For the Quarter Ending June 2024
North America
In Q2 2024, Taurine prices in North America experienced a significant downward trend, influenced by a complex array of market dynamics. Throughout the quarter, Taurine prices were notably affected by weaker-than-anticipated demand, characterized by a substantial reduction in new orders and a shrinkage in the backlog of orders. This economic slowdown was exacerbated by the Federal Reserve's decision to maintain high interest rates, which continued to erode consumer purchasing power, thereby dampening overall demand. Additionally, inflation decelerated modestly, aided by a decrease in gasoline prices, which, in turn, lowered transportation and business costs, further compressing Taurine prices.
In the USA, the downward pricing trend was most pronounced, driven by a confluence of factors. The manufacturing sector's continued contraction, coupled with strategic decisions by importers to frontload imports in anticipation of the peak season, resulted in high supply levels that outstripped demand. Seasonal preparations for the Christmas period also led to bulk orders being shipped at lower rates, further contributing to the bearish market sentiment. Comparing the first and second half of the quarter reveals an even steeper price decline of -7%, underscoring the persistent downward pressure. The quarter concluded with Taurine prices settling at USD 2240/MT CFR Los Angeles, reflecting a negative pricing environment overall. This consistent decrease highlights a challenging quarter for the Taurine market, dominated by a bearish sentiment and substantial price reductions.
APAC
In Q2 2024, Taurine prices in the APAC region experienced a notable decline, driven by multifaceted economic factors and market dynamics. Key influences on the market included a significant slowdown in new orders both domestically and internationally, coupled with a reduction in operational costs due to lower fuel prices. This facilitated cost savings for businesses, which were subsequently passed on to consumers as reduced prices. Additionally, logistical challenges within the export sector, particularly exacerbated by crises in the Red Sea and geopolitical tensions, disrupted international trade, leading to an excess supply of Taurine in the domestic market. The depreciation of ethylene oxide prices, a crucial raw material, further contributed to the downward trajectory of Taurine prices.
China, having witnessed the most pronounced price changes, experienced a sharp decline in Taurine prices reflective of broader market trends. The seasonality of demand, coupled with ongoing economic uncertainties, exacerbated the price reductions. A significant factor was the slowdown in factory activity, marked by a reduction in new and export orders. The appreciation of the Chinese yuan against the USD rendered Taurine more expensive for international buyers, resulting in decreased foreign demand. Compounding these issues were persistent trade barriers and tariffs, which restricted access to key markets, further straining the supply-demand equilibrium.
The quarter concluded with Taurine prices settling at USD 1965/MT FOB Shanghai, reinforcing a consistent negative pricing sentiment throughout the period. Several plant shutdowns during this quarter, including those at key manufacturing hubs, further compounded the supply glut, exacerbating the price decline. Ultimately, the Q2 2024 pricing environment for Taurine in the APAC region, and particularly in China, remained largely negative, reflecting the compounded impact of reduced demand, abundant supply, and economic disruptions.
Europe
The Taurine market in Europe experienced a significant downturn in Q2 2024, influenced by several critical factors. This period saw a marked decline in demand from key sectors such as nutraceuticals and pharmaceuticals, despite improvements in supply chain conditions. Increased availability of Taurine, particularly from major Asian exporters, created competitive pricing pressures. Additionally, the easing of global trade disruptions and reduced freight costs contributed to downward price adjustments.
Economic factors, including a slight recovery in inflation and improved consumer confidence, provided some resistance to the downward trend but were insufficient to reverse it. In Germany, which was the epicentre of price volatility, the Taurine market underwent significant changes. Seasonal factors, such as reduced consumption during warmer months and ample inventory levels, further intensified the price decrease.
Overall, the pricing environment in Q2 2024 reflected a predominantly negative sentiment. This was driven by an oversupply of Taurine and stabilizing trade conditions, which overshadowed any minor demand recovery. The combination of these elements created a challenging market landscape, with downward pressure on prices prevailing throughout the quarter.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing dynamics of Taurine in the North America region, particularly in the USA, were influenced by a diverse array of factors that extended beyond typical market drivers. The overall trend for Taurine prices in the USA during this period exhibited volatility and fluctuations, featuring a mix of upward and downward movements. The market situation in the USA played a pivotal role in shaping these dynamics, with factors such as consumer sentiment and economic indicators impacting both demand and prices.
The quarter commenced with a decline in prices, primarily attributed to cautious consumer sentiment amid sluggish retail sales and rising inflation. This cautious approach translated into reduced consumer spending, resulting in a subsequent decrease in demand for Taurine. Additionally, uncertainties stemming from inflationary pressures prompted consumers to adopt a more conservative financial approach, further dampening demand. Another contributing factor to the price decline was the oversupply of Taurine in the market. Market participants accumulated ample inventories ahead of the spring festival in China, leading to an excess supply situation. This surplus, combined with reduced demand, exerted downward pressure on prices. However, prices experienced a slight increase in March, driven by an improvement in business sentiments fueled by a steady rise in new orders from end-users. This increase surpassed the available supply in the domestic market, consequently driving Taurine prices upwards.
