For the Quarter Ending March 2024
North America
The pricing dynamics of H.M. Pectin in the North American region during Q1 2024 showcased an overall mixed trajectory with prices rising steadily in January, then dropping suddenly in Feb by more than 7 percent and rebounding steadily in March 2024. however, the market overall dropped considerably depicting a pessimistic trajectory. Initially, in January, the market witnessed a market a steady rise in downstream consumption of Pectin-based products such as jams, jellies, and bakery items across the local market after the end of the New Year holidays as a result industries focused on higher procurements of the product to start the new quarter with fresh batches.
However, this trend was significantly shifted on the downward side. This trend was influenced by various factors, including an excess of inventory, reduced downstream demand, fluctuating trade momentum, and cautious purchasing practices. The presence of higher-than-usual stockpiles among market participants and continuous declining downstream purchasing activity prompted suppliers to focus on clearing existing inventories, leading to continued price decreases.
Ahead of a consistent drop in regional quotations, the downstream manufacturing activity in the USA's food and pharmaceutical industries, where H.M. Pectin is used as an excipient, further declined, with merchants majorly focused on destocking inventories and further avoiding additional storage costs. Overall, the buying sentiment for H.M. Pectin remained subdued, with the quarter ending March demonstrating a steady rise in prices settling at USD 10755/MT CFR Los Angeles with a balanced supply-demand side.
APAC
In the first quarter of 2024, the pricing dynamics of H.M. Pectin in the APAC region displayed a varied pattern, characterized by a steady increase in January, followed by a sharp decline of over 8 percent in February, and a subsequent gradual rebound in March. Initially, there was a modest rise in H.M. Pectin prices, driven by heightened demand in sectors such as food and beverages, personal care, and preservatives. However, logistical challenges intensified due to rising freight and transportation costs, exacerbating the supply-demand imbalance and leading to increased procurement costs for importers. As the quarter progressed, prices experienced a notable downturn due to factors including subdued demand, surplus inventory from the prior month, and sluggish trade activity both domestically and internationally. Despite expectations for increased demand for Chinese exports, particularly in the previous month, the anticipated rise did not materialize, creating uncertainties regarding buyer behavior and market dynamics. Furthermore, the depreciation of the Chinese currency (CNY) against the USD played a significant role, bolstering market resilience and positively affecting price trends. Importing regions capitalized on the weakened CNY to adopt cost-effective procurement strategies, fostering an overall optimistic market sentiment. Nonetheless, despite these positive indicators, purchasing activity for H.M. Pectin from downstream and overseas markets remained subdued until February, with a gradual resurgence observed as the quarter approached its end in March 2024. This upward trend, amounting to a 0.77% increase, resulted in a more balanced supply-demand scenario, with the supply side adequately meeting overall demand. With this overall, the price was settled at USD 10480/MT FOB Shanghai.
Europe
Similar to that of other exporting nations, in Q1 2024, the pricing trends of H.M. Pectin in the European region, particularly in Germany exhibited notable fluctuations. January witnessed a consistent upward trend, succeeded by a pronounced decrease exceeding 17 percent in February, and succeeded by a gradual recovery in March. Starting with January 2024, the market witnessed a steady rise in prices marking a continuous rise in regional and overseas quotations from end-user sectors. This was supported by the higher cost of freight added to export challenges, such as the redirection of shipping routes via the Cape of Good Hope to avoid the Red Sea, which has triggered a chain reaction of consequences. These include heightened shipping costs, order cancellations, and delays in container movement thereby affecting the delivery of the products across the importing nations. Furthermore, as February 2024 commences, the H.M. Pectin market in Europe experienced a predominantly downward trajectory which was supported by various factors supported as a sudden drop in regional and overseas quotations. Businesses found stability in existing stockpiles, allowing strategic management to mitigate potential adverse impacts on profitability. Adding to this, the persistent Red Sea crisis disrupted trade activities, causing delayed consignment arrivals and increased difficulty and expense in exporting fruits and vegetables. Stricter packaging rules also led to more food spoilage during transport. Consequently, traders were reluctant to provide new quotations, leading to an overall price drop for Pectin in February 2024. Additionally, inconsistent consumer demand for feedstock citrus fruits across neighboring regions and the depreciation of the Euro against the US dollar added to the challenges, resulting in weak sales performance from Germany as traders were reluctant to place newer quotations. Overall, the pricing environment for H.M. Pectin in Europe, particularly in Germany, was negative in Q1 2024, marked by a significant price decline albeit a modest rise witnessed again as the quarter ends in March with prices assembled at USD11500/MT FOB Hamburg.
