Glycine Prices Rise as Q1-2024 Concludes, Fueled by Demand and External Factors
Glycine Prices Rise as Q1-2024 Concludes, Fueled by Demand and External Factors

Glycine Prices Rise as Q1-2024 Concludes, Fueled by Demand and External Factors

  • 04-Mar-2024 4:16 PM
  • Journalist: Timothy Greene

The Glycine market in the United States is set to experience a continuous surge in prices across the North American region, as the end of the first quarter of 2024 approaches. This persistent rise is entirely driven by heightened demand from diverse downstream sectors. Glycine, a critical dietary supplement used in various industries, primarily in Nutraceuticals, is witnessing increased traction due to its versatile applications across Food & Beverages and Animal feed sectors, as well as in industrial domains such as Medical and pharmaceutical formulations. Several factors contribute to the surge in Glycine demand. Robust economic conditions, supply chain disruptions, geopolitical tensions, and rising raw material costs, particularly Ammonia, are key drivers. The continuous rise in Ammonia prices since the beginning of the first quarter further intensifies the upward trajectory of Glycine prices, while technological advancements and growing environmental awareness about Ammonia contribute to market expansion.

One of the contributing factors supporting the rising price trajectory of Glycine across the market includes reduced operating rates within the exporting nations in previous months, mainly due to the holiday season, resulting in limited availability of finished stocks. Manufacturers, responding to heightened demand and increased inquiries for Glycine from downstream industries, have adjusted pricing strategies, exerting additional upward pressure on prices. Despite a temporary deceleration in economic activity during the Lunar New Year and Spring Festival celebrations, China, one of the significant exporters of Glycine to the U.S., swiftly resumed its downstream operations. A surge in Glycine demand across various downstream industries catalyzed a resurgence, leading to an upswing in regional and international inquiries upon China's post-holiday resumption of regular business. However, heightened demand within China, coupled with logistical bottlenecks and production delays, has impacted businesses reliant on Chinese suppliers and contributed to cost escalations in the U.S. Glycine sector.

Moreover, the USA's dependency on exporting regions is another significant factor driving the surge in Glycine prices. Rising prices in major Chinese provinces, combined with increased freight charges due to ongoing geopolitical tensions and disruptions in the Red Sea, have further exacerbated the situation. Global shipping disruptions have led to longer shipping routes and higher fuel costs, influencing U.S. freight charges in past months. Experts anticipate that this rise in freight might continue to persist at a continuous rate even in forthcoming periods, thereby affecting the overall supply chain momentum. According to ChemAnalyst, the resulting increase in Glycine prices in February 2024 is expected to continue in the following month, considerably supported by rising demand, supply chain disruptions, and rising raw material costs. Further, market experts state that industry stakeholders must remain vigilant, adapting strategies to navigate the evolving landscape influenced by both domestic and international forces.

Related News

Global Glycine Market Sees Significant Price Decline in April
  • 10-May-2024 3:43 PM
  • Journalist: Peter Schmidt