For the Quarter Ending December 2022
The Gelatin in the North American region showed a mixed price trajectory in the Q4 of 2022. In the USA, Gelatin price escalated a total of 7.8% for Gelatin (BS-150) and 1.4% for Gelatin (BS-220) until November of 2022 before dropping 1.7% and 1.1% in December. Inventories of Gelatin were low in the domestic market due to rising feedstock costs which impacted production. Due to slow imports and a lack of truckers, the U.S. market for Gelatin remained tight. In addition, the cost of logistics had grown, mostly as a result of containers becoming stranded at ports or at sea and a lack of workers to unload the ships. In December, prices decreased as the country finally started to recover, as the U.S. supply chain gradually became better with reduced ship backlogs at the east coast port significantly. The reduced demand brought on by slower consumer spending resulted in slow manufacturing activity in December. Therefore, by the end of the quarter, the CFR Houston prices for Gelatin (BS-150) and Gelatin (BS-220) settled at USD 7985/M.T. and USD 8920/M.T. in December 2022, respectively.
During the fourth quarter of 2022, the price of Gelatin across the Asia Pacific region displayed an upward price trajectory. Between October and December, the FOB Shanghai price in China increased from USD 6520/M.T. to USD 7100/M.T. for Gelatin (BS-150) and USD 7940/M.T. to USD 8045 /M.T. for Gelatin (BS-220). The prices of Gelatin in the Chinese market were affected by the strong demand from a number of end-user pharmaceutical and healthcare industries. Low inventories among domestic merchants as a result of the suspension of manufacturing activities over the Golden Week holidays in the first week of October helped the price trend in the market. Following a one-week holiday and the market's reopening, domestic traders met several contradictory signals, making it challenging for the participants to keep up with the slow progress witnessed in the downstream industries. Government officials altered its zero-covid policies in response to complaints and significant dissatisfaction in the nation, putting the nation susceptible once more in the second half of the fourth quarter of 2022.
Gelatin's market dynamics in Europe were comparable to those in North America and the Asia-Pacific region. However, until November 2022, Gelatin's price increased. The price hike was prompted by supply shortages and continuous demand from end-user industries. Additionally, in order to enhance profit margins, domestic firms had to alter their product lineups as import costs rose. Later in December, weak purchasing activity was seen as a result of decreased demand from the local market, which led to a decrease in price. Due to their misgivings about the availability of merchandise, regional dealers in Germany lowered prices to entice customers.
For The Quarter Ending September 2022
In North America, the prices surged around 4.2% for Gelatin (BS-150) and 4.8% for Gelatin (BS-220) due to favorable sentiments in the regional market during the third quarter of 2022. However, the insufficient product availability in the USA because of inadequate supply from China caused USA's buyers to import Gelatin at an inflated price from Brazil, prompting the price rise. Since China is a significant exporter of Gelatin to the USA, the shutdown of a few production units for maintenance caused a low output, hindered supplies, and disrupted trading activities of the products. Therefore, by the end of the quarter, the CFR Houston prices for Gelatin (BS-150) and Gelatin (BS-220) settled at USD 7525/MT and USD 8890/MT in September 2022, respectively.
In Q3 2022, the Gelatin market witnessed positive market sentiments in the Asia-Pacific region, with prices following an upward trajectory due to the shortage of inventories in the market and heavy demand from the end-user sector. Industrial Gelatin manufacturing was in a low phase from July to September in China because high temperatures led to dull jelly strength and quality issues. Few factories in China, notably Ysasin Industry, a significant Gelatin producer, were involved in maintenance tasks to make sure the highest quality Gelatin to its purchasers. Therefore, for the quarter ending in September, the FOB Shanghai price of Gelatin (BS-150) and Gelatin (BS-220) in China settled at USD 6145/MT and USD 7680/MT with a quarterly inclination of 5.1% and 5.3%.
Similar market dynamics were observed in the European region during the third quarter of 2022. However, Gelatin prices climbed significantly in Germany due to a tight supply of the product in the regional market and rising requirements from the end-use pharmaceutical, food, and cosmetic manufacturers. Moreover, the weak production activities of the manufacturing plants in Germany's domestic market ushered in disrupted international trade, further pushing the Gelatin food grade prices. In addition, rising production costs, rerouting of transportation, and a cargo scarcity that increased freight costs all affected pricing in the market. Thus, Gelatin prices in Germany were assembled at USD 7360/MT in September 2022.