For the Quarter Ending December 2023
North America
The North American market for H.M. Pectin Exp. experienced a decline in prices in October 2023, attributed to increased production by manufacturers in exporting nations and a decrease in fresh orders from both domestic and international sources. Additionally, favourable weather conditions in key citrus-producing regions led to higher-than-expected yields, resulting in an overall surplus in supply and contributing to market volatility. Sluggish downstream demand, few purchases, and high inventory pressure for manufacturers characterized the market environment in October.
However, starting in November, the pricing chart for H.M. Pectin in the North American region, especially in the USA, took an upward trajectory. This price escalation was primarily driven by the strong market activity in the upstream sector, particularly in citrus fruits, which maintained robust prices throughout November 2023. Global supply chain disruptions in the same month caused delays and increased transportation costs for citrus fruits, leading to higher prices for consumers and further contributing to the rise in downstream H.M. Pectin prices. This upward trend continued until the final weeks of December 2023.
On the supply side, merchants faced limited stockpiles of Pectin with continuous incoming inquiries, prompting them to raise domestic quotations. Rising freight costs, particularly due to disturbances in the trade activity hindered the efficient movement of goods, resulting in increased lead times and contributing to the overall price rise in December 2023, according to market experts.
APAC
Throughout the entire fourth quarter of 2023 in the APAC region, the pricing of H.M. Pectin experienced a slight decrease early in Q4, followed by a significant rise in November, continuing a similar upward trend in December. Initially, the prices dipped due to weak demand observed from domestic merchants in the F&B industries. Additionally, ample availability of citrus fruits in China in 2023 led to an increase in pectin production. However, a moderate decline in downstream consumption within the end-user sector prompted merchants to further reduce prices, aiming to clear excess stock and maintaining a bearish market sentiment. Moving into November 2023, there was a minor increase in consumers' purchasing activity in both domestic and foreign markets. Market participants actively sought to decrease their stockpiles, recognizing the need for increased trade volumes from importing countries. The trading landscape showed a positive trajectory, partly influenced by rising ocean freight costs, contributing to an overall increase in export prices. This upward price movement persisted until the end of December, fuelled by heightened costs in the upstream citrus fruit market. The holiday season, encompassing Thanksgiving, Christmas, and New Year's, saw a surge in demand for citrus fruits due to their popularity in holiday meals, decorations, and gift baskets. This increased demand often exceeded the available supply, leading to elevated prices. Consequently, higher costs affected the downstream food industry for H.M. Pectin. Global supply chain disruptions, including port congestion and shipping delays, played a significant role in impeding the timely delivery of upstream citrus within the region, resulting in shortages, and further driving up prices in downstream industries.
Europe
Throughout the European region, the pricing trends of H.M. Pectin followed a varied trajectory, experiencing an increase in October, a decline in November, and a subsequent rebound as December comes to a close. Commencing with October, the consumption of H.M. Pectin in the German market, encompassing the food and beverages sectors, remained consistently high. This was reinforced by elevated input costs, which increased the overall expenses for citrus fruit growers in their production processes, leading to a higher cost of downstream products like Pectin. The reduced supply of citrus fruit from various parts of Europe intensified competition for the remaining stock, resulting in a significant increase in production and transportation costs. In recent months, there has also been a notable uptick in the costs associated with producing and transporting citrus fruit. However, by November, there was a decrease in downstream offtakes for H.M. Pectin from the food and pharmaceutical industries, influenced by changing consumer preferences and heightened industry competition. This led to a drop in prices as retailers offered substantial discounts to attract customers and reduce inventory levels. Nevertheless, towards the end of December 2023, the prices of H.M. Pectin in the German market experienced a moderate rebound. Market experts attributed this price increase to several factors. The shift in pricing dynamics has significant implications for market experts and traders who strategically stockpiled products in anticipation of an expected surge in demand from their respective end-user sectors. The initial anticipation was based on the expectation of increased inquiries from the downstream sector, prompting proactive accumulation of excipients. While, on the upstream side, the year 2023 proved highly favorable for citrus activity in the market, positively impacting the prices received by citrus farmers. Raw material values remained robust throughout the year in both the natural market and the industry, reaching record levels in real terms and contributing to a year of substantial profitability.
