For the Quarter Ending March 2024
North America
Throughout the first quarter of 2024, the Glutaraldehyde market in North America encountered a mixed pricing landscape, particularly in the USA, where prices fluctuated due to various factors. In the initial month of the quarter, prices decreased owing to cheaper imports from China and subdued demand from domestic downstream industries. However, in February, prices rebounded due to more expensive imports from China and increased demand from local downstream sectors. This uptick was supported by a slight increase in factory activities, as indicated by the inflation rate.
Price movements were influenced by several factors, including supply and demand dynamics, raw material costs, production expenses, and freight charges. Although the market experienced moderate to high supply levels, demand remained relatively subdued. Furthermore, the availability of cheaper raw materials and reduced freight expenses impacted production costs and overall pricing.
The overall trend for Glutaraldehyde prices in Q1 2024 leaned towards bearishness, with a significant decline of approximately 7% from the previous quarter. This downward trajectory was also reflected in the comparison to the same quarter in 2023, with a decline of more than around 20%. In summary, the Glutaraldehyde market in North America faced several challenges in Q1 2024, including weakened demand, oversupply, and sluggish recovery in downstream industries. These factors contributed to a bearish pricing environment characterized by declining prices and limited trading activities.
APAC
The pricing dynamics for Glutaraldehyde in the APAC region during Q1 2024 exhibited a mixed pattern, marked by fluctuations in prices. Initially, the pricing trend was negative, influenced by various factors such as weakened demand from downstream industries, oversupply, and subdued market offtakes. Factors contributing to this decline included sluggish overseas demand, reduced bids from major manufacturing units, and low demand from sectors like medical sterilization, laboratory, leather tanning, and oil and gas industries. Subsequently, prices saw an upward trend primarily driven by increased demand from downstream sectors amid tight supply conditions. This pricing trend was influenced by factors such as the Lunar New Year Festival, which caused manpower shortages and reduced manufacturing capacity, as well as logistical disruptions and high freight charges. Notably, China experienced significant price changes in Glutaraldehyde during this quarter, witnessing a notable decline. Prices decreased by 4% in the first quarter of 2024 compared to the previous quarter, and there was a substantial decline of approximately 20% compared to the same quarter of the previous year.
Europe
Throughout the first quarter of 2024, the Glutaraldehyde market in Europe encountered a mixed pricing landscape, particularly in Germany, where prices fluctuated due to various factors. In the initial month of the quarter, prices decreased owing to cheaper imports from China and subdued demand from domestic downstream industries. However, in February, prices rebounded due to more expensive imports from China and increased demand from local downstream sectors. This uptick was supported by a slight increase in factory activities, as indicated by the inflation rate. Price movements were influenced by several factors, including supply and demand dynamics, raw material costs, production expenses, and freight charges. Although the market experienced moderate to high supply levels, demand remained relatively subdued. Furthermore, the availability of cheaper raw materials and reduced freight expenses impacted production costs and overall pricing. The overall trend for Glutaraldehyde prices in Q1 2024 leaned towards bearishness, with a significant decline of approximately 5% from the previous quarter. This downward trajectory was also reflected in the comparison to the same quarter in 2023, with a decline of more than around 22%. In summary, the Glutaraldehyde market in Europe, particularly in Germany, faced several challenges in Q1 2024, including weakened demand, oversupply, and sluggish recovery in downstream industries. These factors contributed to a bearish pricing environment characterized by declining prices and limited trading activities.
For the Quarter Ending December 2023
North America
Throughout the fourth quarter of 2023, Glutaraldehyde prices experienced an upward trajectory primarily due to persistent supply tightness in the market. This tight supply situation created a scenario where demand surpassed the available inventory, leading to a continuous price increase.
Notably, from the beginning of the second month in the quarter, Glutaraldehyde prices declined. The market observed high supply levels during this period, resulting in ample stock availability. Meanwhile, in response to subdued demand, traders opted to lower prices to destock the material. Despite this, regional Glutaraldehyde markets traded sideways and incurred losses, reflecting the challenges of low demand and elevated inventories. Therefore, the combination of limited demand for fresh stocks and lower Glutaraldehyde settlements, particularly with a decline in the December settlement, further exerted downward pressure on prices.
