For the Quarter Ending June 2023
The prices of Taurine in the US witnessed a mixed trend in the second quarter. A slight increase of 0.71 percent was noticed in May from the previous month due to an increase in end-user demand accompanied by inventory replenishment activities with fresh stock which kept the market on the north side. The manufacturing PMI (Purchasing managers' Index) settled at 48.4 in May, reflecting a slowdown in the US manufacturing sector. This indicates that supply from manufacturers and suppliers has been restricted due to the reduction in business activity. But the demand remained strong from consumers, resulting rise in Taurine prices in May. In contrast, the prices decreased by 11.70 percent in June from May due to due to exceptionally low offtakes in the end-user industries. Domestic suppliers have an abundance of Taurine in warehouses, which results in continually lowering costs in the home market. Also, higher interest rates by Federal Reserve decreased the Taurine demand in the market, further supporting the downward trend of prices.
The taurine prices in China demonstrated a mixed trend in the second quarter. A slight increase of 0.51 percent was noticed in the prices of Taurine in May, contrasted with the levels seen in April because of consistent demand and ongoing operational activity on the domestic market. China's PMI (Purchasing Managers' Index) stood at 48.8 in May from 49.2 in April, indicating the slowdown of factory activity, resulting in fewer inventories among market participants to fulfill the strong demand in the market, pushing the prices upward. In contrast, the prices of Taurine decreased in June by 12.82% from May because of a decline in follow-up for new orders and purchasing activity from consumers. Apart from that, China's export fell by 12.4 percent in June, leading to increased availability of Taurine in the Chinese market that supported the downward trend of Taurine prices. Additionally, from the perspective of upstream and downstream industrial chains, the upstream sulfuric acid market has recently declined slightly due to insufficient cost support, which further contributed to decreased prices of Taurine.
In Germany, the taurine market situation remained mixed in the second quarter. Prices rose slightly in May compared to April, then fell in June. The prices increased in May because of limited inventories among traders and suppliers coupled with increased demand from end-user industries. Germany's manufacturing Purchasing Managers Index (PMI) fell to 43.2 in May from 44.5 in April, reflecting lower business activity, fewer inventories among market traders and suppliers, and delays in shipments to meet demand, which led to higher prices for Taurine. In June, the German economy was hit by rising inflation and an interest rate hike by the European Central Bank, leading to increased food and energy prices. This has increased the cost of living and reduced consumer purchasing activity, supporting the downward trend of taurine prices. In addition, the appreciation of the Euro against the US Dollar in June made imports cheaper and also increased the supply of Taurine in the German market. This further put additional downward pressure on taurine prices.
For the Quarter Ending March 2023
Throughout the first quarter of 2023, Taurine prices in the North American region showed a declining market position. Additionally, recent prices for the raw materials sulfuric acid and ethylene oxide dropped significantly, supporting the downward trend. Additionally, the terminal operating rate decreased, and the demand for Taurine decreased. The merchants were forced to lower their prices to destock and clear the stock as a result of the accumulation of stocks brought on by the end-user sector's decreased demand. Furthermore, the market's deteriorating conditions have only been made worse by the fact that freight and transportation costs have decreased dramatically. At the termination of Q1 2023, the prices were accessed at USD 2520/MT Los Angeles, with an average quarterly declination of 5.10%.
The market prices for Taurine relinquish significantly in the first quarter of 2023 as a result of a decline in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries. The price of Taurine was weak and consolidated, and the downstream market demand was general. The prices were accessed at USD 2780/MT FOB-Shanghai at the termination of Q1 2023, with an average quarterly declination of 7.38%. With the commencement of Q1, the prices were recorded to roll down considerably with the depreciation of feedstock prices. Also, in terms of raw material Ethylene oxide and Sulfuric acid, recent prices were consolidated, supporting the depreciating trajectory. Also, as the market was facing the Spring Festival holiday, the terminal operating rate moved down, and the demand for Taurine weakened.
Prices for Taurine in the European region indicated a deteriorating market position throughout the first quarter of 2023. In addition, recent price decreases for the raw ingredients ethylene oxide and sulfuric acid helped to reinforce the downward trend. Lower demand in the domestic markets contributed to the unfavorable market situation. The accumulation of stocks brought on by the decline in demand from the end-user sector caused the merchants to drop their prices in order to destock and clear the stock. The fact that freight and transport costs have dropped significantly has only served to exacerbate the market's poor conditions.
North American region, primarily the United States market, the prices of Taurine plummeted during the final Quarter of 2022. With the start of the fourth quarter, the prices decreased considerably. The prices began to progressively drop from the start of the fourth quarter because fewer inquiries kept the stocks at their highest levels later in December. Also, with ease in inflation and other logistics, the prices decreased throughout Q4 2022. Additionally, fewer inquiries kept the stocks at their highest levels later in Q4 2022. Toward the end of Q4 2022, the price of Taurine was recorded at USD 3510/MT.
The prices of Taurine in the Asia Pacific region, majorly in China, demonstrated decelerating market situation throughout the fourth quarter of 2022. From October, the prices of Taurine declined considerably. Following November, the official manufacturing purchasing managers index (PMI) fell to 48.0 in November, slipping well below last month's reading of 49.2 along with reducing inquiries kept the prices of Taurine on the lower side. Also, lowering end-user sector demand and enough inventories among the market players further supported the market trajectory in the APAC region. Ease in strict zero covid policies also kept the market situation feeble towards the end of Q4 2022. Toward the end of Q4 2022, the price of Taurine was recorded at USD 2950/MT.
Prices for Taurine in the European region showed a see-saw tendency in the fourth quarter of 2022. In the first two months of Q4, the demand for Taurine in the downstream pharmaceutical industry was seen to be steady. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which forced an increase in pricing. High freight costs were another factor in Taurine's upward trend. Due to the impending holiday season, European retailers have decided to refill their stocks in large quantities. However, prices declined due to existing stocks and declining end-user sector demand in December.