For the Quarter Ending June 2023
North America
The North American Agar Agar market displayed a favourable price trend in the second quarter of 2023. Due to the relatively low supply levels at suppliers in their warehouses, the demand for Agar Agar from end users in the food and beverage (F&B) sectors increased in the US. Beginning in April, inflation in the nation started to slightly drop along with energy prices. However, industry analysts claim that underlying inflation is still high and much beyond the Federal Reserve's objective. Experts are also of the opinion that the fall in inflation because of the easing of pressure in the supply chain is temporary. The country's F&B market has shown mixed market patterns, despite mixed views on the prices of several end-products consumed in these industries. A persistently strong labour market continues to support economic growth through wage increases during this quarter. At the same time, this will further fuel inflation, which will most likely lead to another interest rate hike by the Fed in July. However, the state of the US economy is still unknown, and market participants in the dietary supplement and food industries have continued to adopt a wait-and-see approach.
Asia Pacific
In the second quarter of 2023, the Agar Agar market in the Asia-Pacific region displayed a favourable price trend. The price discussions for Agar Agar for food grade in China were competitive the entire quarter. Since the beginning of the quarter, this price incline has been pretty consistent as demand for Agar Agar from the food and beverage industry has increased both locally and internationally. Chinese Agar Agar manufacturers were obliged to offer the product at larger margins throughout the quarter due to the soaring demand and inquiries from both domestic and foreign consumers. As pressure rises on the government to enact further stimulus measures to help an economy that is flattening out after three years of growth, Stats reports that China's manufacturing activity declined for a third consecutive month in June, but at a reduced pace. A number of imbalances and weaknesses were also reflected in the PMI during the last month of the quarter, including as the ongoing drop in both domestic and international demand, the acceleration of the slowdown in small business activity, and the ongoing pressures on the private sector.
Europe
In the second quarter of 2023, the domestic German Agar Agar market demonstrated bullish emotions, with slight price increases in Hamburg. This apparent increase in the market for Agar Agar in Germany over the past three months was primarily brought on by the food and beverage sectors' persistent demand notwithstanding providers' modest stock levels and rising demand for bakery goods. Energy and natural gas costs in Europe reached their lowest point since the crisis's inception in April. As hope for a more robust economic recovery grew, it surely boosted trade from Asia, particularly China. However, the market environment has been badly impacted by an unexpected increase in the unemployment rate in Germany in June. Furthermore, inflation in Germany also increased once more in June to almost 6%. At this time, it is unknown how the F&B industries will be affected. Market players are taking a wait-and-see mentality as they continue to have concerns about the nation's and the rest of the world's economic dilemma.
For the Quarter Ending March 2023
North America
In North America, the price of Agar Agar fluctuated throughout the Q1 of 2023, supported by conflicting market sentiments. A decline in prices was seen in the first quarter of 2023 due to downstream businesses' reduced demand, particularly that of the food industry and laboratories, caused by the ongoing global pandemic. Since there are many available items, prices have decreased. The supply is also sufficient to meet demand from customers. Price increases were also seen in the second month of the quarter as a result of low inventory and increased customer demand in Q1's second half, despite the fact that decreased ingredient costs and a drop in demand have recently caused price reductions.
Asia Pacific
Agar Agar's price in the Asia-Pacific region fluctuated throughout the first quarter of 2023 as a result of unstable raw material prices. During the first half of Q1, when demand from end-use industries like food and emulsion reduced, Agar Agar's price dropped in China. Agar agar's price decline has been made worse by the dealers' massive inventory. However, due to tight supply conditions in the local market and an increase in demand from end-use industries in China, guar gum prices increased in the final month of the first quarter of 2023. Agar Agar prices for FOB Xiamen in March, around the conclusion of Q1, were estimated to be around USD 13740/MT.
Europe
In Europe, the price of Agar Agar fluctuated throughout the Q1 of 2023 due to unpredictable market dynamics. Price increases were evident in the first month of the first quarter of Q1 as a result of the Russia-Ukraine conflict, which changed the tone of the world markets. In the second month of the quarter, prices in the second half of Q1 began to fall, supported by a persistent price rise that reduced demand. Additionally, costs rose in the final month of the quarter as a result of high input costs, rising raw material costs, and a drop in agar agar culture. As a result, during the quarter, the product's price changed.
For the Quarter Ending December 2022
North America
In North America, the price of Agar Agar fluctuated throughout Q4 2022, supported by conflicting market emotions. Due to the ongoing global pandemic, downstream firms, especially the food industry and laboratories, decreased their demand, which led to a drop in prices in the first quarter of 2022. The market has large inventories, which has lowered prices. Additionally, there is an ample supply to satisfy consumer demand. Additionally, prices rose in the second month of the quarter due to low stock and high consumer demand in the second half of Q4. At the same time, recent price reductions result from lower ingredient costs and a decline in demand.