Further, the US Manufacturing PMI was adjusted downward in December 2023, indicating a decline in both domestic and external demand conditions. Companies responded by reducing input purchases and hiring activities accordingly. In summary, according to the ChemAnalyst database, the price for Glutaraldehyde 50% was documented at USD 2035/MT FOB Houston in December 2023.
APAC
In a significant portion of the fourth quarter of 2023, Glutaraldehyde prices in the Chinese market displayed an upward inclination, attributed to heightened demand from the domestic sector. The stable prices of feedstock, coupled with robust demand, facilitated an upward trajectory in prices. The downstream sterilization industry played a pivotal role in driving firm demand for Glutaraldehyde. Additionally, data from the National Bureau of Statistics of China (NBS) reported a Purchasing Manager Index (PMI) of 49.4 percent in November 2023, indicating a marginal decrease of 0.1 percentage point from the previous month. This slight decline affected the overall climate of the manufacturing sector. Concurrently, the national Consumer Price Index (CPI) in China experienced a month-on-month decrease of 0.5 percent in November 2023. However, the latter half of the quarter saw a weakened purchasing environment in the Chinese Glutaraldehyde market. Prices consistently trended downward due to sluggish overseas demand and reduced bids from major manufacturing units. This decrease in demand and sluggish market offtakes resulted in a decline in Glutaraldehyde exports from significant production units. In the backdrop of low demand and high inventories, regional Glutaraldehyde markets traded sideways, leading to losses. According to the ChemAnalyst database, the settled price for Glutaraldehyde 50% was recorded at USD 2035/MT FOB Houston.
Europe
During fourth quarter of 2023, there was a mixed trend in the European Glutaraldehyde market, characterized by an uptick in market value during the first half of the quarter, followed by a marginal drop in the latter half. The initial upswing was driven by heightened buying activity, influenced significantly by a substantial increase in demand from downstream sectors. This surge in demand led to a swift escalation in prices as port stockpiles dwindled, prompting dealers to adjust rates upward. Despite subdued demand from the glass industry in the downstream sector, there was a noticeable increase in demand from the preservative market, contributing to the overall market momentum. In the second half of the quarter, a broader perspective emerged, revealing sustained cost pressures on manufacturers. In response to rising feedstock prices, manufacturers adjusted profit margins, leading to elevated product prices. This price increase was further compounded by market competition and the producers' ability to absorb heightened costs. Additionally, the Manufacturing Purchasing Manager's Index (PMI) witnessed a slight increase in December, indicating a positive trend in the manufacturing sector.
For the Quarter Ending September 2023
North America
In the North American market, Glutaraldehyde prices witnessed a notable decline throughout the third quarter of 2023. This dip in Glutaraldehyde price was influenced by a combination of factors. Firstly, a slowdown in the downstream sector played a pivotal role in reducing the need for Glutaraldehyde. Additionally, a decrease in export orders contributed to the subdued demand. The impact of high inflation also played a significant role in affecting consumer sentiment and led to tighter financial conditions, causing consumers to cut back on their spending. These collective factors resulted in a modest decrease in Glutaraldehyde prices. Another key factor affecting the reduced demand was the growing awareness of environmental and health risks associated with Glutaraldehyde. This awareness prompted industries to seek safer alternatives, thereby reducing their reliance on this chemical. In addition, the availability of inventories also exerted downward pressure on commodity prices, as manufacturers were selling their products with minimal profit margins. Furthermore, there was a more significant drop in new orders, resulting in reduced production. Businesses continued to reduce order backlogs and deplete their finished goods inventories. Some companies also cited a shortage of drivers as a hindrance to expedited deliveries.
