For the Quarter Ending March 2024
North America
The pricing dynamics of Aspartame in the North American region during Q1 2024 showed an overall downward trend, with a slight increase observed in the middle of the quarter. This trend was influenced by various factors, including an excess of inventory, reduced downstream demand, fluctuating trade momentum, and cautious purchasing practices. The presence of higher-than-usual stockpiles among market participants and continuous declining downstream purchasing activity prompted suppliers to focus on clearing existing inventories, leading to continued price decreases.
Additionally, rising freight costs ahead of the Red Sea dispute added complexity, as market participants were hesitant to procure goods at higher costs. Manufacturing activity in the USA's food industries, where Aspartame is used as an artificial sweetener, further declined, resulting in significant drops in order volumes and subsequent price reductions by merchants to destock their inventories and further avoid additional storage costs. Overall, the buying sentiment for Aspartame remained subdued, with the quarter ending on a pessimistic note.
However, Observing the consistent price recovery in exporting nations, notably China, and recognizing its role as a significant importer of Aspartame, the USA enacted strategic initiatives to uphold its global competitiveness. Through adjustments in pricing strategies, the USA successfully wielded influence over the global Aspartame market, initiating a chain reaction that resulted in price increases worldwide in the middle of the first quarter of 2024. Moreover, a steady rise in regional consumption was additionally witnessed within the market which was balanced by ample inventories held by market participants. Overall, with this, the price of Aspartame in the USA as Q1 ends in March was recorded at USD 9850/MT CFR Houston.
APAC
In Q1 2024, the pricing dynamics of Aspartame in the APAC region exhibited an overall downward trajector with minor fluctuations in February 2024. the overall drop in the prices was primarily driven by various factors including subdued demand, surplus inventory levels, and weak trade momentum. This price decrease was additionally supported by weakened foreign inquiries, prompting significant price adjustments from Aspartame suppliers. Furthermore, regional trades prioritized inventory clearance at reduced rates to mitigate higher packaging and storage costs, averting potential product degradation. Despite the Chinese currency's devaluation against the US dollar, the anticipated surge in demand for Chinese exports did not materialize as anticipated. This in turn further posed questions about the intricate factors shaping international buyer behavior and market dynamics, resulting in a continuous price decline throughout the quarter. However, there was a moderate price uptick in the middle of the quarter, fueled by a slight uptick in Aspartame inquiries from end-users, which were accommodated by ample inventory levels. Enhanced inquiries from the domestic market and a resurgence in previously placed overseas orders, driven by heightened freight charges, contributed to this month’s market resilience and higher prices. Consequently, suppliers strategically adjusted prices to optimize profit margins, resulting in increased costs for buyers. Overall, in Q1 2024, Aspartame faced a negative pricing trend due to weak demand and excess supply, with a steady rise observed in February with the quarter-ending price for Aspartame settling at USD 9170/MT FOB Shanghai, reflecting a downward trend when compared to the previous quarter.
Europe
In Q1 2024, the Aspartame market in Europe experienced a predominantly downward trajectory due to various factors. As a major importer of Aspartame, Germany strategically adjusted its pricing strategy to align with exporting nations, aiming to maintain competitiveness globally. This strategic move influenced the global market, resulting in a downward price trend. The market situation for Aspartame reflected a delicate balance between supply and demand, with ample inventories meeting overall demand but hindered by factors such as declining inflation rates, economic slowdowns, and geopolitical tensions, leading to higher freight costs and reluctance among buyers and traders to negotiate new prices and place future quotations. However, there was a modest price rebound in February, supported by balanced supply and demand dynamics, with merchants having sufficient inventories to meet demand. Additionally, warehouses reported high stock levels, limiting capacity for fresh imports and prompting merchants to focus on clearing existing consignments at higher prices, aided by the Euro's devaluation against the dollar. Overall, the pricing environment for Aspartame in Europe, particularly in Germany, was negative in Q1 2024, marked by significant price declines driven by reduced consumption, economic uncertainties, and potential recessionary pressures. As the quarter concluded, the latest recorded price for Aspartame in Germany stood at USD 9970/MT CFR Hamburg.