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What is Impacting the Choline Chloride Values in the US?

What is Impacting the Choline Chloride Values in the US?

What is Impacting the Choline Chloride Values in the US?

  • 13-Sep-2022 5:26 PM
  • Journalist: Henry Locke

The US market of Choline Chloride commenced the month of September on a downward note as its prices began to decline from the second half of Q3 of 2022. Reduced feedstock prices, flat to sluggish demand dynamics from end-user industries, and bad purchasing attitudes have contributed to the most recent price fall.

The prices of primary feedstocks such as Ethylene Oxide (EO) and Trimethylamine have also witnessed a similar price trajectory in the US market. The price decreases that we can see in September are due to an ample supply of Ethylene Oxide and trimethylamine with manufacturers and suppliers. However, the price has staggered downward by around 1.5% and 1.8% in a similar timeframe. This declining trend of feedstocks is further affecting the Choline Chloride market in US.

Meanwhile, manufacturers and traders have noted that supply chains remain a problem. The already shaky supply chains in the North American region have worsened due to logistical issues and recent port congestion on the Gulf and East Coast.

The last aspect is consumer demand, perhaps the most difficult to foresee. Choline Chloride offtakes from end-user pharmaceutical and food sector declined, suggesting producers that they don't need to stockpile as orders are being placed on the basis of demand. As a result, US buyers who ordered 60% Choline Chloride during the first week of September received a 6% discount compared to customers who ordered at the beginning of August. When forward contracts came into effect, they displayed a comparable trend in September.

The ChemAnalyst research suggests that the state's worldwide slowdown in demand for Choline Chloride, which has influenced the product's prices in the US market, may not continue for longer. Rising energy prices and strong domestic demand may impact feedstock pricing and the production cost of Choline Chloride in the upcoming months.

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