APAC
The Glutaraldehyde industry in the Asia-Pacific (APAC) region faced a notable challenge throughout the third quarter of 2023 as demand from downstream disinfectant industries experienced a substantial decline. The drop in demand for Glutaraldehyde as a disinfectant sent ripples throughout the supply chain, leading to an excess of inventories. To address the surplus and adapt to the sluggish market conditions, manufacturers were compelled to reduce their profit margins for Glutaraldehyde to facilitate the sale of the stocked material. Furthermore, during this period, the region faced an elevated risk of multiple typhoons, especially in northern and southern areas of China. These weather-related challenges resulted in heavy rains and an increased flooding threat, which disrupted various industries, including the Glutaraldehyde market. Despite these disruptions, key economic indicators shed light on the evolving business environment. The overall slowdown in the Glutaraldehyde market can be attributed to a widespread decrease in global chemical demand, driven by an evident economic downturn in advanced markets like Europe and the United States.
Europe
Throughout the third quarter of 2023, the Glutaraldehyde industry in the Eurozone encountered a significant challenge as demand from downstream disinfectant industries experienced a considerable decrease. This decline in demand for Glutaraldehyde as a disinfectant set off a chain reaction within the supply chain, resulting in an excess of inventories. To tackle this surplus and adapt to the sluggish market conditions, manufacturers found themselves compelled to reduce their profit margins on Glutaraldehyde to expedite the sale of the stocked inventory. Simultaneously, the Eurozone, particularly Germany, grappled with weather-related issues in the form of heatwaves and heavy rainfall. These climatic challenges led to fluctuations in the water level of the river Rhine during the defined timeframe, impacting logistical operations and transport in the region. Fortunately, the situation improved in early August, with heavy rainfall replenishing the water levels in the river Rhine. Additionally, during August, the Consumer Price Index (CPI) in Germany rose, as reported by the Federal Statistical Office.
For the Quarter Ending June 2023
North America
Glutaraldehyde has witnessed a mixed sentiment in the second quarter owing to the demand fluctuations over the period. The price of the product surged by 5% in April but fell by 7% and 11% in the following two months. Glutaraldehyde costs rose in April as the upstream Propylene prices increased by 7% in the US market, and also, the demand from the downstream healthcare sector and water treatment industries remain significant to influence the price momentum. However, the decline by the end of the quarter can be attributed to the lower feedstock prices and sufficient inventories in the region. Further, the purchasing activities in the downstream sector have depreciated in the domestic as well as international market. On the supply side, there was a sufficient supply, and inventories were about average. Additionally, the Consumer Price Index increased by 0.1% in May, according to the US Bureau of Statistics; however, rising inflation prevented consumers from purchasing the product. Thus, the price of Glutaraldehyde in June was USD 2100/MT 50% FOB Houston (USA).
APAC
Throughout Q2 in this year 2023, the Glutaraldehyde market fundamentals remained bullish in the Asia-Pacific region, backed by the expectedly high demand in the region. The prices in China rose by 8% in April due to increased demand supported by short supplies in the country. The demand for downstream healthcare remained high in the region, while insufficient inventories have caused the costs to downshift. Further, the upstream Propylene has also supported the price trajectory. The market was impacted by inflation and economic slowdown during this period. Additionally, according to data from the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) came to 49.0 in June compared to 48.8 in May, indicating that the manufacturing activity was smooth. Although the prices surged throughout the quarter in China, however, the Indian Glutaraldehyde showcased mixed sentiments. As the prices hiked initially but dipped in May owing to the upstream Propylene prices, nevertheless, it gained momentum by the end of the quarter. Thus, the price of Glutaraldehyde in China was USD 1400/MT 50% FOB Shandong in June 2023, while in India, the price was quoted as INR 185000/MT 50% Ex-Mumbai.
Europe
During the second quarter of the year 2023, the prices of Glutaraldehyde declined in the European region, backed by the falling prices of upstream Hydrogen peroxide and lackluster demand. The upstream Hydrogen peroxide has seen a drop of 6% by the end of the quarter, supporting the downshift in prices. Further, the drop in the prices can be attributed to the ample supply in the market with reduced demand amidst a weakened global economy. The persistent inflationary pressures and the Russia-Ukraine war has impacted all the sectors in the region, including the healthcare sector. The major manufacturing companies of Glutaraldehyde reported having seen major losses in this quarter as compared to the previous year due to sluggish demand and the grim market outlook. Consumer purchasing sentiments have been affected due to the instability in market dynamics. Furthermore, the surplus inventories in the domestic market, along with competitive prices of the product, have caused the traders to sell the product at lower costs. The economy of the region is directly impacting consumer purchasing activities. Inflation in Germany slowed down from 6.1% in May to 5.6% in June, but as per data from the German Federal Statistical Office, the Consumers Price Index declined by 0.1% in May 2023. Further, as indicated by Eurostat, the Producers’ Price Index of the region declined to 138.3 in May from 143.4 in March and is expected to decline further. The average decline was 3.6%.
