For the Quarter Ending December 2021
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending September 2021
North America
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.
Asia Pacific
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.
Europe
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.
