also aided in this. As China pursued its temporary production slowdown due to impending events, manufacturing units were gradually resuming their production activity and concentrating on destocking their excessive prior stockpiles before the arrival of the Golden Week holidays and maintaining the higher end of the market transactions.
Europe
Following the market trend of the United States, the prices of Sorbic Acid witnessed an ominous pricing trend across the European region, primarily in the German market. A significant reduction in its purchasing momentum and a drop in traders' quotations kept the market activity of sorbic Acid in the southerly direction. Additionally, moving with a similar trend in August, the Sorbic Acid market in Germany faces a notable downturn as demand from downstream industries plummets, exacerbated by persistent inflationary pressures and a confluence of global economic challenges. Meanwhile, the shipment volume was also weakened in August due to a sluggish demand outlook, which has also led to lower prices. In order to bolster this, the global economic downturn is having a negative impact on the demand for logistics services. The reason for this is that when the future is uncertain, businesses are less inclined to expand their operations or invest in new projects. As a result, the demand for logistics services like freight forwarding, shipping, and warehousing is declining. However, moving towards the termination of this quarter, the prices begin to rise but at a very moderate level, with the settlement of the price at $ 3010/MT in Germany. The demand at the same time was balanced by the overall availability of inventories among the domestic market participants.
For the Quarter Ending June 2023
North America
Across the North American region, Sorbic Acid prices followed a similar price pattern as in APAC. For the whole of the second quarter, Sorbic acid prices decreased by over 9% compared to the previous quarter across the whole of North America. The fluctuating downstream market of ethylene used in the production of sorbic acid and a steady decrease in local demand from downstream food & beverage preservatives ventures maintained the decreasing trend until the last week of June. Additionally, the market participants' large warehouse inventories are the reason for the continuous decrease in domestic demand, which forced them to lower their domestic prices to deplete their inventories to avoid damage to end products. On the other hand, considering the consumer price index (CPI) for June 2023 in North America, mainly in the United States, it grew by 0.1% in June 2023 compared to May, with domestic suppliers of sorbic acid having sufficient inventory to satisfy nearby interest throughout the second quarter of 2023. However, in June, sorbic acid costs across the region stood at USD 3875 /MT CFR Los Angeles.
Asia Pacific
Sorbic Acid prices followed the decreasing trend of the previous quarter and ended Q2 on a negative note across the whole APAC region. Although China is one of the main producers and exporters of sorbic acid, there was no significant fluctuation in demand for sorbic acid from the downstream food and pharmaceutical sector as abundant stock availability and fewer market inquiries by the main manufacturers and suppliers dominated the market. The market was quiet in April, and there were fewer trading activities reported between buyers and suppliers. Overall, the market supply and demand were in balance. As May approached, prices decreased even further than the previous month due to a significant decrease in ethylene cost for its manufacturing. In addition, China's factory activity decreased in June amid a decrease in export orders from different industries, according to a government survey that confirmed weak domestic demand and international inquiries, which added stress to an already weak economy facing weak global demand. New orders from the international market decreased even further. Heat waves across the region further affected production activity as manufacturers worried about spoilage of finished products. As a result, the price of sorbic acid at the end of June stood at USD 1415 / MT FOB Shanghai in China.
Europe
Throughout the second quarter of 2023, the prices of Sorbic Acid within the German market followed a downward trend. The local retailers' abundance of stocks and declining upstream Ethylene costs contributed to the gloomy market environment until the end of the second quarter. Moreover, moving towards the termination of the second quarter, i.e., In June, the prices continued to drop. One of the primary reasons behind this includes lessening purchasing activity owing to the disrupted weather conditions and ongoing Labour crisis, and rising energy costs which have put downward pressure on Sorbic Acid imports. The buyers were also reluctant to place large orders due to the onset of seasonal changes, and as a result, the restocking process was stopped due to the increased risk of damage. With this, the prices for Sorbic Acid Excipients in the German market were assessed at USD 3845/MT CFR Hamburg. Overall, the second quarter witnessed a drop of around 9 percent in Germany, more than the first quarter across the German market.
