Substantial Demand Drops Likely to Keep the Glycerine Market Feeble Across the Globe
- 07-Feb-2023 6:16 PM
- Journalist: Nina Jiang
The price of Glycerine has been steadily declining in the global market throughout January 2023 due to diminishing downstream demand. The Glycerine prices showcase pessimistic market behavior due to several factors, such as inflation, an increase in COVID instances, the Chinese economy's crisis, and severe monetary regulations. Prices for Glycerine have rolled down back to their pre-pandemic levels across the globe.
While the Glycerine demand dynamics from the downstream pharmaceutical, food, and healthcare industries remained poor, prices for Glycerine kept falling in the major producing nations, such as Indonesia and Malaysia. As imports from the major importing countries declined, Indonesian market participants were left with substantial stocks on board, as a result of the market's unfavorable demand situation, eventually stabilized across the globe. Players have noticed the market's weak buying sentiment due to the low consumption rates and few inquiries about the product. The cost pressure on downstream Glycerine has also remained largely unchanged because of sustained upstream edible oil prices. Refined Glycerine can be produced in large quantities and saved for future use as palm oil is cheap. Also, the oleochemical industry is flourishing, and biodiesel production is rising. As a result, it was projected that the price of Glycerine would have significantly fallen by the end of January 2023.
Market participants in the US and Europe observed a dearth of queries from the pharmaceutical and healthcare industries. Numerous petrochemical products, particularly Glycerine, experienced negative demand dynamics due to low seasonal demand from unreliable weather. Also, ease of inflation and relieved port congestion supported the feeble market situation. The decrease in the logistic cost and low freight charges further influenced the trading atmosphere, positively keeping the market situation at ease.
According to ChemAnalyst's analysis, "The consistent downstream demand likely to keep the prices for Glycerine stabilized in the future weeks." It is also anticipated that the bulk inventories among the market players will likely keep the market for Glycerine feeble.