Tight Supply Compels Gelatin Prices To Inflate Across The Globe
- 02-Sep-2022 4:26 PM
- Journalist: Peter Schmidt
Gelatin prices are exhibiting an upward trend worldwide on the back of a tight supply of the product. The slow production activities of the manufacturing plants and the robust demand from the international market further support the rise in Gelatin prices.
In China, the Gelatin market is active due to the heavy demand from consumers, which triggers Gelatin prices. Also, the values increased by 1.9% for Gelatin (BS-150) and 2.0% for Gelatin (BS-220) due to the shortage of inventories in the market. Industrial Gelatin manufacturing is in a low phase because high temperature leads to weak jelly strength and potential quality issues. Some factories in China, most notably Ysasin Industry, a significant Gelatin producer, are mainly engaged in maintenance work to ensure the highest quality Gelatin to its buyers. With values
In the meantime, the Indian Gelatin market is also struggling due to low stocks and surging demand from the food industries. On the other hand, the weak production in China and Germany's domestic market ushered in the disrupted trade, further pushing the Gelatin food grade prices by 1.0% for (BS-150) and 1.2% for (BS-220) in India.
Not just in Asia, similar market dynamics have also been observed in the United States, where prices for Gelatin have surged around 1.6% for Gelatin (BS-150) and 0.4% for Gelatin (BS-220) in August 2022, respectively. The insufficient product availability in the USA and limited Supply from China led USA's traders to import Gelatin at a high cost from Brazil, prompting the price hike. Since China is one of the exporters of Gelatin to the USA, the turnaround in some production units for maintenance has caused a low output, hindered supplies, and disrupted trading activities of the products. Regardless of the low imports from China, the traders in the US market experienced pressure to cater to steady demand from downstream industries. As a result, they seek supplies from Brazil and Germany.
However, the rising requirement for Gelatin from the end-use pharmaceutical, food, and cosmetic manufacturers is influencing Gelatin prices to increase globally.
According to ChemAnalyst, the Gelatin prices will likely remain stable in the coming month due to consistency in demand from the end-users side, even if manufacturing plants remain shut.