Sorbic Acid Price Trends and Forecast

Regional Market Overview

Get the latest insights on price movement and trends analysis of Sorbic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Sorbic Acid Price Trends for the July-September of 2023

Asia

Sorbic Acid price trends for the Asian region were found to be downward facing trajectory during the third quarter of 2023. Most of the market drivers for sorbic acid acted against its performance on the price index. The feedstock succinic anhydride was readily available, which reduced the production costs.

The construction sector was already struggling owing to the economic downturn; further, the sorbic acid demands from other downstream adhesive and sealant sectors remained on the downside. The end consumer purchasing power significantly came down after a prolonged period of high global inflation, and the expenditures in leather textiles, cosmetics, construction, etc., have also fallen substantially. This customer disinterest directly impacted the sorbic acid sales in the Asian markets, especially China, and the sorbic acid regional prices continued to perform poorly.

Europe

Just like the Chinese market, there was not much weight in the sorbic acid’s performance in the European market as well. The prices kept falling down consistently as the downstream demands were bearish, and the production costs had also come down. Moreover, offshore product procurement was also cheaper during the discussed period of Q3’23 since the transportation charges had also receded with the decline in crude oil prices. Overall, muted market sentiments were observed.

North America

Following the global falling trends, sorbic acid prices continued their southward journey in the American market as well. The clouded economic outlook of the region didn’t allow the sorbic acid market to open up. Overall, dull market trends were experienced.

Analyst Insight

According to Procurement Resource, the price forecasts do not look very positive for Sorbic Acid for the coming months, given the current market fundamentals.

Sorbic Acid Price Trends for the First Half of 2023

Asia

The first and second quarters of 2023 faced a continuous string of declining prices of sorbic acid as the trends suffered majorly from the weak procurement rates from the end-user industries. The number of inquiries from the downstream industries was affected by the weak movement of food and pharmaceutical industries.

Along with this subdued demand, the level of inventories rose, indicating weak trading sentiments and hampering the growth of sorbic acid prices. Other causes of this falling trajectory of prices were the feeble economic condition of the Asia-Pacific countries and the low interest of international buyers in the sorbic acid market.

Europe

In the first quarter, the feeble demand from the downstream industries was due to a declining interest from customers in the sector. The rising level of inventories and reduction in the cost of ethylene further proved to be a challenge for the sorbic acid price trends. In addition to this, the shifting weather conditions, labor crisis, and lower purchasing appetite of buyers pushed the price trends of sorbic acid in a negative direction.

North America

In North America, the end-user industries reduced their demand for sorbic acid, and along with fluctuating costs of energy and freight, the price trends of sorbic acid declined. In the local markets, the food and beverage industries witnessed a continuous decline in both the first and second quarters of 2023. This further led to the rise in the stockpiles, and thus, the traders had to sell the products at compromised rates, hampering the growth of the sorbic acid price trends.

Analyst Insight

According to Procurement Resource, the price trends of Sorbic Acid is expected to fall in the coming quarter. The weak performance of downstream markets, high levels of inventories, and rising economic concerns are expected to affect the sorbic acid market negatively.

Procurement Resource provides latest prices of Sorbic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.