US Glycerine Prices Fall in June 2023 Amidst Weak Downstream Demand
- 17-Jul-2023 3:51 PM
- Journalist: Motoki Sasaki
Glycerine prices in the United States declined in June 2023, reflecting a decrease in demand from downstream industries such as food, pharmaceuticals, and healthcare. The average price decrease was 5%, with some grades falling as much as 10%. This price decline is likely due to seasonal factors, increased supply, and weaker economic conditions.
The price of Glycerine has declined due to several factors, including weak demand from the food and healthcare industries. Consumers have been shifting away from processed foods in favor of healthier options in the food industry. Glycerine is a common ingredient in processed foods, such as candy, baked goods, and frozen desserts. As a result, demand for Glycerine from the food industry has been declining. In the healthcare industry, the COVID-19 pandemic has subsided, and as a result, demand for healthcare products has not been as strong as it was during the pandemic. Glycerine is used in a variety of healthcare products, such as wound dressings and contact lenses.
The pharmaceutical industry is a major consumer of Glycerin, and its demand has been declining due to headwinds in the global pharmaceutical market. Generic drugs have gained market share, leading to lower branded pharmaceutical product sales. As a result, demand for Glycerin from the pharmaceutical industry has been decreasing.
In addition to weak demand, the global supply of Glycerine has increased due to the start-up of new production facilities in China and India and the expansion of existing production capacity. This increase in supply has coincided with a decline in demand, leading to a sharp fall in Glycerine prices.
The appreciation of the US dollar has made Glycerine more expensive for buyers in other countries, leading to a decrease in demand. Additionally, the US's Manufacturing Purchasing Managers' Index (PMI) decreased in June 2023, suggesting that demand for products produced by the manufacturing sector is declining. The US Consumer Price Index (CPI) also increased in June 2023 but slower than in previous months. This suggests that inflation may be starting to ease. As a result of these factors, product prices are expected to decline in the coming months.
The price of Glycerine is affected by several factors, including the price of its feedstock, Palm Oil. The price of Palm Oil has been declining in recent months, contributing to the decline in product prices. This could have a negative impact on some businesses, such as Glycerine producers and refiners, as their profits may decline due to the lower prices. Overall, the decline in Glycerine prices indicates the weak global economy. As demand for Glycerine continues declining, prices will likely remain low shortly.
ChemAnalyst expects that Glycerine prices will remain weak in the near term due to the ongoing decline in demand. However, analysts believe that demand for Glycerine will eventually recover as consumers return to processed foods and the healthcare industry continues to grow.