Asia Pacific
Agar Agar's price in the Asia-Pacific region fell throughout the fourth quarter of 2022 as a result of stable raw material prices. Because demand from end-use sectors such as food and emulsion decreased, Agar Agar's price fell in China during the first half of Q4. The enormous inventory held by the dealers has further exacerbated the price decrease of Agar Agar. Agar Agar prices for FOB Xiamen in December, around the conclusion of Q4, were estimated to be around USD 13920/MT.
Europe
In Europe, the price of Agar Agar fluctuated throughout the Q4 of 2022 due to unpredictable market dynamics. The first month of the first part of Q4 saw price hikes fueled by the Russia-Ukraine war, which affected the atmosphere of the global markets. Prices in the second half of Q4 were on the decline in the second month of the quarter, backed by a continuous increase in price that decreased demand. Additionally, prices increased in the last month of the quarter due to high input costs, an increase in the price of raw materials, and a decline in Agar Agar culture. As a result, the product's price changed during the fourth quarter of 2022.
For the Quarter Ending September 2022
North America
In North America, the price of Agar Agar fluctuated throughout the Q3 of 2022, supported by conflicting market emotions. Prices fell in the first part of Q3 as a result of a decline in demand from downstream businesses, primarily the food sector and laboratories, brought on by the ongoing global pandemic. The market has high stockpiles, which has caused prices to fall. There is also plenty of supply to meet consumer demand. Additionally, due to low stock and high consumer demand in the second half of Q3, prices increased in the second month of the third quarter. At the same time, prices have recently decreased once further as a result of reduced ingredient costs and a drop in demand. Towards the end of Q3, the price of Agar Agar was assessed at around USD 18100/MT for the USA in September.
Asia Pacific
In Asia-Pacific Region, the price of Agar Agar fluctuated throughout the Q3 of 2022 due to the fluctuations in the cost of raw materials. Agar Agar's price dropped in China during the first part of Q3 as a result of a decline in demand from end-use industries, including food and emulsion. Agar Agar's price decline has been further reinforced by the dealers' high inventory. Due to China's golden week, which caused a shortage in the domestic market, prices rose in the third quarter of 2022. Towards the end of Q3, the prices of Agar Agar were assessed at around USD 14800/MT for FOB Xiamen in September.
Europe
In Europe, the price of Agar Agar fluctuated throughout the Q3 of 2022 due to unpredictable market dynamics. The Russia-Ukraine war, which had an impact on the mood of the world markets, supported the price increases in the first month of Q3. In the second month of the quarter, prices in the second half of Q3 were on a downward trend, supported by a steady rise in price, which reduced demand. In addition, prices rose in the final month of the quarter as a result of high input costs, an increase in the cost of raw materials, and decreased Agar Agar culture. Therefore, throughout the quarter, the product's price fluctuated. Towards the end of Q3, the prices of Agar Agar were assessed at around USD 19040/MT for Rotterdam in September.
For the Quarter Ending June 2022
North America
In North America, the price of Agar Agar fluctuated throughout the Q2 of 2022, backed by mixed market sentiments. In the first half of Q2, the prices decreased due to the ongoing global pandemic due to a decrease in demand from the downstream industries, mainly food sectors and laboratories. High inventories are present in the market, leading to a decrease in price, and ample stock is available to feed the consumer's needs. Moreover, in the second half of Q2, the prices were upward in the second month of the quarter due to limited stock and high consumption from the consumer's end. While in the last month, the prices were again lowered due to low input costs and a decrease in demand.
Asia Pacific
In Asia-Pacific Region, the price of Agar Agar increased throughout the Q2 of 2022 due to the fluctuations in the cost of raw materials. In the first half of Q2, in India, Reliance Industries recently revealed that it would make fuels using algae, leading to a rise in the cost of seaweed goods. In order to fulfill the benchmark of UN Sustainable Development Goals, the biofuel production process would be carried out sustainably. Agar-Agar prices rose in China during the second part of Q2, supported by the country's status as the top exporter. Agar-Agar has a wide range of applications outside the food industry, primarily utilizing it as a gelling agent in dairy products. Also used as a mild laxative to address digestive tract issues is soluble dietary fibre.
Europe
In Europe, the price of Agar Agar fluctuated throughout the Q2 of 2022 due to the unpredictable market dynamics. In the first half of Q2, the prices increased in the first month, backed by the Russia-Ukraine war, which affected the global market sentiments. In the second half of Q2, the prices were on a downward trajectory in the second month of the quarter, backed by a consistent increase in price, thus, decreasing the demand. Moreover, in the last month of the quarter, the prices increased due to the high input cost and the rose in the price of raw materials, and less cultivation of Agar Agar. Thus the price of the product remained fluctuated throughout the quarter.
