For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Glucosamine market in North America saw a significant downturn. This shift in pricing was influenced by several key factors, resulting in an overall decline in price trends. The USA experienced the most notable fluctuations in prices as values declined throughout the quarter. The price of Glucosamine supplements fell from $8150/mt in January to $7520/mt FOB New Jersey by March.
The market conditions were shaped by various elements, including fluctuating demand, ample product availability, rising freight costs, and a decrease in imports from Asia. To tackle these challenges, U.S. authorities collaborated with industry partners to improve the real-time monitoring of freight movements, with a particular focus on nutraceutical shipments from China. The end of 2023 was marked by disruptions in supply chains and trade due to security concerns in the Red Sea, leading to significant hikes in freight charges. These disruptions impacted trade routes, causing congestion at U.S. ports and disruptions in the Panama Canal, which in turn influenced commodity prices.
During the Chinese Lunar New Year holidays in mid-February, shipments were temporarily halted. Despite expectations of a surge in demand for nutraceuticals, including Glucosamine, following the post-holiday market recovery in China, the anticipated increase in the U.S. did not materialize as predicted. Nonetheless, demand in the U.S. remained consistent until the latter part of Q1, supported by fresh supplies from local suppliers. With a surplus of supply available, U.S. suppliers adjusted their price quotes and reduced their profit margins in March. The declining prices in March were influenced by reduced demand from the pharmaceutical and nutraceutical sectors, as well as decreasing freight charges. This drop in demand was exacerbated by an oversupply of Glucosamine from domestic sources, further complicating the market dynamics. Additionally, a decreased interest from Asian markets, particularly China, also contributed to the downward pressure on prices.
APAC
The first quarter of 2024 presented significant challenges for the Glucosamine market in the Asia-Pacific (APAC) region, particularly in China, where prices experienced a notable decline. Several factors have contributed to this downward trajectory. Firstly, there has been a noticeable reduction in demand from both domestic and international buyers, especially in the pharmaceutical and nutraceutical sectors. This decreased demand has resulted in an imbalance between supply and demand, driving prices down. Consequently, market participants were compelled to lower their profit margins to sustain their market presence. The sluggish purchasing activity in downstream sectors, coupled with reduced demand and fluctuations in raw material costs, were the primary catalysts for this price decline.
In China, which represents the largest market for Glucosamine in the region, the price decline has been particularly pronounced. The overall pricing trend in China exhibited a consistent decrease throughout the quarter. This decline can be attributed to factors such as elevated inventory levels, limited new inquiries, and a lack of market support. Chinese suppliers have been compelled to reduce their prices to diminish their stock levels and preserve profitability amid challenging market conditions.
Specifically, Glucosamine HCL prices in China dropped from $5660/mt in January to $5240/mt by March, illustrating the negative trajectory of pricing movements during the quarter. This decline underscores the challenges faced by market participants in adapting to shifting demand dynamics and the need for strategic adjustments to maintain competitiveness in a volatile market environment.
Europe
During the first quarter of 2024, the Glucosamine market in Europe, particularly in Germany, exhibited pricing trends that mirrored those observed in both the US and China, with prices declining steadily throughout the period.
The European economy faced various uncertainties during this period, including fluctuating energy costs and the implementation of interest rate hikes, which created a fragile market environment for Glucosamine. These factors complicated efforts to stabilize prices in the region. Until mid-February, several factors influenced Glucosamine prices in Germany. The escalating import costs from China, exacerbated by disruptions in the Red Sea and the Chinese New Year celebrations, exerted pressure on prices and led to diminished demand. Additionally, currency exchange rate fluctuations, such as the Euro's depreciation against the USD, further intensified the financial challenges faced by German importers.
In summary, the Glucosamine market in Germany was shaped by a combination of factors, including inflationary pressures, federal taxes, supply chain disruptions, and rising energy costs. These multifaceted challenges contributed to the overall decline in Glucosamine prices and created a complex operating environment for market participants in the region.
For the Quarter Ending December 2023
North America:
In the fourth quarter of 2023, the North American Glucosamine market experienced a blend of positive and negative trends. Fluctuating demand from end-users, high inventory levels, and diminished consumer confidence due to rising interest rates contributed to this mixed scenario. The US Glucosamine market, in particular, witnessed significant price fluctuations, reflecting instability amid subdued consumption and uncertain demand-supply dynamics.
Globally, trends, especially in China, drove Glucosamine prices upward, leading to price hikes in the United States by the mid-quarter period. Despite positive indicators in the US labor market, concerns over rising interest rates and inflation dampened consumer sentiment, impacting sectors like the dietary supplement industry. The quarter began with Glucosamine prices at $8,750/MT and concluded at $8,660/MT FOB New Jersey in December, ending the quarter on a negative note. Import levels during Q4 2023 surpassed those of the same period in 2022, suggesting retailers were preparing for the holiday season in December. Despite concerns, the US economy performed notably well in 2023, avoiding recession and showcasing accelerated growth.
