For the Quarter Ending March 2022
Melatonin prices in North America increased by 5.49 percent in the first quarter of 2022, rising from USD175545/mt to USD185190/mt between January and March. Demand fundamentals in H1 of Q1, 2022 remained robust, owing to continuous consumption in the domestic market, which has seen a large increase in demand among Americans. On the supply front, as dealers refilled their stockpiles in preparation for the Chinese Lunar New Year holidays, supplies were sufficient to meet consumer demand throughout the first quarter of 2022. High freight charges, protracted port congestion, and a disrupted supply chain, on the other hand, contributed to Melatonin's higher price trend in the US market.
On the strength of consistent intakes in the pharmaceutical and nutraceuticals industries, Melatonin prices rose effectively across the Asia Pacific region in the first quarter of 2022. In China, FOB prices for Qingdao and Shanghai were assessed at USD176275/mt and USD178245/mt in the month ending March, respectively. The supply chain for Melatonin, as well as numerous other active pharmaceutical ingredients, was disrupted after Chinese authorities clamped down on the movement of Tianjin, one of the main ports in Northern China, which had further reinforced the product's price trend across China. Melatonin demand increased dramatically across the country as it became popular among Chinese youngsters for treating sleep disorders. Increased raw material prices in the country have had a further impact on melatonin spot market prices. In the Indian domestic market, the market trend of Melatonin remained in an upward trajectory after the pharma grade prices got settled at USD120766/mt in March 2022.
After a minor increase in price during Q1 of 2022, Melatonin costs in Europe began to resemble those in North America. On the demand side, the Nutraceutical and Pharmaceutical industries' offtakes remained solid throughout the quarter. Limited supply, on the other hand, combined with expensive freight and transportation costs, continued to irritate market attitudes across the region.
For the Quarter Ending December 2021
The domestic Melatonin market in the US, North America witnessed mixed sentiments in the fourth quarter of 2021. The pricing trend of Melatonin observed a decline of 0.7%, as the prices for FOB New Jersey deescalated from USD 178705/MT to USD 177400/MT from October to December. Several market players remarked that demand for Melatonin has subdued following a traditional pattern where it generally declines towards Q4. The logistics availability increased in the month of November on the back of the improved supply chains across the US.
After the devastating hurricane season, stability in the shipping industry was also observed. These factors have contributed towards strengthening supply fundamentals during this quarter. It is anticipated that the Melatonin prices may increase in quarter 1 of 2022 along with the improved demand.
In the 4th quarter of 2021, the pricing trend of Melatonin demonstrated an improvement across the Asia Pacific region. In the Chinese domestic market, the prices of Melatonin observed a slight increment and were settled at USD 151075/MT and USD 151175/MT for FOB Qingdao and FOB Shanghai, respectively in the week ending of December. One of the leading Melatonin suppliers revealed that the increased demand for sleep, stress, and mood-management products pushed up this year’s sales by 20%. In the month of November, the market sentiments strengthened in China as inquiries and offtakes from the domestic as well as overseas buyers surged due to active inquiries from the consumers.
The country’s overall manufacturing output remained affected throughout Q4 due to soaring raw material prices compelled by the shortage of coal and gas due to power cuts in China which further strengthened the manufacturer’s will to raise the offered quotations for the spot market. In India, the domestic market trend of Melatonin witnessed an upward trajectory as the Ex-Mumbai prices for pharma grade escalated from USD 133930.3/MT to USD 137771.2/MT in Q4 2021.
The market sentiments improved in the European region during the 4th quarter of 2021 on the back of the increased demand from the downstream industries. However, the supply outlook of Melatonin remained disrupted throughout the quarter on the back of the peaking energy crises across Europe. Soaring freight and shipping charges have also supported the price trend in this quarter.
Overall, Melatonin market witnessed a bullish trend throughout the quarter where prices were assessed between USD 176.9 per kg and USD 177.6 per kg FOB New York. However, demand from downstream sectors has remained stable since past few months after it surged steeply in the previous quarters. Supply chain disruption due to logistics unavailability in the aftermath of peak of hurricane season and rising raw material costs were the major factors behind the recent rise in prices of Melatonin. Furthermore, resolutely high freight charges and longer lead times have worsened the market dynamics.
Prices of Melatonin were deemed high during the start of the quarter but gradually stabilized in the second half of quarter. In the beginning, uncertainties regarding demand due to resurgence of Covid cases kept producers vigilant which translated into low operating rates and strong prices of Melatonin. In August, although the demand from downstream sectors stabilized, however exacerbated freight and shipping charges further exerted an upward pressure upon the prices. Innovative marketing techniques in China gained attraction and resulted in high interest in Melatonin products towards the end of the quarter. Consequently, prices were assessed at USD 149148 per MT FOB Qingdao.
In Q3, Melatonin market remained strong in the European countries. Demand for the product has stabilized in the region as consumption levels from pharma and nutraceutical industries remained firm. Resolutely high freight and shipping charges, coupled with limited container availability continued to pressure prices throughout the quarter. Overall prices were deemed high in the quarter ending September 2021.