For the Quarter Ending September 2023
North America
The Pectin market across the North American region, primarily within the United States, continued to follow its optimistic market outlook for the entire third quarter of 2023. Based on market participants' analysis, the US Census Bureau reported a moderate rise in the Manufacturing Purchasing Managers' Index (PMI) for the United States, rising from 46.3 in June to 49 in July. This marks the second consecutive month where the PMI has exceeded 50, indicating growth in the manufacturing sector. Additionally, the consistent rise in consumption in the food, pharmaceuticals, and other industrial sectors owing to the tenacious hot and dry weather across the United States led to a rise in the price of Pectin. The arrival of the Hurricane in late August had an impact on the citrus fruit crops. The hurricane winds broke branches, uprooted trees, and damaged fruit. Flooding caused by the hurricane-damaged citrus trees and fruit led to a shortage of upstream material within the regional market. Moreover, rising fuel prices have an impact on the total cost of transportation, which drives up the cost of shipping HM Pectin to the US Further to this, market participants and traders in the United States market concentrated on keeping enough stocks for HM Pectin to meet any unexpected incoming orders that might have come from the domestic market due to the arrival of the Chinese Golden Week holiday, which temporarily shut down manufacturing facilities. Additionally, this maintained the northerly market trajectory for HM Pectin merchants across the regional market, who were focusing on stockpiling their inventories to meet the consistent rise in the demand side.
Asia Pacific
Throughout the third quarter of 2023, the prices of Pectin continued their upward trajectory. The country's demand side experienced a slight improvement compared to previous months, fostering a more optimistic atmosphere. Upstream procurement activities surged, evidenced by increased incoming procurement and higher regional orders. Some producers and suppliers capitalized on this trend, selling off their existing stockpiles at higher prices to recover losses. However, the trade momentum suffered due to high temperatures, causing shipment delays and driving prices up in July. July marked a turning point as the Consumer Price Index (CPI) in China shifted back into positive territory after a reading of -0.3%, indicating an anticipated rise in August. This positive trend was bolstered by the first simultaneous increase in output and new orders observed in the past five months. China's official NBS Manufacturing PMI for August 2023 surpassed market expectations, reaching 49.7, up from 49.3 in July, indicating sustained high manufacturing activity. As September commenced, the onset of the peak season for citrus fruits in China, including oranges, tangerines, and lemons—primary sources for HM Pectin production—impacted the product's overall pricing. This influx of fresh citrus fruits ensured consumers easy access to abundant, high-quality produce. However, extreme weather events like recent floods and droughts in China continued to affect pectin prices, reducing their supply and thereby driving up pectin prices due to increased scarcity. Overall, the third quarter of 2023 witnessed a significant price hike for the entire Q3 of 2023.
Europe
Throughout the third quarter of 2023, the demand for Pectin in Germany continued to soar. As consumers increased their need for Pectin, market players hurried to secure their supplies. This surge in demand provided traders with an opportunity to sell their goods at higher prices, ensuring profitable transactions. Furthermore, The weather disruption, limited supply, and a notable rise in HM Pectin consumption in the food and beverage industry were the main causes of this price increase. To top it all off, in September 2023, the cost of upstream citrus fruits increased steadily in Germany. In September 2023, Germany's citrus fruit supply was largely stable. But during the summer and fall, when people are searching for hydrating and energizing snacks and beverages, demand is usually higher. Since September 2023 was a comparatively cool month in Germany, there was a steady demand for citrus fruits, which further influenced the market activity of downstream H.M.Pectin. Additionally, the optimistic market trend for Pectin was further bolstered by a significant increase in the demand in the upstream sector. The robust market trading atmosphere persisted as traders consistently restocked their shelves, procuring the end-product Pectin at a higher US dollar rate. This rise in procurement costs was a direct consequence of the Euro depreciating against the USD.