For the Quarter Ending March 2023
North America
North American Market showcased declined pricing sentiments for Sorbic Acid during the first quarter of 2023 on account of a continuous decrement in its downstream demand over the course of the month. Even though inflations started to subside along with energy costs, major market players claim that costs of freight reduced considerably, but still, it was observed that big merchants still didn’t witness any further relief because inquiries remained quite poor. Following the mid of the first quarter, the prices went down consistently and got assembled at USD 6018/ MT CFR Los Angeles. Moreover, market participants reduced their further quotations to destock their stockpiles and maintain their profit.
Asia Pacific
In the APAC region, primarily in China, Sorbic Acid prices in the first quarter demonstrate a continuous declining trend on account of weaker inquiries witnessed from the international market. As per the market experts, even though the ports and manufacturing industries restarted their manufacturing after the markets were reopened, the demand from both the downstream sector and the international market remained on the lower side. Furthermore, due to the ample number of inventories held by local producers and suppliers, the end-user pharma sectors did not anticipate any downstream demand as February marks its end. With this, the prices locked for Sorbic acid were at USD 5828/MT FOB Shanghai. Lower trade momentum for Sorbic Acid during the first quarter additionally supported the trend in China.
Europe
In Europe, the price of Sorbic Acid plummeted until the end of the first quarter of 2023. This price trend was attributed to a decrease in demand from the end-user industry; however, cheaper imports from the APAC region still did not affect the overall market trend of Sorbic Acid during January. Moreover, as February draws near, a consistent reduction in customer interest coupled with higher inventories propelled the domestic merchants to decrease their prices and destock the stockpiles. With this, the prices for Sorbic Acid were settled at USD 6200/MT CFR Hamburg. Furthermore, towards the termination of the first quarter, the prices of Sorbic Acid upsurge stably maintain the overall supply-demand balance.
For the Quarter Ending December 2022
North America
North American Market showcased a variable pricing sentiment for Sorbic Acid during the fourth Quarter of 2022. The prices declined with the start of October 2022 on the back of weak customer offtakes. Imports from China dropped considerably in October, weighed down by the declining cost of end products, a strong dollar, and the latest sign of inflation that had probably peaked. However, following mid-q4, supply chain disruption started to subside along with shipping charges, which somewhat supported the positive price trend for Sorbic Acid in the United States. With this, the prices for Sorbic Acid were recorded at USD 6455/MT CFR Los Angeles in November. Towards the end of the fourth quarter, the cost of Sorbic Acid significantly declined again within the domestic market as the new year holiday approached, and the demand from the downstream sector remained low.
Asia Pacific
APAC region, particularly China, witnessed mixed pricing sentiments for Sorbic Acid throughout the fourth quarter of 2022. Compared to the previous quarter, the prices of Sorbic Acid during October inclined at a moderate rate as consumer purchasing activity increased. Besides that, inflation thus decreased substantially compared to the previous month, i.e., September, even though it remained well above the upper boundary, which in turn affected the market sentiment of Sorbic Acid in the international market. Ease in supply-chain disruption and shipping charges did not keep changing the market tendency as the global inquiries remained dormant. Along with this, the prices of Sorbic Acid recorded during the mid-q4 were settled at USD 6300/MT FOB Shanghai. Towards the termination of q4, the prices declined again, which was supported by a decrease in demand and increasing COVID-19 cases within the region.
Europe
In the fourth quarter of 2022, the prices of Sorbic Acid fluctuate across Europe. The orders were dormant based on the contract, whereas the inventories remained on the higher side during the first half of the fourth quarter. Following November, the prices rose slightly and were demonstrated at USD 6598/MT CFR Hamburg in Germany. Inflation across Europe also dropped for the second consecutive month in December as surging energy prices cooled somewhat during the end of the year 2022. Demand declined 5.3% from the previous month, driven by a decrement in foreign orders, especially from exporting nations such as China. However, the thanksgiving holidays kept the inquiries weak and inventories on the higher side with the market participants.
