Global Glycerine Market Dives Down Amidst Weak Seasonal Demand
- 26-Dec-2022 11:13 AM
- Journalist: Patrick Knight
The price of Glycerine has continued to fall in the global market during December 2022 due to declining upstream pricing and subpar downstream demand. Prices for Glycerine have recently dropped significantly, returning to levels seen before the pandemic worldwide. Other reasons that have hampered the expansion of the Glycerine market include inflation, COVID-19 cases, recession in China's economy, and tight monetary policies.
As the demand dynamics from the downstream pharmaceutical, food, and healthcare industries remained poor, Glycerine prices continued to fall in the critical production regions, especially Indonesia and Malaysia, through the concluding week of this year. As observed by participants, the market's buying sentiment has been described as rigid due to low consumption rates and few inquiries. The cost pressure on downstream Glycerine has also remained consistent due to stabilized upstream edible oil prices. Because palm oil is currently being offered for a low price and the oleochemical sector and biodiesel production are both booming, producing refined Glycerine volumes and storing them for later use are simple. Material is thus ready for quick shipping. As a result, prices of Glycerine were assessed with a weekly decline of around 25% in the previous week of December 2022.
Like the West anticipating the holiday season, the European Glycerine market attitude remained low. Market players reported few inquiries from downstream pharmaceutical, food, and Healthcare sectors. According to reports from various businesses, the risk of a recession is still diminishing. Additionally, there have been many imports from Asia, expanding the supply of materials in the European market. The results show that manufacturing output in the Eurozone shrank at its weakest rate in December 2022, and the Purchasing Managers' Index (PMI) changed to 48.8 from 47.2 in November 2022.
The U.S. PMI dropped below 49.7 in the last few weeks, indicating a reduction in manufacturing and industrial activity, contributing to the U.S. market's decline in consumer mood. The upcoming Christmas season also influenced the sluggish demand dynamics for several petrochemical products, including Glycerine. Further bringing down the price of Glycerine in the domestic market is that end-user demand has remained negative despite adequate material supply.
ChemAnalyst's assessment states, "Due to the weak downstream industry demand, prices for Glycerine will continue to fall globally in the coming weeks. However, if downstream demand increases, higher Glycerine prices are anticipated for late January 2023 ".