For the Quarter Ending December 2021
Asia-Pacific region
In the fourth quarter, the Asia-Pacific market has exhibited a bullish price trend for Glyoxal by taking cues from the strong Coal and Crude Oil prices and strong feedstock Ethylene Glycol. The rising disposable income, changing lifestyle, and growing intermediate use in the chemical, pharmaceutical, and agriculture industries were the key factors that fueled the product price in the Asia-Pacific region. Haihang Group (China) experienced increased enquiries from the downstream textile due to the upcoming festival season. In addition, increased consumption of the organic compounds in food & beverage packaging has also driven the market growth causing the price hike.
North America region
The prices of Glyoxal remained sky-high in October and stabilized further in the fourth quarter across the North American region. While the downstream textile segment's demand outlook was bullish initially, it later became negative due to a lack of inquiries; pharma offtakes remained stable to solid in the meantime. Also, the derivative market and the feedstock Ethylene Glycol experienced a declining pricing trend with ample supplies during Q4 of 2021. Affected trading activity in the region due to sluggish demand and transportation restrictions on the back of rising Covid-19 cases led to a price drop in the USA.
Europe
Glyoxal prices remained in an upward price trajectory throughout Q4 of 2021 with high upstream Natural gas prices, which kept the upward cost pressure on feedstock Ethylene Glycol. Increased input raw material costs, high freight charges along with healthy demand from downstream textile and pharmaceutical industry in the last quarter further prompted the market players to hold up the prices strong for available Glyoxal in the domestic markets. Tight feedstock Ethylene Glycol supplies from Asia also aided in keeping the strong market fundamentals in Europe.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the North American market of Glyoxal showcased an upward trajectory across the North American region. Several producers raised the prices of Glyoxal in the US with several indicating towards a tentative increase in pricing by 15-20% on QoQ basis. This price adjustment is primarily driven by significant volatility in the availability and strong pricing environment of essential raw materials. Continued escalation of domestic and transcontinental freight charges increased transportations costs, and rising energy costs further exacerbated the pricing uptrend of Glyoxal in Q3 2021.
Asia
The prices of Glyoxal rose effectively in the Asian markets during the third quarter of 2021 due to the spike in the feedstock values and sturdy demand from the downstream sectors. Demand for feedstock Nitric Acid remained strong in the Chinese domestic market from other downstream sectors, while ensuring firm supply to the glyoxal manufacturers. Rising feedstock prices and high freight costs translated into increased Glyoxal prices across the region. Traders reported that inquiries from buyers have increased during Q3 as most of them are left with considerably low inventories amidst strong downstream demand.
Europe
In the European region, the raw materials were difficult to obtain while high energy rates continued to deter the production rates of Glyoxal manufacturers in Q3 2021. Buyers seemed concerned about the future availability amidst tight material and longer lead timed. The price increase was observed amidst high import prices from Asia. Buyers seemed unwilling to pay for increased offered rates and awaited discounts in the Q4.
For the Quarter Ending June 2021
North America
Despite of the industrial recovery, the demand for Glyoxal remained dull throughout the quarter across North America. While the demand outlook from the downstream textile segment remained bearish due to negligible enquiries, offtakes from the pharma segment remained stable to firm in the meantime. Negligible cargoes were exported out of the region due to slow demand and logistic delays. In addition, the price of feedstock Nitric Acid was also tracing downward trajectory, while Ethylene Glycol climbed up due to supply shortage. Therefore, the overall Glyoxal market scenario remained largely pressured during Q2 2021. However, some anticipated that economic recovery due to quick vaccination drives may lend support to the Glyoxal demand dynamics in the near term.
Asia
The demand for Glyoxal 40% remained sturdy in Asia from the pharma sector, as manufacturers exported huge number of cargoes to the buyers of neighbouring countries. China was heard exporting a large number of cargoes to the Indian buyers, majorly to the pharma sector. During this quarter, India imported around 2100 MT of Glyoxal was exported from China to India, while around 394 MT was imported from the Europe and all of these cargoes were procured by the pharma sector of India. In addition, the regional textile sector showcased dull sentiments for Glyoxal in Q2, due to lesser demand as an effect of pandemic.
Europe
The European Glyoxal market observed stability in terms of demand for a larger part of Q2, backed by stable offtakes from the downstream pharma segment. Some Indian manufacturers imported fair number of cargoes from Europe in the meantime, while domestic textile sector remained muted throughout the quarter. In addition, despite of the rising feedstock Ethylene Glycol, offers for Glyoxal fluctuated in a narrow range. Traders remained anxious about soaring freight and container cost across the key trade routes.
For the Quarter Ending March 2021
North America
The North American market struggled to maintain the production levels of major important chemicals, amidst crippled overall production rates as Winter Storm Uri hit the US Gulf coast, turning a larger chunk of the US chemical production offline for several weeks. During this quarter, many Glyoxal manufacturers complained about the unavailability of feedstock chemicals, which was creating delays in shipping orders. As there are two commercial way to produce Glyoxal, key feedstock chemicals Ethylene Glycol and Nitric Acid both showed negligible availability after major plants turnarounds led to critical material shortage and raised the product prices across the region.
Asia
Similar scenario was observed with Asia where the market faced acute shortage amid lukewarm demand. Demand from the domestic paper and textile sector drove the Asian Glyoxal market during this period. However, combined effect of low inventories due to Lunar New Year holidays, high freight cost, and shortage of feedstock chemicals, elevated the value of Glyoxal across the region. The upsurge observed initially in March was on account of supply issues as BASF was unable to export the material due to weather-related challenges. FOB Qingdao (China) price of 40% Glyoxal rose from USD 900/MT to USD 980/MT in March.
Europe
The EuropeanGlyoxal market encountered low demand from the domestic paper and textile sector during quarter. Rapid surge in the cases of COVID 19 reduced the consumption of end use products, as the lockdown restrictions created tensed environment. Despite of tepid demand, supply remained insufficient to satisfy the demand early in quarter. Later, rapid vaccination rollout and significant drop in new COVID 19 cases uplifted the market sentiments across the European countries. Thus, the prices showed overall stability throughout the quarter.
For the Quarter Ending December 2020
Asia
The Asian market monitored fine recovery in industrial activities during Q4 2020, due to a significant dip in COVID-19 cases and relaxation from logistic restrictions. While manufacturing activity ramped up in several economies to meet recovering demand, overseas shipments stood delayed due to limited container availability and higher ocean freight towards the end of the quarter. In the Indian market, prices of Glyoxal rose, taking cues from the prices of feedstock Nitric Acid and Acetaldehyde. Most sellers reported constrained availability of spot material to match the pent-up paper, polymers, textiles and leather goods.
Europe
The European market was hard hit due to second wave of COVID-19 infections during Q4 2020, that slowed down the industrial activities across the region. Demand from the domestic market was also not in good shape but seemed to improve in Q4. Pressured demand from the textile, paper and leather markets kept the sentiments low. Shutting down of a key downstream plant during October in Germany, led by leakage of raw materials triggered a temporary decrease in Glyoxal demand.
North America
The North American market was suffering from acute shortage of several feedstock chemicals during the first half of the quarter due to unplanned turnarounds and force majeures on several plants across the gulf coast region due to seasonal hurricanes in Q3. The supply of both nitric acid and acetaldehyde was kept low during final quarter of 2020. This exposed the manufacturers to feedstock-related challenges. Although the demand remained low compared to previous year, but supply showed improvement on quarter-on-quarter basis.
