Glyoxal Prices Shifts Patterns in May 2024: Prices Fall in US and EU, While Rising in China
Glyoxal Prices Shifts Patterns in May 2024: Prices Fall in US and EU, While Rising in China

Glyoxal Prices Shifts Patterns in May 2024: Prices Fall in US and EU, While Rising in China

  • 16-May-2024 4:47 PM
  • Journalist: Stella Fernandes

In April 2024, the European market experienced a downturn in Glyoxal prices, primarily attributed to weakened demand from the downstream construction sector. Notably, in Germany, Glyoxal prices declined by approximately 1.5% on a monthly basis, reflecting subdued construction activity domestically and decreased overseas orders from other European nations. The outlook for the German Glyoxal market for the year appeared bleak, as data from the German Building Materials Association indicated a 15% year-on-year decline in building materials production in the first quarter of 2024, following a more than 15% contraction in 2023.

Across the Atlantic, Glyoxal prices in the US market witnessed a significant decrease of around 7.1% in April 2024, largely influenced by abundant Glyoxal availability within the country. High port inventories further exacerbated the market downturn, while demand from the downstream construction industry remained subdued. These challenges underscored the broader economic concerns amidst climbing inflation levels in the US market, impacting consumer purchasing power and overall market sentiment.

Conversely, in the Chinese market, the price of Glyoxal experienced a notable upswing during April 2024, driven by heightened demand from the downstream construction industry. The Ministry of Water Resources reported substantial financial credit support for several newly constructed key water conservancy projects, including ultra-long-term and ultra-preferential interest rates. This financial backing bolstered confidence in project commencements and accelerated construction progress, thereby increasing construction activity nationwide and boosting Glyoxal demand. However, despite the surge in demand, Glyoxal supply in China remained constrained, with the State Council Information Office of China (SCIO) indicating a slight decline in the purchasing managers' index (PMI) for China's manufacturing sector, reflecting some challenges in supply chain dynamics.

Furthermore, following a period of instability due to the Red Sea crisis, signs of normalization in around Africa routings and an improvement in global schedule reliability, surpassing 53%, contributed to a favourable trading atmosphere, further supporting the upward trajectory of Glyoxal prices in China.

Meanwhile, in the US, the supply of Glyoxal remained stable to moderate, largely influenced by expensive imports from overseas, particularly China. A notable decrease in freight rates by approximately 16% in the Asian market enhanced the trading atmosphere, contributing to a bullish trend. Additionally, the price of upstream Crude Oil rose during the month, providing further support for the bullish trend of Glyoxal prices.

As per ChemAnalyst, Glyoxal prices are expected to rise in the latter half of May 2024, likely to be driven by anticipated strong demand from the downstream construction sector. This surge in demand is forecasted due to increasing temperatures and favourable weather conditions which will boost the construction sector.

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