Commodities inflation impacts the global Sorbitol market

The Russia-Ukraine war has shown its severe impact on various commodity prices altering the global market sentiments regarding the production and consumption of the products. Sorbitol is a type of carbohydrate which is a natural sweetener and is industrially manufactured from corn starch. The prices of corn after the declaration of war against Ukraine by Russia have surpassed its nine-year high record, proportionally affecting the prices of Sorbitol worldwide. The prices of corn were governed by the demand from downstream manufacturers and in overseas markets.

In the North American market, the prices of Sorbitol surged owing to the high prices of feedstock corn and strong demand from the pharmaceutical and cosmetics sectors. Furthermore, the energy prices have skyrocketed after the war between two major countries affecting the production, transportation, and overall trade of Sorbitol in the US market. Additionally, the increased brent crude oil prices have driven the market sentiments as it led to high transportation costs, proportionally affecting the prices of Sorbitol. Being the natural sweetener, its applications in the food sectors and strong offtakes from end-user have impacted the prices of Sorbitol. Indolent lifestyle and urge to move forward have led to an increase in the demand for ready-to-eat items, consequently forcing the manufacturers of Sorbitol to increase the operational rate to cater to the demand from end-users. On the other hand, after the pandemic, the awareness among people regarding health and the urge to consume a less calorie diet also became the driving force of the market sentiments toward Sorbitol.

In the Asia-Pacific region, the market sentiments of Sorbitol continued to follow the uptrend as a consequence of the commodity prices hike. Furthermore, after the imposition of lockdown in China, the production rate of Sorbitol halted temporarily as the government officials implemented a zero covid tolerance policy to tackle the rising infection. However, the strong demand from the pharmaceutical sector amid the Covid created a balance in the Chinese market for Sorbitol. In the European market, the Sorbitol market witnessed a hike due to the disruption of feedstock from major supplying countries due to trade route disruption and port congestion. Globally, major players have been facing supply shortages due to vessel shortages and port congestion in major ports worldwide. These facets have shown a proportional effect on the prices of Sorbitol in the global market.

According to ChemAnalyst, the prices of Sorbitol in the upcoming weeks will observe a hike in the global market owing to the escalating prices of feedstock corn and firm offtakes from downstream sectors such as pharmaceutical and food services.