For the Quarter Ending June 2023
North America
Pectin prices throughout the second quarter of 2023 showcased a decreasing trend like that of APAC with a moderate increase in Q2. At the start of Q2, Pectin prices improved slightly due to its increased uptake from downstream pharma, food, and cosmetics sectors. Suppliers slightly raised domestic prices due to an increase in cost of production in exporting countries which improved market activity. As we moved into May, prices started to decline significantly which was reinforced by waning upstream costs. In addition, given that North America’s consumer price index (CPI) in the majority of North America (U.S. measured at 0.1% in June 2023 vs. May, domestic Pectin suppliers have enough Pectin inventory to satisfy nearby demand until the final weeks of June 2023.Contrary to the drop in the Pectin price, the citrus fruit availability increased. The availability of lemons more than doubled while the availability of limes increased during this period. The year-on-year variation in citrus fruit availability is due to variations in production caused by weather conditions and lower the volume of import or export of Pectin into the United States, affects the overall market sentiment of its downstream pectin. In June, the cost of Pectin across the district in Los Angeles was $10735/MT CFR Los Angeles.
Asia Pacific
Pectin prices across the APAC region reflect a declining market sentiment. However, as the second quarter started, Pectin prices increased across the entire Chinese market. The increase in prices in April was mainly due to the surge in demand from End-use industries such as Pharmaceuticals, Food and Cosmetics. Production rates were also increased to replenish inventories and to meet the surge in inquiries from the global market. The market situation remained robust until May, when Chinese exports performed well as domestic as well as international inquiries were above average and ocean freight rates were low. As the second quarter came to an end, the Pectin prices started to drop significantly throughout June. The price trend was further supported by a sudden decrease in domestic demand, which led to a higher accumulation of inventories in the nation. As a result, the finished products are being priced below their cost of production. In June, China's manufacturing activity contracted amid a decrease in export orders in various sectors such as Pharmaceutical and Food industries. An official survey confirmed weak domestic demand, adding further stress to the already fragile economy facing weak global demand. With this, the prices for Pectin at the end of the second quarter were settled at USD 10450/MT FOB Shanghai in China.
Europe
Pectin prices in the German market show a decrease in sentiment in the second quarter, with a slight increase in May. In April, the depressed market environment of pectin was caused by the local retailers' high stock levels and decreasing demand. However, as May commenced, the prices of pectin increased at a moderate level due to the large supply holdings of the market suppliers and the moderate demand of the end-users. In addition, due to seasonal variations, the merchants decided to reduce their stock levels to avoid any losses. However, according to preliminary data released by the Federal Statistical Office (Destatis), the Consumer Price Index (CPI) in Germany increased by 6.1% in May 2023 compared to a year earlier, further supporting the optimistic market trend in May. As we approach the end of Q2, Pectin prices in German market decreased in the course of June due to lack of end user demand. However, buyers were reluctant to make large orders as monsoon season approached and restocking was stopped due to the higher risk of damages. Suppliers were offering Pectinate at lower price, but buyers were waiting to see if the price would decrease further. Although import bids increased this week, it was still significantly lower than domestic prices in German spot market. With this, the prices for Pectin Excipients in the German market were assessed at USD 10280 /MT CFR Hamburg.
For the Quarter Ending March 2023
North America
The first quarter of 2023 saw a steady price trend for Pectin in the North American Region. In Early January, prices displayed an incremented trend due to an increase in demand which was balanced with the supplies among the local merchants. Also, an easing of trade activity and an ease in inflation had an impact on the general market trend. During the mid of the first quarter, the markets in the U.S. improved to some extent, but still, the demand from various sectors decreased, owing to which domestic retailers pulled back their newer orders from export nations and focused on destocking their piled-up stocks. As the first quarter concluded, the prices started to stabilize and were settled at USD 12670/M.T. in the United States.
Asia Pacific
During the first quarter of 2023, prices for Pectin declined in the APAC region. The demand for food and beverages fell in January 2023 as the market struggled with ongoing COVID issues. This led to a downward price trend. Additionally, the production capacity for citrus fruits remained stable, which in turn kept pectin market sentiments on the weak side. Prices of H.M. Pectin continued to decline through the middle of the first quarter of 2023 despite decreased consumer interest and weaker international market demand. As March came to a close, High Methoxyl (H.M.) Pectin prices began to rise slightly as a result of an improvement in overall demand from the end-user pharmaceutical and food sectors. Furthermore, compared to the previous month, market participants' inventories remained adequate to meet up the demand witnessed this month. With this, the cost of Pectin at the end of March stabilized at USD 11790/M.T. in China.