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 posed challenges for North America as Aspartame prices surged considerably initially in October while plummeting in November marking weakened purchasing sentiments and continued this trend until the final weeks of December 2023. Increased prices at the quarter's start were influenced by escalating energy prices and wages. Additionally, the considerable uptick in Aspartame prices was further a result of seasonal factors such as the holiday season and New Year's Eve, which led to increased feasting of hot beverages and sweets as winter approached which heightened the demand for Aspartame. In the meantime, persistent challenges in the supply chain were a significant contributor to the price hike. Suppliers struggled to meet the demand, leading to a decrease in supply and subsequently, a drop in stock levels. This scarcity in supply, exacerbated by bulk ordering, further strained resources, resulting in higher prices for Aspartame. Winter brought heightened demand for beverages and sweets, leading to increased Aspartame intake in the food industry. Suppliers struggled to meet this demand, resulting in decreased supply and a subsequent drop in stock levels. Bulk ordering further strained resources, driving Aspartame prices higher. However, as mid-Q4 approached and concluded, the market experienced a decline on a pessimistic note. This downturn was attributed to a global decrease in downstream consumption and reduced new quotations from the regional market. Secondly, the global economy faced uncertainties, including rising inflation and concerns about a potential recession, leading to a cautious stance among investors and a decline in stock prices. This trend moreover continued until the final weeks of December 2023. Lastly, there was an excess availability of product stockpiles due to increased production momentum in exporting nations, resulting in heightened competition and significant price reductions. Overall, the Aspartame market in North America faced challenges in the fourth quarter of 2023, with fluctuating prices influenced by seasonal factors, global economic uncertainties, and competition among suppliers. The USA experienced both price surges and drops, driven by demand fluctuations and production costs. The latest price of Aspartame in the USA for the current quarter is USD 10250/MT.
APAC
Across the APAC region, the Aspartame market encountered various factors influencing prices during the fourth quarter of 2023. Initially, in October, Aspartame inventories were notably low compared to the previous month, leading to a considerable price increase driven by heightened downstream and overseas inquiries. Expecting a surge in consumption, manufacturers increased production; however, a week-long production halt during China's golden holidays impacted the market due to labor shortages, causing delayed production and trading momentum, thereby driving prices higher. Additionally, as the winter season approached, optimistic expectations prevailed in both domestic and overseas markets. Moving into November, prices experienced a sudden decline that persisted until December 2023. This drop was attributed to weakened economic conditions in the Chinese market and reduced overseas inquiries. The substantial increase in Aspartame production capacity raised concerns among merchants about shrinking profit margins, contributing to the continued downward price trend. The expansion of manufacturing facilities led to an oversupply situation, and on a global scale, stable supply and decreased key raw material prices discouraged active replenishment of stocks by manufacturers. In summary, the APAC Aspartame market faced challenges of oversupply and weakened demand, resulting in a pessimistic trend with prices settling at USD 9550/MT by the end of December.
Europe
Throughout the entire fourth quarter of 2023, the European Aspartame market had a positive start but concluded December with a descending trajectory. The substantial price increase at the beginning of October 2023 was notably driven by increased artificial sweetener consumption during the winter months. This heightened usage in the production of processed foods and beverages, particularly in anticipation of winter festivities, contributed to a surge in Aspartame sales. Import offers also improved during this period, prompting merchants to actively reduce existing inventories at higher rates to maximize profit margins in the domestic market, reinforcing the upward price trend for Aspartame. However, as November unfolded, a noticeable decline began, extending into December 2023. The competitive landscape in the artificial sweetener market played a crucial role in shaping the pricing trajectory for November. With production momentum increasing in exporting nations in anticipation of rising demand, excess availability of product stockpiles ensued. Heightened competition among manufacturing units during periods of lower demand led to significant price reductions to attract customers. Moreover, observed price reductions in key exporting nations, notably Chinese provinces with a substantial stake in the Aspartame market, had a widespread impact on overall pricing dynamics within Germany. This emphasizes the need for market participants to adapt their strategies to navigate the changing landscape of the Aspartame market. Consequently, the price of Aspartame in Germany concluded the quarter at USD 10500/MT.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Aspartame prices increased gradually across the North American region, at which point they fell once more in September. This modest price increase was caused by the pharmaceutical, bakery, and end-user food and beverage industries' improved aspartame consumption rate, which increased moderately and was successfully counterbalanced by domestic retailers' stockpiles. To meet the total demand coming into the area, however, the merchants' aspartame inventories continued to be sufficient. Its upstream prices, which saw a rise in glutamic acid prices for the entire month of August, added to the upward pressure, supporting the higher price trajectory of Aspartame, one of the main artificial sweeteners made from it. Additionally, the USD's strengthening relative to other currencies, which resulted from rising export prices and falling import costs, bolstered its positive market outlook. Furthermore, as the third quarter came to an end, the price fell precipitously in September at the same rate, finally settling at USD 10525/MT. This resulted from a weak economy, lower demand, and an abundance of local inventory. Because there were enough inventories to meet demand on both the supply and demand sides, the Factories modified their selling prices and stopped restocking.
