In June 2025, Glycine prices in the Chinese market recorded a sharp decline due to falling raw material costs, high inventory levels, and weak export demand. Reduced global orders and cautious domestic procurement further pressured the market. However, prices are expected to rise in July, supported by growing global demand, easing geopolitical tensions, and stable supply conditions, which may encourage a gradual recovery in export momentum.
Glycine prices in China fell sharply in June 2025 as raw material costs decreased, inventories rose, and international demand softened. Market sentiment was bearish throughout the month as producers struggled to maintain prices in the face of oversupply and low downstream activity.
As per ChemAnalyst analysis, one of the major reasons for the price drop, was the continued decrease in ammonia prices (one of the main feedstocks for Glycine production). Input costs have fallen for the fourth consecutive month and have eased the overall cost burden for Glycine manufacturers with more effective pricing. This trend reflected broader material price corrections across China's chemical sector and helped drive down Glycine production expenses significantly.
However, cost-side relief was not enough to offset the market imbalance caused by excess inventory. Suppliers across China reported high stock levels of Glycine accumulated over previous months due to slower offtake and cautious procurement patterns. In response, producers were compelled to reduce prices to clear inventory and stimulate buyer interest. The pricing environment was further pressured by a notable decline in output prices, which dropped for the seventh month in a row—marking the steepest reduction in the past five months.
In terms of trade, China's Glycine exports endured significant headwinds. Export demand weakened again in June with new overseas orders decreasing for the third consecutive month. The U.S. dollar's depreciation against the Chinese Yuan decreased China's Glycine competitiveness compared to other countries, thus increasing landed costs for global buyers. Rising freight costs from Asia to the West, added additional cost pressures for importing countries, dampening interest.
Although slight improvement was seen in domestic offtake, largely driven by minor industrial and pharmaceutical applications, it was not strong enough to offset the poor export performance. The muted demand scenario remained across the key end-user industries including pharmaceuticals, nutraceuticals, and cosmetics, that typically consume large volumes of Glycine. Overall, with low consumption occurring in these sectors, combined with high and sustained availability of Glycine, producers continued to operate under strict margin pressure and have adopted cautious production strategies throughout the month.
Although there were difficulties in June, the perspective for July seems more favourable for Glycine in China. Market specialists believe Glycine prices in China are likely to strengthen over the next few weeks. Rising international demand is likely to fuel a steady rise in prices, especially as relaxation of geopolitical threats enables buyer confidence globally. Improved export sentiment is likely to increase overseas orders, providing a much-needed lift for Chinese producers after a long and drawn-out episode of weak foreign demand.
With factories operating at full capacity and maintaining stable supply chains, producers are well-positioned to meet the anticipated rise in demand. As supply and demand conditions move toward equilibrium, a gradual yet firm upward trend in Glycine prices is expected to emerge through July, restoring some strength to the Chinese Glycine market.
