Sodium Benzoate Prices Foreshadow Positive Market Outlook in Q2 2023

After a continuous dip in the prices of Sodium Benzoate in the US market for the past few months, foresees an optimistic market sentiment throughout April 2023 and so on. Consistent dynamics in both supply and demand in the local market support the prices for Sodium Benzoate. The price trajectory is primarily driven by upstream Benzoic Acid prices, which are also likely to influence the Sodium Benzoate market sentiments in April.

The Sodium Benzoate prices in the Chinese provinces are anticipated to record an upward trend backed by increased upstream Benzoic Acid prices. As Crude oil prices increased overnight, the market is anticipated to start the month on the higher side. However, with the onset of Q2 2023, the new production activities and increasing demand from the domestic and international markets will likely keep the confident market situation.

The surprise announcement of a collective cut in oil production by OPEC+ members increased the price of crude oil significantly in the global market. Russian oil production will be reduced by 500,000 barrels per day starting in February 2023, for a total reduction of 3.66 million barrels per day, or around 3.7% of global demand. OPEC+ members Saudi Arabia, Russia, and other major crude oil producers announced additional output curbs starting in May. OPEC+ will further cut output compared to April by about 1.15 million barrels per day. The pattern of crude oil supply exceeding demand has caused the operational range of oil prices to shift upward once more, and the OPEC production reduction plan is expected to reverse this structure.

Additionally, prices were found to be on the higher side in both the US and European markets, mirroring the development of the Chinese market. The market for Sodium Benzoate is projected to experience an increased trajectory because of higher upstream Benzoic Acid prices. Moreover, rising production costs and higher energy prices will likely promote Sodium Benzoate's upward price trend. Transportation costs will increase because of the rise in energy prices, which is likely to maintain a healthy market.

According to ChemAnalyst, the cost of Sodium Benzoate will likely rise even more in the coming months. The price trend of Sodium Benzoate is likely to be impacted by the rising feedstock prices for Benzoic Acid.