HM Pectin Prices to Remain Northwards in the United States: Here is Why?
- 11-Nov-2022 12:27 PM
- Journalist: Harold Finch
High Methoxyl (HM) Pectin prices commenced on a higher note in the United States from the start of November 2022. This trend was supported by increased downstream demand from various end-user sectors and lower inventories with the market participant in the domestic market.
An affected export of upstream Citrus-based products used in the production of HM Pectin, a halt in manufacturing activities, and weaker trading momentum further supported the price trends of HM Pectin in the United States and overseas markets. This month the prices of HM Pectin intensified at a rate of 5.84 percent. Heighten customer inquiry and lesser stocks with the market participants propelled them to increase their stock levels to meet the surging demand, maintain their profit margins and prevent a shortage of lists which kept the price propensity of HM Pectin on the upper side. Moreover, higher Crude oil prices, the energy crisis, and the Russian-Ukraine war have affected the international market, impacting the price trends of downstream products, including HM Pectin.
Additionally, the strict covid norms leading to the shutdowns of some manufacturing units in China and stringent lockdown conditions impacted the market sentiments of HM Pectin. Another factor assisting higher prices of HM Pectin is disrupted transport momentum owing to the port congestion at various ports in the United States, which results in a build-up of cargoes and rerouting activities resulting in delayed deliveries.
According to ChemAnalyst: “HM Pectin is expected to witness a significant drop in its prices in the forthcoming month. The downstream demand is likely to decline further. Market participants expect ease in the trading momentum. Higher level of inventories likely to witness with the suppliers in upcoming months that is sufficient to cater to the overall demand side.”