For the Quarter Ending September 2022
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.
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.
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
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.
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.
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.