For the Quarter Ending March 2024
North America
In Q1 2024, the North American Oxalic Acid market witnessed a variety of factors that affected market prices. Overall, market sentiment was relatively stable, with moderate levels of demand and supply. Various factors influenced the pricing environment for Oxalic Acid in the region, including demand from industries like cleaning agents, leather tanning, and solvents.
Additionally, the construction sector contributed to supporting Oxalic Acid demand, benefiting from declining mortgage rates and improving construction spending. In the United States, the market saw significant price changes, with prices rebounding in February following a decline in January.
Demand in the US was driven by strong activity in cleaning, coagulating, and metal polishing industries throughout the month. It's noteworthy that prices in Q1 2024 were relatively lower compared to the same quarter last year. In summary, the pricing environment for Oxalic Acid in the North American market during Q1 2024 was relatively stable, characterized by moderate demand and supply levels. The market was influenced by various industries' demand and the construction sector. Prices in the US market exhibited some fluctuations but remained stable overall, with a quarter-ending price for Oxalic Acid CFR Los Angeles at USD 540/MT.
APAC
The first quarter of 2024 presented a mixed period for Oxalic Acid pricing in the APAC region. While prices in China fluctuated, the overall trend remained stable with moderate supply and demand. Various factors influenced market prices during this period. In China, Oxalic Acid prices rebounded in the second month of the year due to increased demand in the domestic market and a tight supply chain caused by the Lunar New Year break.
Demand from the cleaning, construction, and metal industries remained high, impacting final prices. The resumption of production after the holiday break led to increased production and the need for manufacturers to meet demand. Despite this, demand outlook for Oxalic Acid from the iron and cleaning industries remained moderate.
Steel producers advocated for a halt on iron ore exports, leading to a rise in sales to Chinese mills and an increase in local prices. The manufacturing sector in India showed improvement, with production and sales increasing at the fastest rate in five months. Overall, the pricing environment for Oxalic Acid in the APAC region during Q1 2024 was positive, with moderate supply and demand. The market was influenced by factors such as increased demand from the cleaning and iron industries, geopolitical tensions, and global energy prices. The latest quarter-ending price for Oxalic Acid in China was USD 450/MT FOB Qingdao.
Europe
In the European region, Oxalic Acid prices experienced a mixed trend in the first quarter of 2024. Overall, the market was influenced by various factors that led to fluctuations in prices. Germany, as the largest economy in Europe, faced challenges such as high energy costs, sluggish global orders, and historically high-interest rates, which impacted the demand and pricing of Oxalic Acid. This resulted in a bearish market situation, with prices declining and a low to moderate supply. Similarly, Belgium also witnessed a bearish market, with Oxalic Acid prices decreasing due to a lack of customer interest and reduced feedstock prices. The demand outlook from industries like styrene and cumene remained low, affecting the overall demand for Oxalic Acid. The supply in Belgium was also low to moderate, with excess inventories and a simultaneous reduction in feedstock prices. In terms of price trends, both Germany and Belgium experienced declines in Oxalic Acid prices compared to the previous quarter. Overall, the pricing environment for Oxalic Acid in Europe during the first quarter of 2024 can be considered bearish, with prices decreasing and a moderate demand outlook. Factors such as high energy costs, sluggish global orders, and reduced feedstock prices influenced the market dynamics. The latest quarter-ending price for Oxalic Acid in Belgium was USD 535/MT CFR Antwerp.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Oxalic Acid market in North America witnessed a southward momentum impacted by several key factors. Firstly, there was a consistent demand from the pharmaceutical sector, leading to stable procurement activities. However, the overall demand from the domestic and international markets declined, resulting in a low overall demand for Oxalic Acid. Additionally, there was an abundant supply of inventories in the domestic market and ports, which contributed to the bearish market sentiment. Furthermore, global energy prices remained steady, leading to lower production costs.
The market faced inventory pressure due to a decrease in upstream stocks, while the stagnant production rates in the pharmaceutical industry affected Oxalic Acid consumption. Adverse weather conditions, such as rain and snow, led to a reduction in domestic corn supply, causing downstream deep-processing enterprises to raise prices slightly for restocking.
Overall, the Oxalic Acid market in North America faced a bearish sentiment in the fourth quarter of 2023, with low to moderate supply, low demand, and declining prices. The latest price for Oxalic Acid CFR Los Angeles in the USA at the end of the quarter was USD 560/MT.
