- An increase in the price of sodium benzoate used as an auxiliary substance has begun to be seen worldwide.
- Experts are predicting a further increase in July, but it is unclear whether this is a temporary fluctuation or a permanent change.
- The price increase is mainly influenced by high stocks of the substance, reduced demand and lower production prices.
Expert predictions – sodium benzoate price cut later this month
Experts predict that the price of sodium benzoate used as an auxiliary will fall as recently as July. This will cause significant changes in the market for this raw material, affecting dynamics across the supply chain. The changes will affect both exporting and importing countries of sodium benzoate, commonly used as an excipient in the food and pharmaceutical industries. Price declines have begun to be seen in China, a major exporter of sodium benzoate, but the trend is also being seen in importing countries such as the US and Germany. This brings with it price changes that could extend to the whole world. The main beneficiaries are food and beverage manufacturers, who use sodium benzoate as a nutrient and anti-caking agent, and the pharmaceutical industry, where the compound is used as a preservative and to increase the solubility or bioavailability of certain active ingredients.
What is driving down the price of sodium benzoate?
Lower sodium benzoate prices have been significantly influenced by oversupply in the market. Sodium benzoate stocks, which are part of China’s economic strategy to ensure stability of supply, have contributed to this. Reduced downstream consumption and continued efforts to reduce stocks of the substance have led to an oversupply of sodium benzoate in the global market. Another factor driving down the price of the substance is continued logistical improvements. Reductions in shipping costs and more efficient transport-related processes have contributed to lower overall export expenditure on sodium benzoate used as an excipient.
Will the fall in the value of sodium benzoate lead to a stabilisation of its prices at a lower level? Experts are unsure whether the changes are a temporary fluctuation or a permanent turnaround in the excipient market. Potential changes in raw material costs, global demand or unexpected supply chain issues could reverse the current trend. The next few months will be crucial for drawing conclusions, so experts recommend that stakeholders keep an eye on the market and adjust their strategies.
