2-Hydroxypropanoic Acid Price Trend and Forecast

2-Hydroxypropanoic Acid Regional Price Overview

Get the latest insights on price movement and trend analysis of 2-Hydroxypropanoic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

2-Hydroxypropanoic Acid Price Trend for the Year 2024

Asia

The Asian region demonstrated a more volatile pricing pattern throughout 2024. The first quarter started with lower prices due to reduced demand but saw a recovery during the Lunar New Year period as factory closures created temporary supply constraints.
 

2-Hydroxypropanoic Acid Price Chart

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The second quarter showed initial strength due to improved manufacturing activity and export demand, before facing pressure from weakening Chinese economic conditions. The third quarter began with price increases driven by strong export activities but later declined due to anti-dumping measures from major importing countries. By year's end, increased production capacity in China and Thailand led to an oversupply situation, further pushing prices downward.

Europe

Europe's market followed a distinct trajectory in 2024. The first quarter saw initial price declines due to subdued consumer sentiment, followed by increases driven by logistics challenges and Red Sea disruptions. The second quarter maintained strong prices due to robust business activity and supply chain constraints. However, the third quarter marked a shift, with prices first rising due to energy cost pressures but then declining significantly as economic conditions deteriorated, particularly in Germany. The fourth quarter saw continued price weakness, influenced by negative business sentiment and persistent inflation concerns.

North America

In North America, the year began with moderate price increases driven by strong consumer confidence and retail activity. The second quarter saw a mixed pattern, where prices initially rose due to robust domestic demand but experienced a mid-quarter dip as the Federal Reserve's high interest rates began impacting consumer purchasing power. The third quarter marked a turning point, starting with a brief price surge due to supply chain disruptions and port congestion, but then shifting to a significant downward trend as demand weakened considerably. The fourth quarter continued this decline as buyers maintained cautious purchasing patterns and inventory levels remained sufficient.

Analyst Insight

Looking ahead, prices are expected to remain under pressure in the short term due to sufficient supply levels and cautious demand patterns. However, potential changes in global trade policies and raw material costs could introduce new market dynamics in the coming months.
 

2-Hydroxypropanoic Acid Price Trend for the Second Half of 2023

Asia

The Asian market, particularly China, experienced consistent downward pressure on prices throughout the second half of 2023. The region faced multiple challenges, including weakened domestic demand and reduced export orders from major markets like Europe and the US.

Manufacturing activity in China showed mixed signals, with periods of contraction affecting market dynamics. Intense competition among suppliers and abundant product availability led vendors to reduce their price offerings. The feedstock market, particularly corn starch, remained subdued, further contributing to the pricing decline.

Europe

Europe, with the Netherlands as a key market, witnessed a bearish trend during H2’23. The market was characterized by surplus supply meeting subdued demand, creating downward pressure on prices. Manufacturing output and new business volumes decreased throughout the period. A notable decline in energy prices helped reduce operational and shipping costs, which translated into lower product prices. Market participants were forced to clear existing inventory to accommodate new production batches, further pressuring prices downward.

North America

The North American market showed significant volatility in H2’23. While the third quarter saw consistent price declines due to weak demand and economic challenges, the fourth quarter brought mixed trends. Initial price increases driven by industrial demand were followed by mid-quarter declines. The festive season near year-end temporarily boosted demand from food and beverage sectors. However, persistent manufacturing sector contraction and logistics challenges continued to influence the market. The Federal Reserve's high-interest rate policy and reduced inflation rates also played crucial roles in price dynamics.

Analyst Insight

According to Procurement Resource, the 2-Hydroxypropanoic Acid market is anticipated to face  continued price pressure in the near term due to global economic uncertainties and persistent manufacturing sector challenges. However, potential improvement in consumer demand and stabilizing energy costs could provide some price support in upcoming quarters.
 

2-Hydroxypropanoic Acid Price Trend for the First Half of 2023

Asia

2-Hydroxypropanoic Acid (lactic Acid) market witnessed mixed market sentiments in the first half of 2023. Q1 began with lowered prices as a result of consistently low demands from end consumers and downstream markets and glutted inventory stocks.

Feedstock glycerol also stayed in the decelerated track, which lowered the upstream costs and contributed to the dull prices. But the rise in demands from downstream food and beverage industries in the middle of the first quarter overtook, and the prices started inclining again; prices oscillated upwards for the rest of the said period. Overall mixed price trend for 2-Hydroxypropanoic Acid/Lactic Acid were observed.

Europe

The European 2-Hydroxypropanoic Acid market had a fluctuating run in H1 2023. Prices kept declining at the beginning of the first quarter as both dwindling demands and depreciating feedstock glycerol prices collectively kept pulling the market trend down. But from mid, Q1 market started to stabilize and observed equilibrium between supply and demand dynamics. After some time, by the end of the first quarter, food prices had started hiking, pertaining to weather conditions. This rise, along with the rise in demands, exerted positive cost pressure, and 2-Hydroxypropanoic Acid prices started rising along. Overall, market sentiments were mixed.

North America

The American 2-Hydroxypropanoic Acid market observed oscillating trend. Both demand and upstream production costs remained dull and didn’t let the 2-Hydroxypropanoic Acid prices improve. A little stagnancy was approached by the middle of the first quarter. Inflation didn’t impact the American economy like the European one, and the supply–demand dynamics started improving. Overall, 2-Hydroxypropanoic Acid market sentiments in the US remained dull.

Analyst Insight

According to procurement resources, the 2-Hydroxypropanoic Acid prices are expected to continue a similar oscillating pattern in the future, given the uncertain demands from downstream food & beverages industries.

Procurement Resource provides latest prices of 2-Hydroxypropanoic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.