For the Quarter Ending March 2023
North America
North American market kept on battling with domestic issues like the banking crisis, high inflation rate, slow economic activities etc., leading to frequent fluctuations in demand for several commodities, including Glutaraldehyde. As per the data, feedstock formaldehyde prices fluctuated throughout the quarter, compelling prices of downstream derivatives, including Glutaraldehyde. As Glutaraldehyde has a wide number of applications in multiple industries, it is hard to predict the overall demand dynamics of the product, as it varies month over month and industry over the industry. However, the FED's frequent price revisions for domestic interest rates were also contributing to economic worries and impacting demand for the product.
Asia
The data shows that Asian Glutaraldehyde market fundamentals remained bearish throughout quarter 1 of 2023, owing to ample supplies and a narrow demand-supply gap. The price of Glutaraldehyde 50% FOB Shandong (China) and CFR JNPT (India) fell in March 2023 due to low demand and healthy production activities. The Chinese market saw a steep fall in price with no significant improvement in the economy and low overseas demand, while the Indian market also saw a significant fall in price due to low demand and cheaper imports from China. The supply remained stable, and producers kept their inventories flourishing under the expectation of improved demand. The market situation was bearish, and the demand remained low from the downstream procurers.
Europe
European economy kept on battling with high inflationary pressure and low demand in several downstream industries during this quarter. Due to the Russia-Ukraine war, the European economy has performed below expectations, impacting regional economic activities. Data shows that demand for Glutaraldehyde from the domestic healthcare industry has remained low, while other sectors, such as Oil & Gas and textiles, have also experienced low demand. Further, under the influence of low demand, domestic raw material prices like formaldehyde also ended up on a bearish note after facing an uptrend initially. Despite supply chain disruptions caused by snow, supplies remained stable to firm, and the narrow demand-supply gap supported a downward price trend. Additionally, the decreased threat of a recession generated hope for future demand.
For the Quarter Ending December 2022
North America
The fourth quarter of 2022 saw a decline in the cost of Glutaraldehyde in the American market. The cost of Glutaraldehyde has significantly decreased as a result of falling U.S. feedstock hydrogen peroxide costs. The domestic market had an adequate spot supply of Glutaraldehyde, and market transactions were mostly driven by demand and supply. Although the U.S. supply chain had gradually improved and was less congested in ports by the middle of the fourth quarter compared to the most severe days of the pandemic's first year, this had very less impact on the country's Glutaraldehyde price movements.
APAC
Prices for Glutaraldehyde significantly decreased throughout the course of the quarter in the Asia Pacific region, especially in China. While consumer inflation slowed in November, factory prices in China fell annually. This indicates a negative trend, such as weak demand and higher inventories among market participants, in an economy that had been hampered by strict economic controls. Glutaraldehyde's price dropped on the Chinese market in the fourth quarter of 2022 because of a reduction in purchasing sentiment brought on by the weak economies in Asian markets. The pricing trend for Glutaraldehyde was consistent with the Chinese market throughout the fourth quarter of 2022 in Japan and India.
Europe
Prices for Glutaraldehyde decreased throughout the fourth quarter of 2022 in the European market. Demand in the downstream paper and pulp industry was low in the regional markets as a result of insufficient operation rates brought on by high energy prices. Purchasing sentiment was poor as a result of lower bleaching requirements in the downstream lumbering sectors as a result of poor run rates. The order from the downstream pharmaceutical, coating, and chemical sectors increased significantly in mid-Q4, and prices began to rise moderately. Additionally, the upstream Hydrogen Peroxide prices shifted in December, the final month of the fourth quarter, which supported the somewhat rising price trends of Glutaraldehyde in Germany.