Asia Pacific
With improvement in downstream demand from F&B industries, Aspartame, an artificial sweetener, witnessed a very modest rise in its prices as Q3 commenced. This price trajectory continued until mid-Q3 while tumbling as September 2023 ended. The increase in demand for low-calorie and sugar-free choices among health-conscious consumers is a primary driver of the segment's growth. Also, according to market analysts, the official Purchasing Managers' Index (PMI), which measures activity in the manufacturing sector primarily at larger businesses and state-owned firms, registered 49.3 in July, according to data made public by the National Bureau of Statistics. However, this was a little higher than the reading of 49 from the previous month. There has been a moderate increase in demand for pharmaceutical products, which include Aspartame consumption, which supported this month's price increase for Aspartame. In addition, as summer approaches and the region experiences high temperatures and humidity, top beverage companies progressively raise their production activity. This has helped to maintain high levels of consumption in the food and beverage sectors through the entire month of August 2023. As the third quarter came to an end, prices declined at the same pace as they had in previous months. Nonetheless, the merchants' combined inventory was more than sufficient to offset the total number of inquiries that arrived. Furthermore, the price trend for Aspartame was kept downward for the entire month of September 2023, with its price settlement at $9920/MT, thanks to cost support from the upstream glutamic acid and L-aspartic acid in the market.
Europe
The price of Aspartame in the European market for the whole third quarter of 2023 followed the US market's trajectory. Over the first two months, prices increased, largely due to growing import momentum from exporting countries, particularly China, which is one of Germany's biggest suppliers of artificial sweeteners. The strengthening of the US dollar versus the Chinese and German currencies led to higher import prices for foreign traders, including Germany, further heightened the situation. Furthermore, preliminary data for August from the Federal Statistics Office shows that consumer prices rose 6.4% annually in comparison to other EU countries this month. The main cause of this CPI increase is attributed to the rise in the cost of essentials like food and energy. Furthermore, until the last few weeks of August, consumer spending stayed high, leading to a continuous offtake of products containing Aspartame and a continuous increase in inquiries from the downstream food and beverage industries. Consequently, this caused the traders to concentrate on replenishing their shelves. As the third quarter ended in September 2023, prices declined significantly and settled at USD 10330/MT, stabilizing the supply-demand situation.
For the Quarter Ending June 2023
North America
In the United States market, the prices of Aspartame demonstrate a mixed trajectory, but overall, it sustained its downward market trend until the end of the second quarter. The beginning of the second quarter witnessed a decremented price trend for Aspartame, followed by the market trend of the previous month. This trend was supported by an incessant drop in domestic demand coupled with higher supplies among the market participants. However, in Early May, the prices improved slightly because of a moderate surge in domestic inquiries. The merchants, additionally, possessed enough inventories for this that could cater to the overall demand side. In addition, at the end of the second quarter, Aspartame prices decreased again, displaying a weaker market trend. The significant decrease was attributed to several factors. Firstly, domestic merchants were destocking down on Aspartame inventories at lower rates owing to consistently weak demand. Secondly, the recent news from the WHO (World Health Organization) that Aspartame is likely to classify as a potential carcinogen by the International Agency on Cancer (IARC) miffed the demand for all artificial sweeteners, especially the Aspartame, thus keeping the market trend of Aspartame on the fragile side and causing merchants to be concerned about their stocks.
Asia Pacific
During the second quarter of 2023 across the APAC region, primarily concerning both China and India, Aspartame prices experienced a contrary market trend. As for the Chinese market, aspartame prices dropped throughout the second quarter, with a negligible rise in the middle of the second quarter of 2023. While across the Indian market, it went down consistently, sustaining a downward trend. As of April, the demand for Aspartame used as a sweetener in the food industry continued to remain on the weaker side as the inquiries from both the domestic and international markets were negligible, resulting in lessened production activity. Manufacturers across the Chinese market primarily focused on destocking their inventories from warehouses rather than stocking them up. Similarly, in the Indian market also, owing to a consistent drop in inquiries, the traders pulled back their further quotations on account of consistent weak demand anticipations in upcoming months. As the month of May comes to an end, the price of Aspartame continues to show its weak price trend in the Indian market while there were signs of recovery in demand observed across the Chinese market. Additionally, the merchants had more than enough inventory in comparison to the demand, which slightly increased in China. Moreover, in June, the prices of Aspartame decreased drastically in both regions. Owing to this, the manufacturers had to reduce their production activity and destock inventory in order to maintain their profit margin.