APAC:
In the fourth quarter of 2023, the Glucosamine market in the Asia-Pacific region demonstrated a positive trajectory. In China’s domestic market, the prices of Glucosamine rose from $5,430/mt in October to $5,660/mt in December. These fluctuations were driven by a market equilibrium influenced by robust demand from the downstream pharmaceutical and nutraceutical industries. Similarly, India's nutraceutical market expanded due to improved economic conditions, heightened production levels, and increased new business inflows. Despite increased production, China experienced notable price increases throughout the quarter, driven by heightened offtakes both locally and globally. The enhanced interest in Glucosamine from both pharmaceutical and nutraceutical sectors was bolstered by fresh inquiries from overseas markets. However, December saw improvements in China's economy, as reflected in the Purchasing Managers' Index (PMI) and increased consumer confidence, accompanied by a gradual price uptick. Throughout the year, China's nutraceutical market encountered mixed outcomes, with certain product categories experiencing declines while others showed signs of recovery. Due to the fact of the upcoming lunar new year, domestic suppliers started restocking their shelves with fresh supplies, resulting in enhanced industrial output and high prices.
Europe:
During the fourth quarter of 2023, the European Glucosamine market experienced a mixed trend. While the market initially faced challenges due to abundant supply levels, which led domestic businesses to maintain substantial inventories in anticipation of the December holiday season, prices eventually gained momentum towards the end of the quarter. Diminished end-user demand and the ample availability of Glucosamine in the domestic market were key factors contributing to the price reduction in the first half of the quarter. This reduction was influenced by substantial stockpiles held by domestic companies, despite minimal shifts in market dynamics. A significant driver of the market dynamics was China, a major exporter that reduced the price of Glucosamine. Consequently, German importers benefited from lower prices when procuring Glucosamine supplements, leading to a corresponding decrease in prices within the local market. Additionally, the absence of fresh inquiries from end-user industries such as nutraceuticals and pharmaceuticals nationwide prompted local sellers to offer the product at relatively reduced prices. However, later, prices increased subtly due to high prices in China and increased demand in Germany.
For the Quarter Ending September 2023
North America
In Q3 2023, US Glucosamine prices fell abruptly with FOB New Jersey values falling from $9040/mt to $8650/mt between July and September, indicating a pessimistic end to the quarter. The main reasons for the significant price decline in the US market were the unusually low downstream demand and the substantial supply held by market participants. Throughout the quarter, US economic growth worried the Federal Reserve as it suggested that inflationary pressures were building. The stats claims that due to companies cutting down on hiring and production in response to a drop in new orders, the US manufacturing sector contracted in July for the ninth consecutive month. Additionally, domestic suppliers reduced their reliance on imports from abroad, i.e., China, in the third quarter, given the glut of inventories in the domestic market. This hasn't achieved anything other than to encourage suppliers to lower the price of the product. The soft-landing states have benefited from the Fed's support as a wave of positivity was seen in the latter half of the quarter.
Asia Pacific
Glucosamine HCL prices in the Chinese domestic market showed a declining trend in the 3rd quarter of 2023, falling from $5950/mt to $5370/mt FOB Qingdao between July and September. The main drivers of this price decline were low downstream demand from both pharmaceutical and nutraceutical industries in both domestic and international markets, as well as significant inventory availability from local suppliers. There were only a few fresh inquiries seen throughout the period due to which the production output also remained on the lower side. The world's second-largest economy grew slower than expected this quarter due to high deflation, unemployment, and weak international demand. Ahead of the China's Golden Week vacations at the end of September, market had little or no impact on the country's glucosamine prices, unlike other nutraceuticals, the cost of glucosamine remained relatively low. Exports of nutraceuticals, particularly glucosamine, were affected by the strengthening of the yuan and the weakening of the US dollar in the final weeks of the quarter, both domestically and internationally.
Europe
The European Glucosamine market mimicked the North American and Asian market trends, with German prices also declining in Q3 2023. Throughout the quarter, glucosamine suppliers reduced their quotations. This was due to excess stocks meeting the overall demand, which was also at the lower end. German dietary supplement importers and distributors began to report sharp declines in production, new orders, and factory prices in the third quarter of 2023, signaling that the market had really deteriorated. The steady, sharp decline in new orders - the biggest in more than three years - was another factor in the decline in sales. The geopolitical climate, tighter banking regulations and economic uncertainty all contributed to the decline in demand. According to the PMI figures, the eurozone private sector contracted in September, although the composite score rose slightly from 46.7 in August to 47.1 in September. There were two interest rate hikes by the European Central Bank during the quarter.
