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.
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.
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.
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.
