Aspartame Prices Go North as the Demand Magnifies in the US
- 07-Nov-2022 11:21 AM
- Journalist: Harold Finch
Houston, USA: Due to persistent domestic market demand, insufficient supply levels of market participants, and port congestion at Houston's ports in the US, Aspartame, an artificial sweetener, prices followed the previous month's trend and significantly increased in November 2022.
The downstream demand for Aspartame has also increased in the global market, leading to higher imports from exporting nations such as China and delayed consignments, positively impacting the Aspartame market sentiments in the US. Furthermore, other factors contributing to Aspartame's higher prices are low inventory levels, high consumer requirements, and the in-availability of downstream Aspartame within the United States. This encouraged the suppliers and traders to raise their stock levels to keep up with the rising demand.
Moreover, Russia- Ukraine War, rising energy costs, and several rerouting activities led to the deferred overall available shipments from several other countries, which helped the local retailers to boost their downstream products' prices within the domestic market to gain higher profit margins. Currently, a lack of storage in the ports of Houston, minimal chassis availability, and vessel congestion at Houston area terminals further support the heightened price trends of Aspartame in the US. Overall, Aspartame's price value increased by 5.25 percent this month. However, the slowdown in China's market and trading activities (a primary exporter) due to continuous strict covid restrictions kept the production momentum low, affecting the supply chain and downstream Aspartame's availability in various other regions.
As per ChemAnalyst, "After showing a heightened tendency month over month, the price of Aspartame, an artificial sweetener, is anticipated to drop in the following month, which is December 2022. A decrease in downstream demand from end-user sectors is projected to support this dropped price trend. Market participants anticipate seeing an inventory level that is sufficient to meet the market's overall needs. Additionally, a trade activity slowdown is expected in the Upcoming month".