For the Quarter Ending June 2023
North America
The market for Glucosamine in North America displayed an unfavorable price chart during the second quarter of 2023. Between April and June, FOB New Jersey prices modestly dropped from $9350 per tonne to $9300 per tonne, a fall of -0.53% over the quarter. Lower demand for Glucosamine was seen in the US as a result of downstream nutraceutical firms' plentiful stockings. Although due to the divided opinions on the cost of dietary supplements, the nutraceuticals sector in the nation has displayed a disjointed pattern of market activity. Along with oil prices, the nation's inflation has been on the decline. Economists and Industry experts think that the reduction in supply chain pressures is to blame for the temporary drop in inflation. In contrast, rising labor costs might keep inflation high, which would probably prompt the Fed to increase interest rates once again in July. Market participants in the food and dietary supplement industries continue to have a wait-and-see attitude because the state of the US economy is still unknown.
Asia Pacific
As negotiations in China slipped from $6130 per tonne to $6100 per tonne FOB Shanghai between April and June, the market for Glucosamine in the Asia-Pacific region showed a downward pricing trend in quarter 2 of 2023. This price fall started in the latter weeks of April and grew very persistent as the demand for Glucosamine from downstream pharmaceutical and nutraceutical sectors decreased on a global and domestic level. Due to the lessened demand and consumer inquiries, Chinese glucosamine manufacturers were compelled to sell the product at reduced margins. According to the Stats, China's manufacturing activity declined in June for the third consecutive month, but at a lesser rate. The numbers are released at a time when the government is under increasing pressure to increase stimulus spending in order to assist an economy that is flattening out following an initially robust post-COVID rebound in Q1 2023. The June PMI also showed a number of imbalances and weaknesses, such as persistent losses in both domestic and international demand, quickening declines in company activity, and increasing pressure on the nation's pharmaceutical and nutraceutical industries.
Europe
In Q2 2023, the Glucosamine market in Europe was pessimistic, with price discussions marginally declining in the German market. Reduced demand from downstream industries combined with large supplier stocks was one of the primary causes of this price reduction in Germany. The cost of gas for energy in Europe reached its lowest point since the crisis's inception in April. This raised hopes for a more robust economic rebound, which unquestionably aided trade with Asia. On the other hand, the market environment was severely impacted by an unexpected increase in unemployment in Germany during June. Retailers hoarded the product Glucosamine in warehouses to prevent future shortages, which has forced them to drop their price margins later in the quarter to get rid of their stockpiles. Germany's inflation increased by more than 6% again in June, but the country's glucosamine industry has not yet been affected. Like the rest of the world, market participants are treading water and continue to be pessimistic about the nation's economic predicament.
For the Quarter Ending March 2023
North America
The price trend for Glucosamine remained stagnant throughout the first quarter of 2023, with FOB New Jersey prices reaching $9250 per MT in March. Because of the market instability in the previous quarter, industry insiders had projected that the pharmaceutical and nutraceuticals industries would continue to sail through mixed sentiments during the first quarter of 2023. However, steady demand from end users and reasonable inquiries from downstream suppliers of nutraceuticals maintained the market dynamics predictable. Since the supply chain and trade remained strong throughout the first half of the quarter, China's relaxation of its zero-covid prohibition was advantageous. This further reduced freight costs benefitting commerce.
Asia Pacific
In Q1 2023, China's decision to lift the stringent COVID-19 restrictions during the first week of January gave the trillion-dollar Asia Pacific economy that had been suffering significantly over the previous four years a fresh start. The first quarter of 2023 in China was, therefore, just marginally beneficial. With prices stabilizing at $6353 per MT in January and $6060 per MT in March, there was little change in the FOB Qingdao pricing pattern in these first three months of 2023. Following the Lunar Holiday, which lasted one week, the price of Glucosamine in the local market for nutraceuticals and pharmaceuticals witnessed a roll-over sentiment for two consecutive weeks in January. Later on, the demand for Glucosamine fell a bit from the end-users resulting in a bit low value in the latter weeks of the quarter.
Europe
The nutraceutical industries in Europe got off to a good start during the first quarter of 2023 thanks to an increase in orders and shipments from both domestic and international markets. Participants in the local market saw positive arbitrage during the vast majority of the period because of the consistent orders for Glucosamine from the end-use market. Although the European market seemed to be headed in the right direction, inflation pressures were lowered by China's COVID's unexpected reopening and the ongoing war between Russia and Ukraine.
For the Quarter Ending December 2022
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
North America
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.
Asia Pacific
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.
Europe
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
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.
