Sorbitol Prices, markets & analysis
ICIS offers trusted and reliable market intelligence for those buying or selling Sorbitol or related products in the global Sorbitol market.
Our reporters across Asia, Europe and the US keep in touch with local markets, bringing you price assessments, in-depth news and analysis which you can rely on to guide you in your commercial decisions.
Sorbitol Overview Transcript
Sorbitol is a sugar alcohol produced from the starch portion of the corn kernel. Sorbitol is mainly used as a sugar substitute especially in dietetic products but itis also the main ingredient in such things as sugar-free gum and diet beverages.
The market for sorbitol is closely tied to overall consumer trends, for example if the gross national product is set to increase 2% in the coming year we can expect the4 market for sorbitol to increase 2%. It generally follows trends in overall food consumption,.
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Sorbitol: Market overview
Updated to Q3 2014
US sorbitol market contract prices are expected to decline in 2014 amid a corn bumper crop forecast by the US Department of Agriculture (USDA).
In the June World Agricultural Supply and Demand Estimates (WASDE), the USDA has projected corn production for the new crop year at 13.9bn bushels with expectations that higher yields will offset the year-on-year reduction in planted area.
The agency said that corn yield is being calculated at 165.3 bushels/acre, which is an increase of 6.5 bushels from 2013. The report added that this figure is based on a weather-adjusted yield trend model and assumes normal mid-May planting progress and summer weather conditions.
Corn supplies for the upcoming crop year are being projected at a record level of 15.1bn bushels, which would represent an increase of 330m bushels from last year. The USDA said corn use for 2014 is estimated as being 2% lower with feed and residual usage declining by 50m bushels.
Southeast Asia’s sorbitol prices are expected to remain stable in tandem with feedstock prices. Demand has picked up owing to Ramadan that started in end-June. Producers in the region are seen keeping their plants operating at high rates. The supply/demand dynamics is seen balanced.
In Thailand, the price discussions are expected to be capped in the range of $650-750/tonne FOB Thailand, while sorbitol export prices in Indonesia are to remain at $630/tonne FOB Indonesia.
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Sorbitol is among a group of chemicals known as sugar alcohols or sweetener polyols because they have a sweet taste. They are used extensively in a variety of consumer products, including sugarless gum, candy, diet bars, baked goods and toothpastes.
There are two grades of sorbitol: liquid USP and crystal. Crystal grade is the premium-priced product and commands the sugar-free chewing gum industry over the liquid product. Sorbitol can, but rarely does, compete with glycerine and propylene glycol.