For the Quarter Ending June 2023
North America
The prices of Glyoxylic Acid have shown a declining trend throughout the second Quarter of 2023 in the North American region. The prices have declined by 2% from April to June in the USA on the back of declining prices of Nitric Acid, which is essential feedstock material for manufacturing Nitric Acid. In June, the FOB prices for Glyoxylic Acid settled at USD 1746/MT. Low buying enthusiasm from the downstream personal care and haircare industry and high operational expenses impacted the prices of Glyoxylic Acid in the market. Further, fewer exports to other importing counties like Canada, Mexico, Belgium, and France due to low water levels in the Mississippi River led to surplus availability of the material in the country. However, as indicated by the Federal Reserve of Economic Data, the Consumer Price Index of the USA has shown a marginal increase from 302.91 in April 2023 to 303.29 in May 2023, and the personal care index rose in May, but the Glyoxylic Acid market didn’t rebound. A potential shift towards inclining prices is expected in the coming months due to the increasing price of Nitric Acid and expensive imports overseas.
APAC
Considering the current prevailing market dynamics, the prices of Glyoxylic acid decreased throughout the second quarter of 2023. The prices have shown a dip of around 4.3% in China market on the back of diminished demand from the cosmetic and haircare industry and a decline in prices of feedstock Nitric Acid. In June, the FOB prices of Glyoxylic Acid settled at USD 1244/MT. Additionally, it has been recorded that exports from China had reduced at the end of May, leading to stockpiled inventories in the country. Low buying enthusiasm from the domestic and international markets and ample availability of the material in the market supported the prevailing price trend. Additionally, as indicated by the National Bureau of Statistics China, the Purchasing Manager Index is declining and has been recorded at 48.8 in May 2023 after a marginal decline of 0.8% from April but later rose to 49 in June, and the industrial growth rate declined from 5.6 in April 2023 to 3.5 in May 2023. However, due to economic rebound, prices are expected to show an inclining trend in the coming month.
Europe
Unlike the global market, the prices have shown an upward trajectory in the European market during the second quarter of 2023. The prices have increased in Belgium, France, and Italy by a significant margin on the back of increased demand from the downstream cosmetic and haircare industry. The FD Antwerp prices had settled at USD 3083/MT in June 2023 in Belgium, and Retail FD Le Havre prices in June settled at USD 4046/MT in France. Further, disruption in supply chains and increased demand from importing European countries have also impacted the price. Overall, the Glyoxylic Acid market remained bullish in Europe, driven by high buying enthusiasm from the end-user market. Further, the shortage in supply and increased procurement orders from domestic and international markets paved the way for the widened demand-supply gap. As indicated by Eurostat, the Industrial Production Index has decreased to 120.1 in May 2023 in Belgium and to 100.8 in April 2023 in Italy. However, this decline has not impacted the prices of Glyoxylic Acid in the European Market.
For the Quarter Ending March 2023
North America
Glyoxylic acid prices declined in the US market during the first quarter of 2023 due to weak demand from downstream sectors. Weak downstream demand and high operational expenses have an impact on Glyoxylic Acid pricing. Additionally, the demand for cosmetics remained subpar in the first quarter of 2023. Supplies of Glyoxylic Acid in the local market remained scarce and limited in the regional market. Additionally, upstream measurements first dropped before staying constant for the rest of the quarter. Furthermore, trade-in items made with Glyoxal continue to fall despite efforts to control the supply-demand balance by reducing production rates. The large stock levels in the US meant that there was not much of a market for further spot cargoes.
Asia
Prices for Glyoxylic Acid fluctuated in South Korea, China, and India during the first quarter of 2023, with variable results. Upstream Natural gas supplies were plentiful, and India's nitrogen market operated at a slow pace, which helped to maintain beneficial domestic nitrogen output. Additionally, the quantity of Glyoxylic Acid inventories remained constant. The ongoing increase in energy prices had a favorable effect on operating costs. As the costs of downstream cosmetics declined initially and then again, the downstream demand for Glyoxylic Acid remained inconsistent. Therefore, the falling downstream costs contributed to the price stability of Glyoxylic Acid.
Europe
In Q1 2023, the price of Glyoxylic Acid dropped significantly once more. The product's final price was heavily influenced by the global supply disruptions brought on by persistent shipping problems. The asking price for Glyoxylic Acid has decreased in the meantime due to the negligible inquiries from the cosmetic industries. In March, Glyoxylic Acid costs were estimated at USD 3888 per MT on a CFR basis. Prices have dropped by more than 5% since the start of the first quarter due to the continuous instability in global sectors brought on by rising inflation. The improved availability of commodities, especially feedstock Nitric Acid supply, led to a slight easing of pricing pressures in Germany during Q1 2023. Reduced downstream demand is undoubtedly concerning, but fewer issues with the European supply chain have helped to hold back the price decline in the local German market.
Glyoxylic Acid prices decreased in the American market at the end of the fourth quarter of 2022, following a price rise at the start of the quarter. At the beginning of Q4, the prices rose on the back of rising upstream nitric Acid costs. The exports from China were disrupted as a result of covid restrictions at major ports of key provinces, which contributed to the rise in Glyoxylic Acid prices in the US at the start of Q4 2022. The price of Glyoxylic Acid declined to the end of Q4 2022 and was recorded at roughly USD 1823/MT in the American market.
In the Indian market, Glyoxylic Acid prices decreased at the end of the final quarter of 2022 after rising for the previous months of the quarter due to the increasing cost of upstream Nitric Acid in the Chinese market. China exports Glyoxylic Acid to several markets in Asia, dictating the pricing trend movements in Asian markets. After mid-November, the Glyoxylic Acid in the Indian market and the Chinese market dropped due to poor demand caused by the weak economic condition in Asian markets. Similar circumstances in China and India were seen in South Korea during Q4 2022. Glyoxylic Acid price in China at the end of Q4 2022 was recorded at around USD 1352/MT.
The final quarter of 2022 witnessed an increase in the price of Glyoxylic Acid in the European market due to supply problems brought on by various restrictions in China's key port cities as a result of containment measures for Covid-19 cases. For the majority of their needs in Glyoxylic Acid, several European markets, including Italian and Belgian markets, depend on China. Throughout Q4 2022, the consistent price hike of upstream Nitric Acid contributed to the rising price trend of Glyoxylic Acid in European markets. The price of Glyoxylic Acid in European markets (German market) during the end of Q4 2022 was recorded at roughly USD 3835/MT.
