LANXESS India's managing director points to escalating energy, raw material, and logistics costs driven by geopolitical tensions, pressuring margins. The company sees a shift back to cheaper feedstocks as customers grow more price-sensitive, which may impact pricing and availability.
Asia
In the Asian region, Sodium Benzoate prices exhibited mixed trends during the fourth quarter of 2024. At the beginning of the quarter, prices declined due to falling upstream market prices. The decline in crude oil prices negatively impacted the cost of most chemicals, including benzoic acid, a key feedstock for Sodium Benzoate. This exerted downward pressure on Sodium Benzoate prices, which continued their decline into this quarter.
However, later in the quarter, the market showed signs of stabilization as export demand rose amid pre-festival stocking by downstream industries. This led to a reduction in market supplies, providing support for Sodium Benzoate prices. Towards the end of the quarter, prices showed slight improvements as upstream market prices increased and inventories decreased. Overall, Sodium Benzoate prices followed a fluctuating trajectory during the last quarter of 2024.
Europe
In Q4'24, Sodium Benzoate prices exhibited significant fluctuations in the European region. The decline in upstream market prices exerted downward pressure on Sodium Benzoate prices at the beginning of the quarter. Increased supply and relatively lower demand further exacerbated the situation. Some upticks in demand were observed due to year-end stocking; however, they were not sufficient to reverse the downward trend. Towards the end of the quarter, demand declined further as industries shut down during the Christmas holidays.
North America
The Sodium Benzoate price curve fluctuated throughout the fourth quarter of 2024. The price trend closely mirrored that of its European and Asian counterparts. Prices wavered within a narrow range as supply and demand dynamics remained largely balanced during the period.
Additionally, the downward adjustment in caustic soda prices toward the end of the quarter negatively impacted the Sodium Benzoate market. Overall, notable variations in Sodium Benzoate price trends were observed during the period.
Analyst Insight
According to Procurement Resource, the Sodium Benzoate price graph is likely to witness an upward trend in the near future, influenced by the increase in the downstream demand as the industries reopen after the Holidays.
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Asia
The prices of sodium benzoate in China exhibited a declining trend, influenced by several factors. The market had an ample supply of sodium benzoate with high inventory levels. This, combined with reduced demand and low sales enthusiasm, painted a weak market picture. Additionally, falling prices of feedstock materials further added to the downward pressure. Both upstream toluene and soda ash saw price declines, providing minimal support on the cost side. Overall, the sodium benzoate market faced sluggish demand, driven by weak cost support, surplus supply, and diminished purchasing interest from downstream sectors, which pushed prices to the lower end.
In addition, the Indian government banned 156 fixed-dose combination (FDC) drugs, including popular antibiotics, painkillers, multivitamins, and medicines for fever and high blood pressure, in August. This is expected to impact the demand for sodium benzoate from the pharmaceutical sector, as it was a key ingredient in many of the banned FDC drugs.
Europe
The prices of sodium benzoate in the European market remained volatile in the third quarter of 2024. In the previous quarter, the European market experienced downward pressure due to logistical challenges. To address the supply shortage, several measures were implemented, resulting in fewer supply disruptions in this quarter. The rising prices of soda ash, a key feedstock, helped support the prices of sodium benzoate. Downstream demand from the food industries remained average, but the increasing feedstock prices caused fluctuations in the market.
North America
The sodium benzoate market in North America experienced price fluctuations in the third quarter of 2024. Prices rose and fell primarily due to temporary supply chain disruptions. The onset of the hurricane season brought logistical challenges, causing some production facilities to shut down and resulting in short-term supply issues. However, as these disruptions eased and supply levels normalized, prices stabilized. Additionally, the price of benzoic acid, a key feedstock, provided little support, contributing to the cost pressure. Overall, market dynamics remained weak.
Sodium benzoate is a chemical compound represented by the formula C7H5NaO2. It is the sodium salt of benzoic acid, commonly used as a food preservative and antimicrobial agent in various industries. With strong inhibitory properties against bacteria, yeast, and mold, sodium benzoate helps extend the shelf life of food, beverages, and personal care products. Its ability to prevent spoilage and microbial growth makes it a widely utilized additive, regulated to ensure safe levels for human consumption.
C7H5NaO2
Preservatives, Chemical Intermediate, Shelf-life enhancer
Avantor Inc, Merck KGA, Wuhan Youji Industries Co Ltd, FBC Industries Inc, A.M. Food Chemical Co Limited, DuPont de Nemours Inc, Lanxess AG
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
The oxidation of toluene in presence of nitric acid and refining of the solution gives benzoic acid. In subsequent steps, the reaction of benzoic acid with sodium hydroxide finally gives the desired product.
Naphthalene is oxidized with vanadium pentoxide, yielding phthalic anhydride. This step is followed by decarboxylation that results in benzoic acid. Furthermore, sodium benzoate is produced through the reaction of benzoic acid with sodium hydroxide.
In this process, toluene and chlorine react to produce benzotrichloride. The intermediate reacts with a mineral acid to yield benzoic acid, which, on further reaction, gives sodium benzoate.
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