Europe
Across the European market, the price of Aspartame fell throughout the second quarter of 2023, with a marginal rise in May 2023. Following the market trend of the previous month, the prices of Aspartame dropped across the German market during the month of April. However, in May, the participants witnessed a positive market sentiment for Aspartame as demand rose slightly, which was further balanced out by overall inventories available among the domestic merchants. But as June concludes, the prices fell across the German market by more than 15 percent as a result of weakened global demand and domestic inquiries. Traders and suppliers across the German market additionally pulled back their orders and focused on clearing out their accumulated stockpiles first. In addition to that, the decrease in the consumption of diet cokes containing Aspartame as a result of recent news from WHO, which is likely to categorize Aspartame as having carcinogen as it might result in the carcinogenic effect has affected consumer purchasing power, resulting in weak buying activity a sudden drop in its prices.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a decremented price trend for Aspartame because of decreased domestic demand coupled with adequate supplies among the market participants. In Early January, prices displayed an incremented trend due to an increase in demand which was balanced with the supplies among the local merchants. Also, an easing of trade activity and an ease in inflation had an impact on the general market trend. During the mid of the first quarter, the markets in the U.S. improved to some extent, but still, the demand from various sectors decreased, owing to which domestic retailers pulled back their newer orders from export nations and focused on destocking their piled-up stocks. Overall, the prices for Aspartame were assembled at USD 14335/MT CFR Houston in the United States.
Asia Pacific
In the APAC region, Aspartame prices witness a decrement throughout the first quarter of 2023. During the first half of the first quarter, i.e., in January 2023, the market sentiments somewhat improved in China during the holiday-shortened month of January, majorly because of higher demands following the Lunar New Year as both consumption and production increased significantly as the government abandoned its zero-COVID policy. Following February, the prices started to decline at a moderate rate and were recorded at USD 13785/MT FOB Shanghai, propelling the manufacturers to reduce their production activity and destock the inventories to maintain their profit margin.
Europe
In Europe, the price of Aspartame tumbled throughout the first quarter of 2023. A decline in demand from the end-user industry, a weaker consumer index, and higher stockpiles were some of the factors that kept the prices of Aspartame in the downward direction. However, cheaper imports from the APAC region still did not affect the overall market trend of Aspartame this quarter. As February draws near reduction in freight charges owing to ease in the logistical problems with more than enough cargo capacity on ships and no longer any traffic at German ports didn’t affect the market trend because the inquiries remained on the lower side. Overall, consistent feeble demand and lower customer interest resulted in higher stockpiles of Aspartame among the market players, which in turn supported the decremented price trend in Germany. With this, the prices for Aspartame were settled at USD 15250/MT CFR Hamburg.
For the Quarter Ending December 2022
North America
North American region witnessed descending price sentiment of Aspartame during the fourth Quarter of 2022. At the start of October, the price rose considerably as the end-user demand for Aspartame from the Pharmaceutical, Food & Beverage industries. Until November, the prices of Aspartame remained on the higher side with the settlement of USD 22170 /MT CFR Houston, but with the start of December, the cost started to decline to owe to a decrease in customer requirements and shut down of the market on account of new year holidays. Also, ease in supply chain momentum and decreased freight charges supported the market sentiments of Aspartame during the year ending.
Asia Pacific
During the fourth quarter of 2022, Aspartame prices overall demonstrated weaker market sentiments. Though, at the start of October, the demand rebounded slightly compared to the previous quarter, which the market participants successfully fulfilled. However, the slowdown in China's manufacturing activities and the trading momentum due to strict covid restrictions affected its production momentum, which started to decline considerably following November. Furthermore, Chinese economic activity fell below expectations in November, as disruptions caused by COVID-related lockdowns continued to chip away at growth and worsened sentiment among manufacturers and traders. The prices fall sharply with the settlement of 14590/MT FOB Shanghai in China during November and continue to end the year 2022 with the same rate.