APAC
The APAC region experienced a bearish market for Oxalic Acid in the fourth quarter of 2023. Prices declined due to stable demand dynamics and weak cost support. Stagnant production rates in the pharmaceutical industry led to a decrease in Oxalic Acid consumption. Abundant inventories were present in the domestic market and ports, and feedstock cornstarch prices also saw a decline. Notably, there were no reported plant shutdowns during this quarter. China, a significant player in the Oxalic Acid market, observed a decrease in prices. The domestic market and ports had plentiful inventories, and the drop in feedstock cornstarch prices contributed to the overall decline in Oxalic Acid prices. While demand from the pharmaceutical sector remained steady, there was a decline in demand from both domestic and international markets. Despite these factors, the Chinese market exhibited subdued performance, influenced by low corn prices and stable global energy prices. Regarding price trends, the closing price of Oxalic Acid in China at the end of the quarter was USD 470/MT FOB Qingdao.
Europe
The European Oxalic Acid market encountered difficulties during the fourth quarter of 2023, marked by various factors influencing pricing. Initially, the decline in manufacturing activity across the Eurozone contributed to a reduced demand for Oxalic Acid. Concurrently, a destocking trend resulted in substantial decreases in order book volumes, further impacting demand. Additionally, the lowered crude grade prices for Europe, the Mediterranean, and the United States from Saudi Arabia exerted pressure on the overall production cost of Oxalic Acid. Delving into specific country dynamics, Belgium witnessed a drop in Oxalic Acid prices in this quarter. The domestic market exhibited subdued performance, influenced by low corn prices and weak demand from downstream deep-processing enterprises, affecting pricing dynamics. The overall demand outlook for Oxalic Acid remained tepid, with limited inquiries from buyers in the food and other allied industries.
No plant shutdowns were reported during this quarter. Regarding the price trend, the latest recorded price for Oxalic Acid CFR Antwerp in Belgium at the end of Q4 2023 was USD 550/MT, reflecting a 2.6% decrease compared to the previous quarter.
South America
Overall, the Oxalic Acid market in South America faced a bearish trend during the fourth quarter of 2023, with low demand and cost pressures impacting prices. The Brazilian market experienced the most significant changes, driven by factors such as low corn prices and currency depreciation.
Firstly, there was a consistent demand for Oxalic Acid from the food and pharmaceutical sectors, which supported prices. However, the market also faced challenges due to inadequate cost support and inventory pressure. Additionally, the decline in international demand impacted the overall market dynamics.
In Brazil, which experienced the most significant changes in pricing, the domestic market operated with subdued performance. The low prices of corn, a key feedstock for Oxalic Acid production, contributed to the decrease in prices. Furthermore, the depreciation of the Brazilian Real added to the downward pressure on prices. Looking at price trends, the Oxalic Acid price in Brazil at the end of the fourth quarter was USD 545/MT CFR Santos. This represents a decrease from the previous quarter.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, demand for oxalic acid from metal cleaning, leather tanning, and wood bleaching industries increased in the third quarter of 2023, which contributed to the price increase. In July 2023, Oxalic Acid prices in the US were assessed at USD 560 per metric ton. This was a slight increase from the previous month due to increased demand from the downstream industries and supply disruptions. There were a number of supply disruptions in the North American region in the third quarter of 2023, which also contributed to the price increase. These disruptions included plant closures and transportation delays amidst Union worker strikes during the third quarter. The cost of energy has risen significantly in recent months, and this has also contributed to the increase in the price of oxalic acid, as it is an energy-intensive product to produce.
Asia Pacific
In the Chinese market, Oxalic Acid prices have shown mixed sentiments during the third quarter on the back of changing demand sentiment in the last three months. In the first couple of months, ample demand from downstream metal cleaning and other industries resulted in firm procurements as there were active procurement activities. However, procurements slowed down in the second half as the buyers remained circumspect while procuring, and there was hefty wait-and-see behavior amongst the buyers. There was a decline in demand from the international market, and thus, there were limited procurements from the overseas market as well. Hence, after the conclusion of Q3 2023, Oxalic Acid prices were assessed at USD 514 per MT on an FOB basis.
Europe
In the European region, during the third quarter of 2023, Oxalic Acid prices increased in the first half; this was due to a combination of factors, including strong demand from the end-user industries, supply disruptions, and the rising cost of energy. However, Oxalic Acid prices have dropped towards the second half of 2023 as the demand from the downstream industries eased amidst declining economic activities. After the conclusion of Q3, Oxalic Acid prices in Germany were assessed at USD 534 per MT on FD basis. Meanwhile, imports from the Asian region increased as freight charges dropped sharply during the quarter, and the global trading pattern witnessed a slowdown.
