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    Home > Chemial News > Echemi Analysis > Market Analysis - Monthly Report - June, 2020 - Potassium sorbate

    Market Analysis - Monthly Report - June, 2020 - Potassium sorbate

    Echemi 2020-07-07

    Potassium sorbate's overall market price continued to decline in Jun

    Overview of the current market situation


    China's epidemic situation has almost completely won. The potassium sorbate raw material factory crotonaldehyde has started normally, the raw material supply is stable, the transportation capacity is normal, the price is stable, and there is no obvious price increase. The domestic potassium sorbate plants in Shandong Kunda, Ningbo Wanglong, Nantong Acetic Acid, Jinneng Technology, Rugao Jiangbei, Rugao Yangtze River all started construction, and the factory has no delivery pressure.


    Factory Name

    Plant Capacity

    Device Operation Status

    WANGLONG

    30000Ton/Year

    On Power≤70%

    KUNDA

    30000 Ton/Year

    On Power≤80%

    JINNENG

    10000 Ton/Year

    On Power≤70%

    NANTONG

    CUSUAN

     

    27000 Ton/Year

     

    On Power≤70%

    JiangBei

    11000 Ton/Year

    On Power≤70%

    ChangJiang

    8000 Ton/Year

    On Power≤70%

     

    Market situation

    Although the epidemic situation in foreign countries has not improved, many countries are suffering from economic reasons and have begun to resume work one after another, and the demand for preservatives in the foreign market has delayed growth. The number of domestic factories that have not yet paid their orders has gradually decreased, and the margin of debt has been favorable for shipment. Domestic traders still have a large number of low-cost RMB orders, plus the country encourages exports, the tax rebate rate has increased, the exchange rate has continued to rise, continued to facilitate shipments, and strive for orders, prices continue to fall.

     

    TIM截图20200707175116

     

    Market Forecast for the Next Issue

    Influence Factor

    Key Points Overview

    Judge

    Factories Operating Rate, Inventory And Inventory

    Situation

    The factory has basically resumed work and increased its production to full horsepower. The inventory backlog has eased to a certain extent, and outstanding orders are still backlogged.

     

    Good

    Market Demand

    Despite the outbreak of the foreign epidemic involving food steel demand, foreign customers still need to

    replenish.

    Good

    Market Mentality

    China encourages exports, the exchange rate rises, tax

    rebates increase, and traders actively make profits

    Neutr

    al

    Factory Opinion

    In the short term, there is still a shortage of goods, and

    the price has no mentality of price reduction.

    Good

    UpstreamRaw

    Materials

    Raw material crotonaldehyde upstream contains alcohol,

    there is no room for price reduction of raw materials

    Good

    Industry Events

    The state encourages exports, the tax rebate rate

    increases, and the exchange rate rises.

    Good

    Summary

    Although the factory as a whole is in negative inventory and there is no room for price reduction in RMB, domestic distributors are actively making profits and it is

    difficult for prices to continue to rise.

    Good


    ECHEMI Prediction

    In summary, the unpaid orders of domestic factories are relatively alleviated. The factories sell at a profit. The vast majority of the market has poor economic benefits. Domestic dealers continue to sell at a profit and prices continue to fall. In early June, Ningbo Wanglong started the 10-day shutdown again to curb the continued decline in prices, stopped the supply of sorbic acid to the southern plant, and reduced the supply of potassium sorbate in the market. It is expected to begin supply in early June, although It can partially stabilize the market and continue to decline, the market is still likely to continue to decline.

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