For the Quarter Ending June 2023
North America
In the second quarter of 2023, Glycerine prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. The price was valued at the end of Q2 2023, representing an average quarterly decline of 1.53%. At the beginning of Q2 2023, Prices for Glycerine in the United States have increased by more than 1% as merchant stockpiles have shrunk, and the downstream demand has significantly increased. Additionally, according to market analysts, with the commencement of the new quarter Q2 2023, inventory replenishment activities with fresh stock kept the market robust. Later from the second month of Q2, Due to the imbalance between supply and demand, Glycerine prices in the US market declined significantly during this quarter. Due to exceptionally low offtakes in the end-user industries, domestic suppliers have an abundance of Glycerine in warehouses, which results in continually lowering costs in the home market. Furthermore, the prices of raw materials used to produce Glycerine, such as palm oil and other edible oil, have fallen recently. This also contributed to the price drop. The biggest drop in US producer prices since the pandemic's beginning was caused by lower gas prices, which served to ease inflationary pressures. The cost of energy, which is a major input cost for soda ash production, has declined in recent months, due to the slowdown in the global economy and the decline in the price of oil further supported the lower trajectory of Glycerine.
Asia
The market price of Glycerine in the second quarter of 2023 witnessed fluctuating trajectory. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 0.77%. In the Indonesian market, the glycerine market showed a considerable increase in the price trajectory. Increased edible oil mainly palm oil prices in the Indonesian market on the back of increased demand and labor shortage due to the Islamic month of Ramadan. Indonesia, the world's top exporter of glycerine and the largest producer of palm oil tightened trading laws this year. Indonesia is also a major producer of glycerine, and several factories in the country have been operating at reduced capacity due to labor shortages. With energy prices skyrocketing throughout the world, Indonesia, the largest producer of palm oil, increased the required percentage of palm oil in biodiesel from 30% to 35% starting in February which automatically increase its demand. This move was made to cut imports of diesel fuel and lower emissions. In the mid of Q2, the demand for glycerine has been weak in recent months, due to the COVID-19 pandemic and the war in Ukraine. The COVID-19 pandemic has led to a decline in demand for several products that use glycerine, such as cosmetics and pharmaceuticals. Also, enough inventories among the suppliers are likely to keep the market feeble.
Europe
In the second quarter of 2023, glycerine witnessed an overall appreciating pricing trend. Glycerine prices stably incline by an average quarterly inclination of 0.21%. The fundamentals of the market suggested that increased domestic demand was the primary factor driving up glycerine prices in April. New output in the exporting countries in response to growing demand and high energy prices is probably what will drive the market in Germany. Price hikes for palm oil that is suitable for human consumption and animal feed would affect the glycerine industry. Later, the market for Glycerine continued to be unfavorable again in the month of June after a considerable fall the month before. Once more, the decline in end-user sector consumer demand and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Glycerine import prices. Also, the price of raw materials used to produce Glycerine API, such as palm oil and other edible oil, has been falling in recent months. This has also contributed to the decline in prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Glycerine market observed price fluctuation in the North American region. Prices were witnessed to be on the lower end till the termination of the first month of Q1 2023 because of weak domestic seasonal demand, according to market fundamentals. The fact that domestic retailers had ample inventories also influenced the market scenario negatively. The slowing Glycerine market, brought on by falling feed palm oil and other edible oil prices, also affected the production cost. Weather forecasts for Belgium were milder than anticipated, and storage levels were at all-time highs. Later, with the commencement of the second month, the prices went stable. At the end of the first quarter, Glycerine values were accessed at USD 1925/MT with an average quarterly declination of 4.79%. Additionally, the oleochemical business is rising, and biodiesel output is increasing, both of which positively affect the Glycerine market situation.
Asia
The market prices for Glycerine relinquish significantly in the first quarter of 2023 as a result of a decline in seasonal demand from the downstream food, pharmaceutical, and healthcare industries. The prices were accessed at USD 650/MT FOB Jawa Barat (Indonesia) and USD 710/MT Fob Johor (Malaysia) at the termination of Q1 2023, with an average quarterly declination of 7.03% and 5.42%, respectively. The price trajectory for the feedstock edible oil, such as palm oil, also showed a sharp fall, which had a detrimental impact on the glycerine market. Also, domestic merchants had to drop their quotations to clear stock because the demand from the domestic market was lower than usual, and the volume of orders was lower than typical from the international market too. The downward trend of the feedstock palm oil and other edible oils also supported the Glycerine trajectory. Nonetheless, the prices were recorded to stabilize at the termination of Q1 2023, backed by static demand and enough inquiries from the overseas market.
Europe
In the first quarter of 2023, the prices for Glycerine in the European market showcased a Mixed trend. At the end of the first quarter of 2023, Glycerine values were accessed at USD 1880/MT CFR Hamburg with an average quarterly declination of 3.32%. Due to lackluster demand from the domestic market, the market fundamentals showed that Glycerine prices depreciated throughout January. The availability of sufficient inventories on the shelves of domestic merchants had combinedly impacted the market situation. Decreasing palm oil and edible oil (feed) prices additionally influenced the production cost keeping the Glycerine market feeble. With storage at record highs, Germany’s weather outlook was in a milder position than anticipated, which has somewhere supported the low offshore demand and prices of Glycerine. New production in the exporting countries in response to rising demand and high energy prices is likely to drive the market in Germany. Increased feed palm oil and edible oil prices will likely influence the Glycerine market. After following a consistent decline over the past few months, the prices of Glycerine are now gaining their normal trajectory in the German market.
In the fourth quarter of 2022, Glycerine market patterns witnessed fluctuation in North America. Prices were witnessed to increase till the second month of the quarter, starting with Q4 2022, because of the high cost of manufacturing, numerous logistical issues, and rising inflation. Rising transportation costs and port congestion at the key ports also helped to keep the market position strong. Additionally, the market benefited from the disarray in Glycerine production brought on by higher energy prices. Later in December, prices started to drop due to seasonal end-user sector demand. Additionally, the merchants' sufficient stockpiles in relation to demand kept the market weak. At the end of the fourth quarter, Glycerine values were accessed at USD 3080/MT with an average quarterly inclination of 0.35%.
The market prices of Glycerine in the fourth quarter of 2022 witnessed a substantial drop on the back of decreasing seasonal demand from the downstream pharmaceutical, food, and healthcare sector. The prices were evaluated and accessed at USD 1050/MT Fob Johor (Malaysia) and USD 920/MT FOB Jawa Barat (Indonesia) at the termination of Q4 2022, with an average quarterly declination of 14.95% and 15.92%, respectively. The raw material palm oil and other edible oil prices also showcased a significant decline in the price trajectory affecting the Glycerine market negatively with low input cost. Furthermore, the suppliers and domestic merchants also decide to recuperate the prices to the pre-pandemic level to maintain a stable market trend. Moreover, low demand on the back of unforeseen weather conditions across the globe caused orders from the downstream sector to shrink at a faster rate.
The prices for Glycerine in the European region showed a see-saw tendency in the fourth quarter of 2022. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which led to price increases in the first two months of Q4 2022. Glycerine trajectory was also affected by the high freight costs. Due to the impending holiday season, European retailers have decided to refill their inventory in order to meet demand and maintain the supply-demand equilibrium. Nevertheless, December sees a price decline as a result of rising in-built inventories and declining end-user sector demand. Also, the freight cost dropped significantly, affecting trading activities and keeping the market at ease. At the end of the fourth quarter of 2022, glycerine values were accessed at USD 3070/MT CFR Hamburg with an average quarterly inclination of 0.46%.