Europe
The fourth quarter of 2022 imitates a similar trend in the European market as that of Asia Pacific for Aspartame. Initially, the market trend started on a positive note until November and got assembled at USD 25095/MT CFR Hamburg in Germany on the back of a surge in its demand from various end-user Pharmaceutical, Food & Beverage sectors. Following December, the prices started to drop considerably amidst a decrease in its upstream intermediate Acetic Acid, which in turn also contributed to a cooling price trend of Aspartame as the demand remained low and stocks with market players were enough. Furthermore, newer orders were also down in December, reflecting high stocks among the suppliers owing to the temporary shutdown of the market.
For the Quarter Ending September 2022
North America
The prices of Aspartame in the third Quarter followed the previous Quarter's trend in the North American region owing to a decremented downstream demand, which resulted in the stockpiling of products with the local merchants. Although, the demand during the first half of Q3 inclined slightly with the settlement of 22255/MT CFR Los Angeles, which further reduced again towards the termination of the first half. Furthermore, as inflation increased and the economy slowed this spring, retailers began to pull back on end-of-year orders for goods which affected the pricing sentiments of Aspartame in the regional market. Moreover, towards the end of Q3, the price value of Aspartame recorded was settled at USD 20515/MT CFR Houston.
Asia Pacific
The prices of Aspartame in the APAC region witnessed a decremented pricing trend during the third Quarter of 2022. Sluggish demand from downstream end-user pharmaceutical, food, and beverages industries and increased inventories supported the upsurged tendency of Aspartame in India and China, respectively. Moreover, in China, the prices went on the higher side during the first half of Q3 owing to the increment in customer inquiries from the downstream sector. Following this, the prices went down in the mid of Q3 owing to a reduction in the production cost with surging inventories which propelled the market participants to reduce their prices in order to destock the stockpiles. With this, the prices witnessed for Aspartame at the end of q3 were USD 16565/MT FOB Shanghai.
Europe
The European market mimics similar pricing sentiments as of the North American region during the third Quarter of 2022 in Germany, backed by unstable downstream demand witnessed. Weakened buying and purchasing activities significantly supported the decremented price trend of Aspartame in the regional market. The reduced downstream demand from the customer's side led to the building up of stocks for Aspartame with the manufacturers. Besides that, a decrease in trading activities and stockpiled cargoes negatively impacted the pricing tendency of Aspartame. Furthermore, towards the end of q3, the prices demonstrated for Aspartame were settled at USD 23035 /MT CFR Hamburg in September.
For the Quarter Ending June 2022
North America
In the North American region, the prices of Aspartame witnessed a downward trend during the second Quarter of 2022, backed by a significant reduction in downstream demand from end-user Pharmaceutical, food & beverage industries. Also, substantial fluctuation in upstream feed Amino acids cost and availability affected the Aspartame market in both regional and domestic markets. Besides that, affected trading activities due to fluctuation in fuel prices and rerouting momentum owing to the Russian invasion in Ukraine affected aspartame cost. With slugging downstream demand, the manufacturers were obliged to reduce the production rate, which negatively impacted the prices of Aspartame and went down at the rate of USD 21969 with an average decline of 2.97 % in USA CFR Houston.
Asia Pacific
During the first Quarter of 2022, the prices of Aspartame declined significantly across Asia-Pacific region with an average declination of 3.0% in China backed by Slugging demand from downstream end-user pharmaceutical, food, and beverages industries and increasing inventories. Also, the fluctuation upstream feed Amino Acid prices caused the prices of Aspartame to reduce. Furthermore, the reduced production cost with surging inventories prompted producers to keep the prices low in the market. The local domestic market of Aspartame observed a balance between demand and supply-side, which affects its price value. Towards the end of the second quarter, Aspartame's price increases as the downstream demand increases, resulting in a resurgence in production activities with emptying stocks in the market in the market and were settled at USD 19100/MT FOB Shanghai in China.
Europe
The European market mimics similar pricing sentiments to North America during the second Quarter of 2022, with an average declination of 2.39% in Germany CFR Hamburg backed by unstable feed amino acids cost. Weakened buying and purchasing activities significantly affected the prices of Aspartame in the market. The reduced downstream demand from the customer's side led to the building up of stocks for Aspartame with the manufacturers, resulting in the decline of Aspartame prices. Besides that, a decrease in trading activities owing to stockpiled cargoes negatively impacted the prices of Aspartame. A balanced trend was observed in the supply and demand rate in the local domestic market. Towards the ending of q2 the prices were settled at USD 24708/MT CFR Hamburg.
