![Global sodium benzoate market facing price pressure [World News]](https://foodcom.pl/wp-content/uploads/2023/09/Foodcom_World_News_CAT_3-1520x760.jpg "Global sodium benzoate market facing price pressure [World News]")
- The price pressure on sodium benzoate is linked to, among other things, higher prices for the raw materials from which it is produced.
- The recent week-long holiday in China resulted in a shortage of sodium benzoate due to halted production of the raw material.
- The disruption of supply chains is not only due to the shortage of raw material, but also to strikes by port workers in the US and the geopolitical situation in the Red Sea region.
- Market analysts believe that the price of sodium benzoate could rise in the coming quarters and that it will take at least a few months for the situation to normalise.
Disrupted supply chains cause possible price increases
The global sodium benzoate market is currently facing price pressure due to supply chain disruptions along major production and transportation routes. According to experts, raw material prices could increase noticeably in the coming quarters. Raw material prices are high, particularly for benzoic acid in Asian markets. Differences in raw material stocks have caused price inconsistencies between producers. Suppliers, on the other hand, are trying to balance price pressure with the still high demand for sodium benzoate by matching prices. In addition to price and stock fluctuations, a number of events on the international scene have also recently affected the production and distribution of sodium benzoate.
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What events have had an impact on this?
Recently, the sodium benzoate market has been affected mainly due to the seven-day Chinese national holiday. The world’s leading producer of sodium benzoate halted production for this period, affecting a significantly reduced supply to importing countries. Many suppliers saw a temporary shortfall, increasing the price of the raw material. The effects of the Chinese holiday were felt particularly in the United States, where supplies of sodium benzoate were further disrupted by a strike by port workers. In Europe, meanwhile, disruption is affecting shipping routes, with geopolitical tensions in the Red Sea region and attacks on merchant ships forcing carriers to take longer, alternative routes. Worldwide, not only has the transportation time of sodium benzoate increased, but also its cost. It may take several months for the supply-demand imbalance to normalise.
