Market Analysis - Monthly Report - September, 2020 - Potassium Sorbate

Overview of the current market situation

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 plants in Shandong Kunda, Ningbo Wanglong, Nantong Acetic Acid, Jinneng Technology, Rugao Jiangbei, and Rugao Yangtze River have all started construction. The inventory is sufficient, and there is no pressure for factory shipments.

Market situation

In the first half of the year, foreign customers were panicked due to the panic in most areas, and foreign customers had poor purchasing desires. They generally purchased on demand and did not make excess inventory. In addition, the entry of new production capacity has affected the Wanglong family's dominant control of raw material prices. In addition, July, August, and September are the traditional low seasons for potassium sorbate. Factory stocks are sufficient, and factory traders are tired of quotations, giving profits to shipments.

Market Forecast for the Next Issue

ECHEMI Prediction

To sum up, September is still the traditional off-season for potassium sorbate. Wanglong stopped work for maintenance at the end of September. The inventory of each factory is acceptable, and all are available in stock. The intervention of new production capacity for crude acid has changed the dominance of the Wanglong family. In September, the US dollar exchange rate continued to fall, and the price debt increased, but it still depends on market customers accepting price shipments. Approaching October, the traditional peak season, when foreign customers are generally hoarding, there is no significant improvement for the time being. It is expected that prices will not fluctuate significantly in October, and the factories will take orders.