Glyoxylic Acid Price Trend and Forecast

Regional Price Overview

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

Glyoxylic Acid Price Trend for the Q1 of 2024

Asia

In China, the price of glyoxylic acid in the first quarter of 2024 experienced a decline. Throughout the quarter, the glyoxylic acid market witnessed a downward trend, with average consumption in the terminal market and weak downstream purchasing activities.

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The limited export shipments resulted in increased inventory, prompting continuous reductions in quotations to stimulate downstream market entry. However, sluggish downstream consumption and insufficient demand support led to weakened glyoxylic acid prices. Fluctuations in the upstream raw material methanol market also influenced market dynamics.

Despite the initial surge supported by downstream procurement rates, the market weakened due to average downstream procurement sentiment, focusing mainly on essential purchases. Eventually, the manufacturers also responded by lowering glyoxylic acid production and price quotations to relatively low levels.

Europe

In the European region, glyoxylic acid prices experienced a significant decline in the first phase of the Q1 of 2024. This drop was mainly driven by subdued demand after the Christmas and New Year holidays. Additionally, heightened ocean freight rates resulting from attacks on ships in the Red Sea have raised concerns about inflation and delayed goods. To avoid potential strikes by Iran-backed Houthi militants in Yemen, carriers diverted trade away from the crucial Middle East trade route, which connects the Mediterranean Sea and the Indian Ocean.

Therefore, this redirection has led to increased inventories at ports, contributing to the widening of the gap between demand and supply for glyoxylic acid in the European market. Additionally, the domestic downstream industries also offered only limited support to the glyoxylic acid market and eventually contributed heavily to keeping its prices on the lower end of the spectrum. However, as the quarter progressed, the cost of production rose gradually on the back of the rising cost of feedstock chemicals and crude oil, which might raise the price quotations of glyoxylic acid in the next quarters.

North America

During the first half of Q1 of 2024, the North American glyoxylic acid market experienced a persistent negative trend primarily due to the declining prices of essential feedstock nitric acid. This decline led to lower production costs for glyoxylic acid, exerting downward pressure on its prices. Additionally, extensive drought conditions at the Panama Canal, coupled with concerns about attacks on ocean shipments, prompted major shipping companies to seek alternative trade routes, including the Suez Canal.

However, limitations at the Panama Canal forced some shippers to reroute exports, including glyoxylic acid, through the Suez Canal to access Asian markets. These delays in shipments to the international market further intensified the accumulation of glyoxylic acid inventories within the country. Furthermore, procurement orders from downstream industries like cosmetics and haircare remained restrained following the conclusion of the peak festive season.

Analyst Insight

According to Procurement Resource, the price trend of Glyoxylic Acid is expected to face downward pressure amid limited support from the downstream industries and the rising cost of transportation.

Glyoxylic Acid Price Trend for the October - December of 2023

Asia

A modest price increase in glyoxylic acid was observed in the Chinese market during the fourth quarter due to several causes. The increase in prices was attributed to the strong demand for glyoxylic acid in the global market as well as higher prices for upstream ammonia and critical feedstock nitric acid.

The domestic and overseas traders were highly interested in this sector, and further, the rise in demand, particularly from the cosmetics and haircare sectors on account of the impending holiday season, gave the Glyoxylic Acid market its required momentum. In addition, the region's production rates decreased as the holiday season approached, which in turn dried up the inventories.

Europe

The cost of feedstock and upstream materials increased remarkably during Q4'23, which contributed significantly to the spike in glyoxylic acid prices in Europe. The domestic European cosmetics and haircare industry demand was, on the other hand, somewhat muted. In addition, the government took action to suppress the economic impact of worldwide inflation on the market. However, in order to curtail inflationary pressure, the European Central Bank decided to increase interest rates. The traders' sector responded to this spike by raising the prices of glyoxylic acid and other related commodities in order to preserve its profit margins.

North America

The first month of the fourth quarter witnessed a significant glyoxylic acid price increase in North America. The increased demand from downstream sectors and the high cost of natural gas and feedstock nitric acid were the foremost factors that contributed to the price increase. Further, the prices for glyoxylic acid rose because of higher production rates also brought on by rising raw material costs.

During this phase of the quarter, the consumer also showed interest in the market as the number of bulk purchases went up. However, the winds did not remain favorable during the rest of the quarter, and the dip in crude oil prices, along with the loss of export traders, forced the Glyoxylic Acid price trends to fluctuate.

Analyst Insight

According to Procurement Resource, the price trends of Glyoxylic Acid are estimated to experience robust growth in the upcoming quarters as the overview of global downstream industries looks positive. However, the challenging economic conditions and strict government regulations impose to be a problem for the manufacturing sector.

Glyoxylic Acid Price Trends for the July-September of 2023

Asia

The glyoxylic acid prices exhibited a faltering trend throughout three months of the third quarter of 2023. Even though glyoxylic acid is one of the high demand chemicals for the chemical industry itself because of its versatile applicability, the demands during the given period were highly unsatisfactory.

Both domestic and international markets responded in a very cold manner. Orders from the pharma and cosmetics industries were feeble; compared to that, the supplies available in glyoxylic acid inventories were mountainous. Slow-paced industrial recovery in China also pushed down the price graph for glyoxylic acid, and the dull international response complimented the poor performance. Overall, a slumping trend was observed for glyoxylic acid.

Europe

The European glyoxylic acid market could not behave in any different manner than the Asian market. The price trends depreciated consistently for glyoxylic acid as the downstream situation was already turbulent when the ease in inflation slid the upstream cost as well. Overall, bearish market sentiments were observed.

North America

Surrendering to the global trends, the glyoxylic acid market in America also behaved in a similar slumping manner. The industrial operations were already suffering with high interest rates in the region. To add on, the existing excess inventory stocks further pulled the glyoxylic acid prices down. Overall, a negative market outlook was experienced.

Analyst Insight

According to Procurement Resource, the price trends for Glyoxylic Acid are likely to remain volatile in the coming quarter, given the riddled downstream demands amidst the grim economic situation.

Glyoxylic Acid Price Trend for the First Half of 2023

Asia

The Asia-Pacific market mostly declined in the first and second quarters of 2023 as the demand from cosmetics and haircare industries declined significantly. However, the rising cost of energy in the first quarter provided little support, which was not sufficient to curb the pressure of declining economic conditions. In addition to this, poor purchasing sentiments of buyers and the loss of momentum of the glyoxylic acid market in both domestic and international markets caused the price trends of glyoxylic acid to fall in the first half of 2023.

Europe

A significant decline in the prices of glyoxylic acid was observed in the first quarter of 2023, but the market dynamics improved in the second quarter. The first quarter was negatively impacted by the falling cosmetic market and instability in the related industries due to rising levels of inflation. But the second quarter was favorable to the prices of glyoxylic acid. There was a significant incline in the trends as it was supported by the slowing down of supply chains, which could not suffice with the increasing demand for the product. The consumers also showcased high confidence in the market and supported the rise in prices.

North America

Unlike the European market, glyoxylic acid prices declined in North America in the first and second quarters of 2023. In the first quarter, there was a noticeable disbalance in the supply and demand equilibrium due to high rates of operations. In the second quarter, the cost of feedstock materials and buying potential of consumers also declined amid the fluctuating market conditions. The level of exports thus also declined which eventually caused the fall in the price trends of glyoxylic acid.

Analyst Insight

According to Procurement Resource, glyoxylic acid prices are expected to remain volatile in the coming months, given the current market dynamics amid rising inflation and reduced consumer confidence.

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