Is the Supply-Demand Gap Impacting High Methoxyl Pectin Prices in the USA?
- 13-Oct-2022 3:25 PM
- Journalist: Harold Finch
High Methoxyl (HM) Pectin prices in the USA showcased an upward trajectory in October 2022. As demand Increased from the food and pharmaceutical sector compared to the last month, the higher necessity for HM Pectin inventories can be seen in the domestic market.
Compared to the previous month, the export of upstream Citrus-based products inclined significantly from South Africa, which has stopped owing to the outbreaks of fungal disease detected in Citrus. Also, the demand for downstream HM Pectin in the United States has increased, which has heightened the export momentum from Germany, Mexico, and France, which kept the prices of HM Pectin in the USA on the higher side.
This month the price for HM Pectin intensified at the rate of 4.71 percent, backed by incremented inquiries by customers from the USA domestic market, propelling the suppliers and the traders to increase their stock rate with them. Additionally, high freight rates and the cost of shipping from South Africa to European countries also positively impacted the price propensity of HM Pectin in the United States. Furthermore, the Fertiliser prices, diesel, energy, electricity, and labor prices are all going up now, supporting the upsurged pricing tendency for HM Pectin.
Moreover, the USA Traders witness an insufficient supply momentum for HM Pectin, which results in a lack of stock with them; because of this, they primarily focus on restoring inventories so they are not blowing around, keeping the prices trends on the upper side. Due to hurricane season, many citrus suppliers and producers in Florida could not fully restore their operations earlier in the previous month. The demands were on the lower side, which balanced the market sentiments. As October approaches, the demand increases for both upstream citrus fruits and downstream HM Pectin market, which drove the suppliers to uptrend their quotations to maintain their profit margins.