China's agar-agar market started January softer, reflecting post-holiday inventory relief and softer export inquiries. Early-month buyers pared spot purchases after year-end replenishment, while mid-month regulatory inspections paused output at several small coastal workshops. Adequate harvests and steady tariffs helped ease near-term costs, and finished goods cover at major warehouses lengthened as biotech restocking lagged. In response, suppliers adjusted FOB levels in Xiamen to defend share into February. Demand stayed uneven across end users, with export markets remaining soft for confectionery and dairy, while domestic food processors held steadier. Overseas demand weakened as export buyers in the United States and Japan trimmed spot purchases, and food-grade LC openings fell to mid-single digits. Domestic purchases by nutraceutical gummy manufacturers and plant-based yoghurt producers stayed largely consistent, accounting for a meaningful portion of demand. Processor utilization remained near the high end of typical ranges, while routine inspections constrained only a small portion of supply. Near-term outlook suggests gradual gains into spring, softer summer.
