Market Analysis - Monthly Report - October, 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 factories in Shandong Kunda, Nantong Acetic Acid, Jinneng Technology, Rugao Jiangbei, and Rugao Yangtze River started to actively prepare for European orders next year. Factory orders began to be tight and delivery was late. Ningbo Wanglong has not yet started construction in October and is basically out of stock.

Market situation

Foreign terminals and distributors have basically started normally. It’s only more than a month before Christmas. According to traditional customer practices over the years, customers will reserve a certain amount of inventory before Christmas. In October, customers’ enthusiasm for placing orders slightly increased. However, there were more blind purchases by customers in the first half of this year. There is a backlog of some inventory. According to actual needs, customers place more orders at their discretion.

Market Forecast for the Next Issue

ECHEMI Prediction

To sum up, Ningbo Wanglong has not started work due to factory inspections in October, and the inventory was basically emptied in October. Other factories, Shandong Kunda, Nantong Acetic Acid, etc., are also due to the advent of Christmas, and the first 8,000 tons of European customers will be exempted from customs duties in 2021. European customers have begun to sign annual orders. The factory is expected to receive a large number of orders in November and actively deliver to Europe. Orders, the delivery date will be delayed, the factory negative inventory situation is slightly possible, plus the exchange rate decline, the renminbi promotion, potassium sorbate is very likely to continue to rise next month.