Overall, the pricing environment for Taurine in Q1 2024 was characterized as unstable. The quarter concluded with a settlement price of USD 2465 per metric ton CFR Los Angeles for L-Taurine in the USA market, reflecting the fluctuating nature of the market during this period.
Asia Pacific
In the first quarter of 2024, the pricing dynamics of Taurine in the APAC region displayed a mixed pattern, influenced by various factors including demand from key sectors like nutraceuticals, healthcare, and pharmaceuticals, as well as disruptions in the supply chain. Notably, China experienced significant fluctuations in Taurine prices during this period. The initial decline in prices at the quarter's outset was closely linked to challenges within China's manufacturing sector, directly affected the supply and demand dynamics of Taurine. Furthermore, the Lunar New Year period, typically associated with reduced manufacturing activity and decreased demand, further influenced price trends in China. However, prices rebounded slightly towards the end of the quarter as the manufacturing sector showed signs of steady improvement, indicating a notable recovery in industrial activities post the Lunar New Year holiday. This resurgence in manufacturing was marked by a significant expansion in both supply and demand metrics, supported by a resurgence in international demand, thereby strengthening the positive momentum in Taurine prices. In conclusion, the final price for L-Taurine FOB Shanghai in China in Q1 2024 was USD 2260 per metric ton, reflecting the intricate dynamics of the market and the influence of various factors on pricing trends.
Europe
In the first quarter of 2024, the pricing landscape for Taurine in Europe witnessed a blend of factors influencing market prices, resulting in a mixed trend with both positive and negative price fluctuations. Notably, fluctuating demand from various industries played a significant role in shaping market prices. At the outset of the quarter, prices declined in response to subdued consumer sentiments and economic concerns, particularly impacting demand from the nutraceutical and healthcare sectors. This decrease in demand, coupled with the central bank's decision to maintain existing interest rates, added complexity to the market environment by further straining consumers' purchasing power. In response to these challenges, market suppliers and traders worked to address excess inventories amidst sluggish domestic demand. However, prices rebounded towards the quarter's end due to improved business sentiments, which spurred domestic demand. Additionally, declining inflation rates in Germany bolstered consumer confidence by alleviating financial burdens, enhancing purchasing power, and contributing to the upward trajectory of Taurine prices. Overall, the pricing environment for Taurine in Q1 2024 was characterized by instability, influenced by fluctuating demand, supply chain disruptions, and inflationary pressures.
For the Quarter Ending December 2023
North America
The fourth quarter of 2023 was marked by significant developments in the Taurine market in North America, particularly in the United States. Initially, there was a notable increase in prices, with Taurine prices in the US experiencing a surge of 16.51% from October to November. This increase can be attributed to a surge in consumer spending, signs of easing inflation, and more affordable gas prices, which sustained the overall surge in demand. However, prices declined in December, attributed to reduced demand from downstream industries and an ample supply in the market.
In terms of the US market specifically, the country experienced heightened consumer confidence and sustained high demand. This was driven by a decrease in inflationary pressures, which increased consumer spending. Additionally, the depreciation of the US dollar against foreign currencies, particularly the Chinese yuan, led to more expensive imports and restricted supply in the domestic market. These factors, combined with increased demand during the holiday season, contributed to the elevated prices of Taurine in the US. Although, prices declined towards the end of the quarter, attributed to rebound of inflationary pressure, which prompted consumers to exercise caution in their spending, affecting the overall demand for Taurine.
Overall, the L-Taurine market in the North America region in the Q4 was influenced by factors such as inflation, interest rates, and consumer behaviour. The price of L-Taurine CFR Los Angeles in the USA for the fourth quarter of 2023 is USD 2505/MT.
APAC
In the fourth quarter of 2023, the APAC region encountered a nuanced market scenario for Taurine. Initially, there was a notable surge in demand driven by increased orders from both domestic and international markets. This uptick was propelled by positive market sentiments and enhanced manufacturing activities, resulting in constrained supply and subsequent price escalation. China, a significant player in the Taurine market, experienced a substantial price increase attributed to heightened consumer spending during the festive season and increased production costs stemming from rising crude oil prices. Moreover, positive shifts were observed in household consumption, industrial production, and market expectations. However, towards the end of the quarter, prices experienced a decline, prompted by a reduction in new order inquiries both domestically and internationally. The diminished domestic demand in China can be linked to deflationary pressures, leading consumers to defer purchases in anticipation of further price declines. This behavior impacted overall consumption and contributed to the price downturn observed in the concluding period of the quarter. The price of L-Taurine FOB Shanghai in China for the current quarter is USD 2375/MT.