For the Quarter Ending September 2022
North America
North American Market showcased a declined pricing sentiments for Sorbic Acid during the third quarter of 2022. The prices of Sorbic Acid decreased due to weak buying activities witnessed in the domestic market from the consumers' side as the demand for end-user pharmaceuticals and preservatives was low, which led to product stockpiling. Furthermore, the trading momentum witnessed in the domestic market was on the lower side, which supported the price trend of Sorbic Acid in the US. Additionally, downstream derivatives demand was on the lower side in the month of August-mid of q3. Altogether, the prices for Sorbic Acid in the US settled at USD 6480/MT CFR Los Angeles.
Asia Pacific
In APAC, the prices of Sorbic Acid during the third quarter of 2022 witnessed a declined pricing sentiment. During July, the prices dropped significantly due to the weakened downstream demand from end-user enterprises. Furthermore, a similar market trend was followed in the month of August and September. Lower trading momentum owing to the less inquiry from the customer side led to stockpiling of shipments at the ports. Also, the stockpiled inventories feared the domestic merchants and propelled them to reduce prices to maintain their profit margins. Towards the termination of Q3, the prices locked for Sorbic acid were at USD 6175/MT FOB Shanghai.
Europe
In Europe, the price for Sorbic Acid mimics similar market sentiments as in the North American region and showcased a downward pricing trend throughout the third Quarter of 2022. Lower consumption and weaker inquiries from the customer side affected the price value of Sorbic Acid in Europe. Additionally, weaker Trading activity witnessed continuously in mid-Q3 resulted in the stockpiling of cargoes at the European ports, which kept the prices of Sorbic Acid on the lower side. Furthermore, towards the termination of Q3, the imbalanced supply-demand was observed, propelling domestic merchants to reduce their prices to destock the accumulated inventories. Overall, the prices settled for Sorbic Acid were at USD 6605/MT CFR Hamburg.
For the Quarter Ending June 2022
North America
North American Market showcased a mixed pricing sentiments for Sorbic Acid during the second Quarter of 2022. The prices decreased due to weaker buying activities witnessed in domestic market from consumers side as the demand from end-user pharmaceutical, preservatives were low in United State region. Moreover, the price for Upstream feed Crotonaldehyde increases consistently, leading to the price hike of Sorbic Acid in mid of q2. Rising freight cost and transportation prices resulted in the price enhancement of Sorbic Acid pharmaceutical excipient in the US market owing to the imports that mainly occurs from Asia Pacific region. Additionally, supply disruption, labour shortage was another reason that surged Sorbic Acid price in overall Market. Towards the termination of second Quarter the prices recorded were raised stably and were settled at USD 6755/MT CFR Los Angeles.
Asia Pacific
The Market of APAC region witnessed an incremented state in the prices for Sorbic Acid during the second quarter of 2022.During April the prices went high due to the healthy downstream demand from end-user enterprise. Further towards the end of April the demand decline slightly with its moderate rate, leading to the price decrement of Sorbic acid in the market. Moreover, disruption in trading activities owing to delayed shipments with continual requirement results in steadily incremented cost of Sorbic Acid towards the ending of Q2. China being the major exporter to other regions, ease in the lockdown restriction encourages trading activities which augmented Sorbic acid price value as well as its demand in the market. Towards the termination of second Quarter the prices recorded were settled at USD 6485/MT FOB Shanghai.
Europe
The Price for Sorbic Acid mimics similar market sentiments as in North American region and showcased raising pricing trends during the second Quarter of 2022. Enhanced consumption in the domestic market primarily from pharmaceutical sector resulted in incremented prices. Furthermore, raised feed Crotonaldehyde prices caused the market of Sorbic Acid to spike high in domestic and regional market. Additionally, continuous transport restrictions resulting in heightened crude oil prices, logistic charges amid Russian-Ukraine geopolitical tension augmented the prices for Sorbic Acid in European region. Other than that, the cost surge owing to supply disruption, labour shortage and delayed shipments due to rerouting activities admits of the war. Towards the termination of second Quarter the prices recorded were raised stably and were settled at USD 6955/MT CFR Hamburg.
