For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the market prices of Polysorbate declined in the North American market despite the fluctuating feedstock (sorbitol) prices. The industrial output and new order strength declined in the domestic market despite the eased inflationary pressure in the regional market. The demand for the product among pharmaceutical and personal care sectors has declined as the availability of other alternatives created a competitive atmosphere among the major manufacturing units. The Employment Index resumed contracting, while the Production Index shrank but still managed to maintain a small growth rate. Towards the quarter end, the Christmas holidays and the occurrence of the snowstorm in some parts of the USA hampered the supply chain, temporarily halting the production rate and overall market prices.
Asia-Pacific
In Q4 of 2022, the market prices of Polysorbate followed the downward momentum on the back of declining demand for the product in the Asian market. However, the feedstock (sorbitol) prices moved in the opposite direction, and suppliers had sufficient stockpiles to cater to the domestic demand. As the Asian countries experienced weather changes, the demand for frozen food and confectionary was slow. The pharmaceutical industry also demonstrated static demand, which led to fewer inquiries from the market about the product in the nation for the suppliers. Despite the product's higher operational rate and appropriate inventory levels, domestic prices for Polysorbate decreased. Throughout the month, there was continued pressure on China's feedstock supply. The market's accessibility of more effective substitutes ensured that there was little demand for medical services.
Europe
In the fourth quarter of 2022, the price trend for Polysorbate declined as the demand from the pharmaceutical and food sector was low. The end users displayed slower interest in buying the product, and the inventories were just enough to fulfill the demand. On the other hand, the market prices of feedstock (sorbitol) oscillated throughout the quarter. With more competitiveness and easy availability of other alternatives in the market, the demand strength weakened. The supply chain eased throughout the quarter, and new orders declined as the buyers waited for the Christmas holidays to get over and the market to resume operation.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the prices of Polysorbate showcased mixed sentiments because of fluctuating feedstock sorbitol prices in the US market. The country's energy prices and inflation rate remained high throughout the quarter. The demand from downstream, pharmaceutical, and food were low. Furthermore, supply shortages occurred in the market as major supplying countries halted upstream production. Towards the quarter's end, the final prices of Polysorbate were assessed at USD 4900 per MT, FOB Texas (USA).
Asia-Pacific
In the Asia-Pacific region, the price dynamics of Polysorbate followed the uptrend during the third quarter of 2022. Indian manufacturers faced feed supply shortages as China, the major feed producer, restricted the transportation of the product. The firm demand for the product in surfactants and pharmaceutical sector in the Indian market governed the market sentiments of Polysorbate. Furthermore, the Reserve Bank of India increased the interest rate in the country. Energy prices and currency depreciation led to high production costs and increased import prices. Towards the end of Q3, the prices of Polysorbate were USD 2820 per MT, CFR Kandla (India).
Europe
The prices of Polysorbate in the third quarter of 2022 followed the upward trajectory in the European market because of increased feedstock prices. The European regions are facing commodity inflation and high natural gas prices. Towards the end of the third quarter, the supply of natural gas from Russia was disrupted as the gas pipeline was damaged. As the market experienced commodity inflation, feed prices remained high, resulting in high production costs. The market dynamics of Polysorbate in Europe are governed by the stagnant demand for pharmaceuticals and cosmetics. Towards the quarter's end, the prices were assessed at USD 2800 per MT, CFR Vladivostok (Russia).
In the second quarter of 2022, the prices of Polysorbate followed the uptrend in the North American region on the back of increasing feedstock sorbitol and oleic acid prices. With the feedstock prices and energy cost hikes, Polysorbate's market dynamics remained on the upper edge throughout the quarter. Temperature is continuously rising in the North American region, increasing energy demand in residential and industrial sectors. The pharmaceutical and cosmetics sector remained active in the second quarter governing Polysorbate prices. Furthermore, supply shortages occurred in the market as major supplying countries halted upstream production, leading to a price hike in the North American region.
In the Asia-Pacific region, mixed sentiments in the prices of Polysorbate were observed during the second quarter of 2022. China is the primary feedstock sorbitol and oleic acid supplier in the international market. The country went under strict lockdown due to Covid curbs leading to a temporary halt in the operational rate of Polysorbate in the Asia-Pacific market. In the Indian market, the prices remained brisk as the demand from pharmaceutical sectors remained active, leading to a rise in prices. Furthermore, the supply shortage of feed with major Indian manufacturers significantly raised the prices in the regional market. Moreover, the region has suffered from extreme temperatures leading to high energy costs. Increased feedstock and energy prices governed the market sentiments of Polysorbate in the regional market.
The prices of Polysorbate in the second quarter of 2022 witnessed a hike in the European market on the back of brisked prices of feedstock sorbitol and oleic acid in the regional market. As commodity inflation occurred in the market, feed prices remained elevated, leading to high production costs. The gap between supply and demand remained huge as rough transportation of feed at the correct time occurred in the regional market. Energy costs also remained burning, leading to high production costs in the regional market. The demand for pharmaceuticals and cosmetics remained stagnant, governing the market dynamics of Polysorbate in the European market.
