For the Quarter Ending March 2023
The first quarter of 2023 saw a declining trend in the North American market for Choline Chloride. Due to a lack of orders from domestic customers and a sufficient supply, the market attitude for choline chloride in the USA began to deteriorate in early January and persisted through the month. Choline chloride prices fell in the USA in February as a result of fewer orders from the end-user sector, despite competitive import quotes from China. The market's trading fundamentals had been impeded by weak demand and excessive inventory. However, despite reasonable imports from China and fewer orders from the end-user industry, choline chloride prices continued to fall in March. The market's trading fundamentals had been impeded by weak demand and excessive inventory. Towards the end of the quarter, the prices for Choline Chloride were assessed around USD 1180/MT for CFR Los Angeles in March.
Choline Chloride sales in the Asia Pacific region started to decline in the first quarter of 2023 for a variety of reasons. Choline chloride's declining price trend was once more seen in China in January. The Chinese markets have recovered quite a bit since the Zero-Covid policy was adjusted, although demand this month was much lower than usual. Due to an adequate supply and weak end-user demand, domestic producers were forced to lower their prices. Choline chloride prices fell sharply in February as a result of the product's continuing slow market dynamics, which were supported by weak end-user industry demand and dull buying power. March saw a sharp decline in the price of choline chloride due to the product's continuing sluggish market dynamics, which were supported by weak end-user industry demand and dull buying power. Toward the end of the quarter, the prices were assessed around USD 780/MT for FOB Shanghai in March.
The Choline Chloride market in Europe fluctuated during the first quarter of 2023. Due to an uptick in the market mood until the end of January, choline chloride saw rapid growth. The most expensive import into Germany came from China, where costs increased because the value of the Chinese renminbi vs. the US dollar increased by approximately 2.13% in just January. Because German retailers were getting high import costs from Asia in February, the price of choline chloride in Germany continued its increasing trajectory. Furthermore, orders from end-user industries surged, keeping demand strong and causing continual stock consumption. Due to a decline in end-user demand and ample market supplies, choline chloride prices in Germany were constant and on the lower side in the month that ended in March. Towards the end of the quarter, the prices for Tricalcium Phosphate were assessed at around USD 1700/MT for CFR Hamburg in March.
For the Quarter Ending December 2022
In the North American region, the Choline Chloride market maintained an overall positive sentiment in the first half of Q4 of 2022, with prices soaring to USD 1400/MT at the same timeframe. As October approached, Choline Chloride inventories were running very low in the regional market due to a limited import from the Asian market. According to the market sources, demand for the product from the downstream pharmaceutical and food sector increased under the influence of strong dynamics in the market. However, by the termination of the quarter, the Choline Chloride prices settled at USD 1385/MT after witnessing a plunge of 1.1% in December due to a decline in orders from the consumer side ahead of year-end.
In the Asia-Pacific region, the Choline Chloride market began the fourth quarter of 2022 on a strong note. The prices showcased a significant rise of up to 3.4% during October, backed by a shortage of inventories amid the Golden week holiday. However, prices started to fall consistently as the quarter proceeded. The fluctuating trend of Choline Chloride was observed due to variations in its raw material trimethylamine and ethylene oxide. However, market participants showcased a wait-and-see mood, due to which producers dwindled their price quotations to around 3.3% in the H2 of Q4 to improve orders. Another factor that hampered the growth of the product was a steep decline in demand from the end-user pharmaceutical and food sector due to the rise in Covid-19 cases and the implementation of restrictions in the country. Hence, Choline Chloride prices in China were evaluated at USD 1025/MT in December.
Unlike North American and Asia-Pacific regions, the price of Choline Chloride remained stable at a lower end in Europe with the onset of Q4, which later started increasing in November. As November approached, Choline Chloride inventories were rushing out of stock due to disruption in the supply chain. As a result, the demand for Choline Chloride from the downstream pharmaceutical and food sector increased in the European region, which kept the prices elevated. By the end of the quarter, the domestic merchants started destocking their existing inventories at lower prices due to weakening demand for the product. Thus, prices of Choline Chloride in Germany declined from USD 1890/MT in November to USD 1800/MT in December.
The Choline Chloride market showcased mixed sentiments during the third quarter of 2022 in the North American region. The Choline Chloride prices in the United States declined till August and regained their upward momentum in September. The reason behind an overall decrease of 4.2% till August was reducing demand from the downstream food and pharmaceutical industries amidst weak purchasing activities and overflowing stocks. By the termination of the third quarter, the Choline Chloride market started to improve slightly with a 3.6% increment in prices owing to its surging demand and limited inventories in end-user ventures. Furthermore, the fluctuation in energy values and freight charges also led to the instability in the price of Choline Chloride. The CFR prices for Choline Chloride were assessed at USD 1420/MT in the United States at the end of the quarter.
In the Asia Pacific region, the Choline Chloride market revealed an assorted sentiment with price fluctuations during the third quarter of 2022. With entering July, the prices of Choline Chloride in China scaled down by 3.6%. The reduction in crude oil prices led to the fluctuation in the prices of feedstocks such as Ethylene Oxide (EO) and trimethylamine during this quarter, affecting the Choline Chloride prices. Trading activities from China to the international market remained disturbed from July, leading to stockpiling Choline Chloride in the domestic market. Also, the demand from downstream pharmaceutical industries flickered with uncertainty in orders, impacting the price trend. Thus, by the quarter ending September, a slight improvement was seen with prices of Choline Chloride settled at USD 1085/MT in China.
In Europe, the prices of Choline Chloride fluctuated during the Q3 of FY2022, resembling the North American and Asian market price trend. Supply and demand fundamentals were regularly changed, the leading cause of these swings. Additionally, fluctuations in trade frequency from China during the whole quarter also affected the market value of Choline Chloride. The slow offtake from downstream pharmaceuticals and food industries was also one of the factors behind this flutter price trend of Choline Chloride. Altogether, demand from end-user industries and the inventories with domestic merchants hovered, which led to a flared supply rate combinedly influenced the market of Choline Chloride in Europe. Thus, the CFR prices of Choline Chloride in Germany settled at USD 1605/MT in June.