Europe
Pectin prices during the first quarter of 2023 improved in the European region, primarily in Germany. The market trend boosted in early January and continued to follow a similar trend until the end of the first quarter. The domestic market's inquiries increased steadily over the previous quarter. To avoid a shortage, market participants continued to concentrate on increasing their stocks of Pectin. Additionally, compared to the previous quarter, the trend for this excipient at the end of the first quarter was supported by increased trade flow and simpler logistic expenses. The prices reached an assembly price of USD 10490 /MT CFR Hamburg in Germany during the month of March.
For the Quarter Ending December 2022
North America
The prices of Pectin in the North American region plummeted at the end of the fourth quarter of 2022. As with the start of the winter month, i.e., October, the prices witnessed were on the upper side owing to an increase in end-user demand. Inflation during October thus decreased substantially compared to September, even though it remained well above the upper boundary, which affected Pectin's market sentiments. Following mid-q4 supply, chain disruption started to subside along with shipping charges, which didn't support the price trend for Pectin in the United States as the inquiries remained low, keeping its prices on the lower end. Towards the end of the year 2022, the prices declined significantly with stockpiled inventories among the market participants and were recorded at USD 12560/MT CFR Los Angeles in North America.
Asia Pacific
APAC region, primarily in China, witnesses descending price trend for Pectin in the fourth quarter of 2022. The prices of Pectin during October inclined as the inquiries from the traders increased. Chinese manufacturing activity, one of the important components of the country's economy, has declined steadily since the start of November in the fourth quarter. As rising COVID-19 cases caused more supply disruptions within the domestic and international markets, the demand fell again after witnessing an upsurged trend in the previous month which in turn affected the market sentiments of Pectin on a weaker side. Following a similar trend, the price of Pectin recorded during the end of the fourth quarter was settled at USD 11950/MT FOB Shanghai in China.
Europe
In the European region, primarily Germany, the fourth quarter of 2022 showed an incremented trend throughout the final quarter of 2022. At the start of October, inquiries inclined again after witnessing a weak trend in the previous month. Supply chain disruption eased rapidly along with the shipping cost during this mid of fourth quarter, somewhat supporting the positive market sentiments during mid-q4, i.e., in November 2022. With this similar trend, the prices of Pectin visualized the same tendency as the downstream demand remained consistent, along with sufficient supplies with the market players to meet the overall orders.
For the Quarter Ending September 2022
North America
High Methoxyl (HM) Pectin prices in the North American region were inclined in the first half of the third quarter of 2022. Demand from the downstream pharmaceutical and food sector has increased in the region, keeping the prices on the higher side. Furthermore, with the surging inflation rate, some US customers have frontloaded orders to ensure they have goods on hand with lower costs. Moreover, towards the termination of q3, the prices for High Methoxyl (HM) Pectin dropped down owing to weaker purchasing momentum observed from the customer side. Also, stockpiling of stocks the suppliers feared caused them to reduce the prices to destock the inventories. With this, the prices demonstrated for High Methoxyl (HM) Pectin were assessed at USD 13580/MT CFR Los Angeles.
Asia Pacific
In the APAC region, the prices of High Methoxyl (HM) Pectin witnessed an upsurged trend backed by increased demand from the downstream Pharmaceutical and Food sector. Also, the price trajectory witnessed a sharp increment owing to an increase in upstream citrus fruit value. Furthermore, the ongoing geopolitical conflict between the Russia-Ukraine war halted production in various manufacturing units, impacting the price propensity of High Methoxyl (HM) Pectin in the domestic market. China's export growth for HM Pectin unexpectedly picked up speed in July and followed a similar tendency until mid of q3. With the ending of q3, the price dropped down and was settled at USD 10865/MT FOB Shanghai in China.
Europe
In Europe, High Methoxyl (HM) Pectin prices inclined during the third quarter of 2022. The market surged significantly in q3 owing to the geopolitical conflicts between Russia-Ukraine, during which the trade routes showed signs of congestion following a tense trade atmosphere. Further, the increased demand and weak supplies with the domestic retailers propelled them to raise their stocks to meet the demand side, which positively supported HM Pectin price trends in Europe. With this towards the termination of q3, the prices got settled at USD 12780 / MT FOB Hamburg.
