December Witnesses the Flimsy Price Trend of Pectin in the US and China
- 12-Jan-2023 6:30 PM
- Journalist: Kim Chul Son
This month, the prices of Pectin witnessed a weak market sentiment, following the previous month's trend. Certain factors, such as the recent Twin Hurricanes, which decimated Florida orange (one of the raw materials for Pectin) crop production, supported this pectin price trend in both regions. Reduced labor supply has added another factor to tight labor markets, and pandemic-induced disruptions to global and domestic manufacturing supply chains have affected the sentiments of all commodities.
In the US, the price of Pectin declined considerably during December as well, as the requirements from the downstream sector remained low amid ample inventories, putting strain on the supplies, owing to which the traders reduced their quotations and sold their stockpile inventories at discounted prices. Furthermore, orange production in Florida is expected to be lower than previously estimated this season, partly due to the twin hurricanes that ravaged growing regions, affecting the overall market for upstream citrus fruits and their likely end product, Pectin.
Earlier, because of winter freezes and ongoing disease problems, citrus production remained low, but the outburst of hurricanes is yet another obstacle that has affected the output and the availability of upstream citrus products within the region.
Furthermore, due to the Christmas holiday, the domestic market in the US remained closed, and customer inquiries remained low, keeping Pectin prices in the south stable.
In China, Pectin prices remained stable at the end of the fourth quarter as demand from the end-user food and pharmaceutical sectors remained low. Market participants already had enough inventory to meet overall demand. Furthermore, a surge in COVID-19 cases at the end of December impacted overall supplies in the domestic market. Production capacity reduced moderately along with the inquiries from the local and international markets, which kept the price of Pectin on the stable side.
According to the Chemanalyst: "the price of Pectin is likely to increase in the forthcoming months, primarily in the US, whereas in China, the values are expected to maintain their sturdy market sentiments." Trade activities are projected to improve considerably in the US.