Mounting Upstream Cost Propels Sodium Benzoate Excipient Prices Globally

The market of Sodium Benzoate Excipient witnessed an upsurge trend in the USA and Germany after showcasing a month-on-month decline. Higher inquiries from the downstream pharmaceutical, food industries, and personal care sectors have crippled the market growth of Sodium Benzoate Excipient in the global region. The market sentiments across Europe and the USA have been affected due to several factors, such as rising inflation, growing energy costs, and COVID-19 restrictions in the Chinese market. However, the inflation in the USA has been approached lower, and the disruptions in supply chains keep the price of Sodium Benzoate Excipient and its derivative industries still on the higher side.

Further, this month the prices of Sodium Benzoate Excipient increased significantly because of higher upstream Benzoic acid costs. Decreasing inventories of upstream Benzoic acid have compelled the manufacturers to increase their production rate to meet the surging demand for its downstream derivatives such as Sodium Benzoate Excipient. In addition, higher energy costs increased the operation rates, further supporting the price of Sodium Benzoate Excipient for both countries.

On the other hand, the Covid restrictions imposed in the Chinese market affected the trading activities as the demand witnessed has been on the higher side but disrupted trading momentum, delayed shipments, and rerouting activities owing to the Russian-Ukraine war kept the price of Sodium Benzoate Excipient on the higher side. Compared to the previous month, the prices of Sodium Benzoate Excipient increased by 1.62% in Germany and about 3.36% in the United States and are further expected to decline again in forthcoming months.

According to ChemAnalyst, "The cost of Sodium Benzoate Excipient will continue downward in the international market. The downstream inquiries from the personal care and pharmaceutical sector might remain low that will not support the manufacturer's quotations in the upcoming months. However, the supply disruptions are expected to continue in the following quarter, likely to significantly support Sodium Benzoate Excipient's price trends in both countries.