Discrepancy in Demand & Supply Results in Glycerine Price Fall
- 16-Jun-2023 6:16 PM
- Journalist: Harold Finch
Glycerine prices have been persistently falling in the global market for some time now. Several variables such as increased supply, decreased demand, and a stronger USD are to blame for this. However, an increase in supply is one of the most important factors driving down Glycerine prices in nations including the US, Belgium, Indonesia, the UK, Germany, Malaysia, and several others. The number of Glycerine producers has increased significantly in recent years resulting in an increase in global supply, which put pressure on prices.
Another factor contributing to the decline in Glycerine prices is decreased demand. Glycerine is a versatile compound with a wide range of applications in food, pharmaceutical, and healthcare industries. However, demand for Glycerine typically declines in the summer months, as these industries experience lower production levels. In addition, the strengthening of the USD has negatively affected the price of Glycerine worldwide. The USD strengthened against other major currencies such as the Euro and the Japanese Yen. This made Glycerine more expensive for buyers in these countries, which also led to lower demand.
In addition to weak demand, there are also ample domestic inventories of Glycerine. This is due to the fact that Glycerine is a byproduct of biodiesel production, and the biodiesel industry has been experiencing strong growth in recent years. As a result, more Glycerine is available on the market than there is demand, which puts downward pressure on prices.
Glycerine is also a byproduct of the production of edible oils, such as palm oil. As the prices of these oils decline, the cost of producing Glycerine also declines. This is another factor that is contributing to the decrease in Glycerine prices. Moreover, the demand for palm oil has been declining in recent months due to a number of factors, including the global economic slowdown, the war in Ukraine, and the rising cost of living. The global economic slowdown has led to a decrease in demand for many commodities, including palm oil. The war in Ukraine has also disrupted global supply chains, which has made it more difficult and expensive to get palm oil to market which has led some consumers to switch to cheaper substitutes for palm oil, such as sunflower oil. This has led to an oversupply of palm oil on the market, which is further putting downward pressure on prices. Favorable weather conditions in Malaysia and Indonesia, the two largest producers of palm oil, have led to bumper crops in recent years. Increased plantings in other countries, such as Thailand and Colombia, have also contributed to the increase in supply.
According to ChemAnalyst, the outlook for the Glycerine market is still uncertain. The factors currently lowering prices will continue to do so for the foreseeable future. However, it is possible that long-term demand for Glycerine may increase. It is important to note that Glycerine prices are constantly changing, and it is possible that prices may increase in the coming months.