Market Analysis - Monthly Report - August,2020 - Benzoic Acid

August 2020 Monthly Bulletin of Industrial Benzoic Acid

Overview of the current market situation

Toluene market price wide upward. Although the international crude oil futures continue to decline, but in the aromatics market high, strong external market trend, strong external economic support, coupled with the continued decline in domestic social stocks, stable downstream demand, some of the main cargo holders limited shipments, market inquiries greatly increased, toluene market before and after the strong rise in the month, the main manufacturers gradually explore the rise, the market trend is better. But this increase is relatively large, the follow-up support is slightly inadequate, and international crude oil futures continue to decline, downstream oil demand is affected by this increase in caution, inventory decline is difficult to make up for the impact of weak demand stability constraints.    

August is Benzoic Acid market prices and demand continued to be depressed, downstream demand is not strong, in mid-August, most factories choose to start production and maintenance, and industrial benzoic acid to produce downstream products such as Sodium benzoate.

Next Market Forecast

At present, the price of benzoic acid has two main aspects:

1、Raw material price: high stock of raw materials, stable short-term price, less fluctuation

2、Epidemic impact: the recovery of downstream demand is accelerated and the negative impact of the epidemic is reduced

Benzoic acid concluded that the price of benzoic acid remained at an all-time low in August, affected by raw materials and operating costs, and that the price of benzoic acid was expected to bottom out, and the price would be greatly increased. So rigid demand customers order as soon as possible, lock in price ahead of time, to avoid late delivery tension.