Europe
In the concluding quarter of 2023, the European Taurine market underwent a series of factors that influenced its pricing dynamics. October and November witnessed an upward trajectory in Taurine prices, driven by heightened demand from the nutraceutical and healthcare sectors, increased consumer spending, and a reduction in market inventories. A positive shift in business sentiment in Germany signaled an alleviation of factors hindering economic growth, such as high inflation, positively impacting consumer sentiments and contributing to the price surge. However, as December unfolded, Taurine prices experienced a downturn. This reversal was attributed to consumer apprehension and reduced purchasing power resulting from the resurgence of inflationary pressure. Consequently, a surplus of supply emerged in the market, exerting downward pressure on prices. Furthermore, business sentiments in Europe, particularly in Germany, continued to decline, leading to an overall reduction in demand for Taurine. The persistent decline in new orders and factory productivity contributed to the overall weakness in demand. Lastly, the European Central Bank's efforts to curb inflation through interest rate hikes further impacted the market, as higher interest rates acted as a deterrent to market demand. The combined effect of these factors underscored the dynamic nature of the European Taurine market during the final quarter of 2023.
For the Quarter Ending September 2023
North America
The prices of Taurine experienced a varied trajectory in the third quarter, with a decline of 11.24% in July and a further decrease of 10.86% in August. However, these fluctuations were followed by a notable increase of 6.09% in September. Business activity in the United States fell in the third quarter due to lower demand from both domestic and overseas markets. In the United States, inflation rose to 3.7% in August for the first time since June 2022, as a substantial increase in energy costs drove prices higher at the end of the summer, weighing even more on consumer confidence. Inflationary pressures imply that the US economy is drifting away from the Federal Reserve's 2% target rate, leading policymakers to consider raising interest rates later this year. The Federal Reserve raised its key policy interest rate by 0.25 percent in July, the eleventh time in 17 months, to combat persistent inflation in the US economy, which has resulted in lower market demand. The Consumer Price Index increased 3.7% in September, slightly more than the 3.6% predicted. Energy prices rose 1.5%, with gasoline prices up 2.1% and fuel oil prices rising 8.5%. Furthermore, Chinese shipments were stalled, causing Taurine prices to remain high. Prices concluded at USD 2090/MT CFR Los Angeles at the end of Q3.
Asia Pacific
Taurine prices declined by 11.21% and 5.56% in July and August respectively but increased in September by 6.15%. The Chinese economy has encountered new challenges and limits that are hindering economic expansion. The official manufacturing PMI (Purchasing Managers' Index) was 49.3 in July, according to the National Bureau of Statistics (NBS). This score, however, stayed below 50, indicating contraction rather than increase. Lower overseas orders and sales have stifled business and industrial activity. Inflation and rising interest rates in the US, Europe, and important export markets continue to weigh on Chinese demand, with the new export order sub-index decreasing for the sixth month in a row in August. Furthermore, amid economic concerns, China's central bank lowers its primary interest rate, which encourages market spending, resulting in surging Taurine prices in China. In September, China's manufacturing purchasing managers' index (PMI) quietly rose back into the expanding range, indicating the restoration of industrial activity and expressing an optimistic economic comeback within the country. With the termination of Q3, the prices settled at USD 1985/MT FOB Shanghai.
Europe
The prices of Taurine experienced a varied trajectory in the third quarter. Priced declined July and August but increased in the month of September. In July, Germany's purchasing managers' index (PMI) fell to 41 compared to previous month, reflecting a sustained decline in new orders from both domestic and foreign markets despite adequate stocks among market participants. In addition, consumer confidence remained low in August as a result of ongoing rate hikes, rising inflation, the oil crisis, and geopolitical concerns. The persistently high rate of inflation, fueled by high energy and oil prices, weakened consumer purchasing power and aided the drop in Taurine prices. In September, German inflation achieved its most favorable level since the start of Russia's all-out invasion of Ukraine, signaling a crucial turning point in reducing the heavy inflationary pressures that have beset Europe's economic powerhouse. According to the most current data from the federal statistics office, Germany's inflation rate has just experienced a dramatic drop, gracefully leveling at a measly 4.5%. This significant decrease, the lowest level since the outbreak of the Ukraine crisis, provides customers with a sense of relief, leading to a surge in Taurine prices in September.
For the Quarter Ending June 2023
North America
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.
Asia Pacific
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.
Europe
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
North America
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%.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2022
North America
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.
Asia Pacific
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.
Europe
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.
