For the Quarter Ending March 2022
North America
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.
Asia Pacific
Glucosamine market in Asia entered the 1st quarter of 2022 with positive sentiments on the back of the sufficient supplies and stabilized demand. In China, following the static market trend, the prices of Glucosamine rose up from USD7589/mt to USD7655/mt between January and March. Following a spike in Omicron cases in the country, several key businesses, including NHU and ZMC, announced forced closures, resulting in price increases for several active pharmaceutical ingredients throughout the quarter. The unusual epidemic sparked panic among suppliers and manufacturers, exacerbating the country's already strained supply chain. The demand from the downstream industries remained robust starting in mid-December 2021, when companies began destocking inventories ahead of the year's end. However, after a pause over the Lunar New Year, demand for Glucosamine in the domestic market surged again later in H2 of Q1, 2022. Freight interruptions arose in Asia following Russia's invasion of Ukraine, delaying the transit of commodities.
Europe
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.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the pricing trend of Glucosamine witnessed an upward momentum in the US domestic market of North America. The FOB New Jersey discussions for Glucosamine escalated from USD 10590/MT to USD 11110/MT from October to December, showcasing an increment of 4.9% in Q4. In terms of supply, an improvement was observed in this quarter as compared to previous quarters where supply fundamentals were disrupted. The manufacturers were seen witnessing improved logistics and availability of raw materials, which provided ample opportunities to them for strengthening the supply fundamentals in quarter 4. Consumption volumes have been consistent throughout the quarter from downstream sectors resulting in a slump in demand growth.
Asia Pacific
In the Asia Pacific region, the market trend of Glucosamine demonstrated mixed sentiments in the 4th quarter of 2021. In the China domestic market, the prices of Glucosamine HCL showcased a marginal improvement and escalated from USD 7346/mt to USD 7497/mt FOB Qingdao from October to December. In the month of October, international buyers were seen complaining about the delay in deliveries due to the production condition and power shortage in the country compelled by the government’s dual control on energy policy. After witnessing a fall in Glucosamine offers in October, the prices rebounded at the start of November on the back of the consistent increase in the raw material prices at the spot market. In terms of demand, strong offtakes from the downstream pharmaceutical sector provided additional support to the manufacturers to keep the pricing sentiments on an upward trajectory. In the last two weeks of December, the cargo loading activities at the Chinese ports soared drastically as the producers were keen to destock their running inventories due to the upcoming year-end. In the Indian market, the prices of Glucosamine witnessed a hike of 5.8% and shot up from USD 7448.7/MT to USD 7887.69/MT for HCL pharma-grade in Q4. This development is majorly attributed to the consistent inquiries from the pharmaceutical industry.
Europe
In Q4 of 2021, the soaring prices of raw materials and disrupted supply chain amid the container crisis affected the nutraceutical and pharmaceutical industries across the European region. The scarcity in feedstock supplies along with high input costs due to the peaking energy crisis weighed heavily on the domestic manufacturers forcing them to trade Glucosamine at high prices. The demand for Glucosamine remained bullish from downstream pharmaceutical industries across Europe in quarter 4.
