For the Quarter Ending December 2022
The 4th quarter of 2022 saw a continuation of the decline in Glucosamine prices as a result of persistent market volatility in the U.S; FOB New Jersey prices fell from $10200/mt to $9850/mt from October to December. Imports from China were capped during the first week of October due to the Golden Week holiday. To meet the demand, several domestic merchants had to increase their price offers. Offtakes in the end-user industries were consistent throughout the quarter in terms of demand. Supply chains were in danger for most of the quarter because of China's Covid lockdowns, Russia's turmoil in Ukraine, rising U.S. inflation, and extreme weather. However, the second half of 2022 saw a steady improvement in the U.S. supply chain as the economy began to grow, and the ports saw a considerable reduction in ship backlogs after a protracted port backlog.
During the fourth quarter of 2022, the domestic Glucosamine market in China displayed signs of contraction, with FOB Qingdao values dropping from $7210/mt to $6530/mt from October to December. The first week of October saw a continual decline in export orders for China's nutraceutical manufacturing industry as a result of the shutdown of industrial facilities for the Golden Week. Due to the variety of conflicting signals that Chinese traders dealing with the return from the Golden Week holiday had to deal with, it was difficult for the market to catch up to the modest gain observed in several downstream industries during the initial half of Q4. Large inventories allowed domestic producers and suppliers to meet all domestic demand for the whole quarter. In reaction to criticism and severe turmoil in the country, the administration revised its zero-covid policies, which once again made the country vulnerable.
The European Glucosamine market continued to contract in the 4th quarter of 2022. The downstream pharmaceutical and nutraceutical industries struggled because of rising raw material and energy costs, albeit they had favorable offtakes in terms of demand. Despite rising energy costs and supply-chain glitches, Germany's industrial production climbed modestly in October. However, the problems with COVID-19, in addition to the situations in Russia and Ukraine, all continued to have a negative impact on productivity.
For the Quarter Ending September 2022
During the third quarter of 2022, the price of Glucosamine declined significantly, with prices in the domestic US market falling from $10850/MT to $9660/MT FOB New Jersey from July to September. The companies producing Glucosamine were compelled to reduce prices due to the periodic lockdowns in China, where most nutraceutical products are imported. As a result, the second half of the year saw a slight decline in demand in the US. The Biden administration tried to lower inflation by removing some tariffs on imports from China as the two biggest economies in the world grappled with clogged supply chains and rising oil prices. US imports significantly declined as a result of the closure of production facilities in China, many of which were shut down for maintenance throughout H2 of Q3.
The price trend for Glucosamine in the Asia Pacific market decreased during the third quarter of 2022. This price trend has been impacted by a number of factors, including declining raw material costs, changing consumer spending, and weak end-user demand. Only purchases from significant suppliers for immediate consumption were noted during the first half, with FOB Qingdao prices settling at $7560 per MT in July. This was caused by the weak downstream demand and the below-average offtakes. However, after the markets reopened in the final week of July, certain facilities that make nutraceuticals underwent maintenance, reducing the amount of Glucosamine that was available to the suppliers. Later, extremely poor domestic downstream pharma and nutraceutical demand led to price declines and a September settlement of $6850 per MT.
German Glucosamine price trend showcased a downward trajectory during the third quarter of 2022. This quarter's economic slump was made worse by Germany's logistical problems as transportation bottlenecks persisted. The continued lockdowns in Chinese ports and the turmoil in Russia and Ukraine made the situation in Europe worse. Domestic retailers cut their prices in the second half of the quarter as a result of the weak demand from pharmaceutical and nutraceutical end users.
For the Quarter Ending June 2022
On a high note, the market for Glucosamine started in the second quarter of 2022, but in June, prices dropped to $11580 per MT. On the demand side, over the entire quarter, offtakes from end-user industries like the pharmaceutical and nutraceuticals sectors remained steady. The COVID shutdown imposed in late April in China's main business hubs added to the long-standing supply and port bottlenecks, further extending the import delays and shortages in the US markets. Concerns that the COVID-19 lockdowns in Shanghai would be lifted later in the spring led to another cargo surge at Californian ports. Domestic traders were concerned about high raw material prices during H1 of Q2 2022 due to the fact that long-term inflation expectations remained anchored, the political situation between Russia and Ukraine did not improve, and crude prices were incredibly unpredictable. May saw a modest rise in monthly import, consumer, and production spending because of the wildly fluctuating oil price in May. Despite the Asian blockades, ocean cargo from China was transiting without any problems via the country's major ports in June.
Because of the lockdowns implemented in the main industrial hubs, which disrupted the supply chain for the product, the price trend for Glucosamine showed a decreasing trajectory throughout the Asia Pacific region during Q2 2022. In China, prices for FOB Qingdao dropped between April and June from $7750 per MT to $7500 per MT. In the first half of the quarter, China's Glucosamine production increased due to the opening of its ports and factories. China's authorities put large production facilities on lockdown following a spike in COVID-19 cases during the last week of April, which caused various reactions in the country's nutraceutical markets. On the demand front, Offtakes from the end-user industries were stable throughout the quarter. Numerous cargo ships were stranded in ports due to the nation's absurd Zero-COVID policy, which increased inflation and freight prices. Numerous factories were prepared to offer the product at a discount toward the end of the quarter due to the high COVID duties to evacuate inventory before it degrades. Glucosamine prices in the domestic Indian market decreased this quarter from INR 828100/mt to 810500/mt.
In Europe, the domestic market trend for Glucosamine remained positive during the second quarter of 2022, even if prices began to fall around June. Trade activity from importing countries was mostly constrained due to the Russia-Ukraine conflict, which increased freight prices and disrupted the European supply chain. Demand from end-user sectors, including the pharmaceutical and nutraceutical industries, remained constant during the entire quarter. But the suppliers had enough inventory to meet the whole domestic demand.
For the Quarter Ending March 2022
During Q1 of 2022, the prices of Glucosamine witnessed a marginal increment in the US domestic market and rose from USD11275/mt to USD11530/mt between January and March. The demand for Glucosamine grew immensely amongst the geriatric population to treat disorders related to bone & joints such as osteoarthritis and arthritis in the region. On the supply outlook, inventories were ample enough to cater to the overall demand as the traders stocked their shelves over the fear of closure of the overseas markets ahead of the festive season in Asia. The costs of Ocean freight on the major trade lanes remained stable but were elevated. After the ease in Covid-19 restrictions by the Biden authorities in H2 of Q1, 2022, the prolonged shortages and high raw material prices got worse by the new wave of global supply-chain disruptions due to the Russia-Ukraine conflict. The prolonged congested port operations and labor contract negotiations bothered the market sentiments throughout the quarter.
Due to regular offtakes in downstream industries, the pricing trend for glucosamine in the European region remained stable during Q4 of 2022. During the quarter, market sentiment was influenced by rising raw material costs and a lengthy supply chain disruption. Domestic manufacturers were forced to trade Glucosamine at high prices due to a paucity of feedstock sources and high input costs as a result of the peaking energy crisis.