The Chinese and German sodium benzoate market slowed down in September, with subdued downstream demand and balanced supply driving it. Demand for consumption in the food preservation, beverage, and personal care sectors remained soft, in sync with risk-averse consumption demand and decreased overall industrial output. In China, the high stock and stable production supported a steady export flow, and German consumers only made cautious purchases as the stock was still high. Softening feedstock prices and stable energy markets also resisted production pressure, further adding to overall bearishness in market sentiment. Asia-Europe freight levels stayed supportive, enabling Chinese exporters to secure competitive premiums despite declining demand elsewhere in the world. The sodium benzoate market should be rangebound within the next quarter, with modest upside until seasonal demand picks up. At the same time, stable supply, soft demand, and declining input costs characterize sodium benzoate's short-term profile in both markets.
Key Highlights
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Declining demand for preserved and processed foods slowed demand for sodium benzoate in Europe and Asia.
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German food manufactures registered declining Qx demand following greater inventories and reduced consumption.
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The use by Europe of the pharmaceutical and cosmetics sector was low because production levels were slow.
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Chinese Sodium Benzoate manufacturers kept production unchanged, backing shipments on declining margins.
The Chinese sodium benzoate market fell by xx month-on-month to USD xxxx/MT FOB Shanghai, as the German CFR Hamburg prices fell by xx.xx to USD xxxx/MT. Food preservation, beverage formulation, and personal care end-use applications demand eased noticeably in Qx due to cautious consumer expenditure in major economies. Seasonal squeeze also pulled down the drop, given that winter season usually translates into lower beverage production. European and Southeast Asian export demand eased somewhat because inventories were well-covered. German producers reduced procurement volumes in response to good inventory cover...
