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

Overview

The potassium sorbate raw material plant crotonaldehyde 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 factories in Shandong Kunda, Ningbo Wanglong, Nantong Acetic Acid, Jinneng Technology, Rugao Jiangbei, and Rugao Yangtze River are all under construction. The inventory is sufficient and the factory shipments are still under pressure.

Market situation

Foreign terminals have begun to resume work one after another, and home office conditions have decreased. In addition, during the previous epidemic, foreign customers were panic-stricken, buying potassium sorbate in large quantities to prevent shortages, causing foreign traders to accumulate more stocks and rush to make profits. Domestic factories are operating stably, with sufficient inventory, and selling at a profitable price.

Market Forecast for the Next Issue

ECHEMI Prediction

In summary, the domestic factories have delivered all unpaid orders. During the early epidemic period, foreign customers purchased a large amount, resulting in a large amount of surplus foreign inventory, and foreign customers sold at a profit, lowering market prices at a relatively rapid rate. Most customers have a strong wait and see mood. In addition, the traditional off-season is approaching, and the quotations of the factories are tired, and the shipments are profitable. Although the U.S. dollar exchange rate has fallen steadily, in early August, Ningbo Wanglong and Nantong Acetic Acid stopped work for 15 days for maintenance. In the later period, the overall market price may continue to fall.