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The last few weeks saw the dextrose market witness steep price falls, most notably in China, which is the largest producer and exporter of dextrose. Major demand drivers include ongoing usage by the food and drinks industries and growth in industrial applications. Demand for dextrose is still strong based on the chemical's multi-purpose applications across industries. Supply side fundamentals thus evened-out production levels and good feedstock conditions have also played their part in a downwardly directed price trend. The influence of Chinese pricing has already begun to resonate in Germany's dextrose import market. As such trends continue to unfold, the market is still set for additional realignments in the near months to come. This developing scenario together with it comes challenges and opportunities to the stakeholders, such as the manufacturers and consumers, to understand developments in the process. Overall, the dextrose sector is at a turning point, wherein watchful observation of new trends and changing patterns in demand is the requirement of the hour.
Key Highlights
Demand has been mainly driven by food and beverage industries, where dextrose acts as a sweetener and a preservative. In August, Dextrose Monohydrate FOB Shanghai was USD xxx per metric tonne, while in September it dipped to USD xxx. This drop in price has also seen a fall in the CFR Hamburg price for German imports, which fell from USD xxx to USD xxx per metric tonne. The rise in the use of dextrose by the pharmaceutical and beverage industry for different uses has also increased demand, showing the companyx;s ability to apply itself in different...
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