For the Quarter Ending December 2022
The price of Tetrasodium EDTA CFR New York decreased from $4630/mt to $4035/mt from October to December 2022 as a result of the prolonged market volatility in the US. Due to China's Golden Week, imports of Tetrasodium EDTA from there were restricted during the first week of October. The ample inventories held by domestic suppliers allowed them to fulfill the overall demand, and offtakes in the end-user industries remained consistent throughout the quarter. Supply chains remained risky for the majority of the quarter due to China's Covid lockdowns, Russia's instability in Ukraine, and bad weather. However, there was a gradual improvement in the second half of the year as the economy began to grow, and the ports had a significant decrease in ship backlogs after a protracted port backlog.
Tetrasodium EDTA prices in China showed a decreasing price trend during the fourth quarter of 2022 in the Asia Pacific region, with FOB Qingdao values falling from $3660/mt to $3880/mt from October to December. The orders for China's sector producing Tetrasodium EDTA declined steadily during the first week of October as a result of the shutdown of industrial facilities for the Golden Week. It was challenging for the market to catch up to the small rise seen in some downstream industries during the first part of Q4 because Chinese traders had to deal with a range of contradicting signals after a one-week break. Large inventories allowed domestic producers and suppliers to meet all overall demand for the whole quarter. In reaction to criticism and severe turmoil in the country, the administration revised its zero-covid policies, which once again made the country vulnerable.
In Europe, Tetrasodium EDTA prices showed a downward tendency in the fourth quarter of 2022, with CFR Hamburg values dropping from $4280/mt to $3850/mt from October to December. Along with the rising energy and raw material prices, demand in Germany remained on the weaker side during the quarter, making it challenging for the pharmaceutical and nutraceutical businesses to plan ahead and stay afloat. Germany's industrial production only slightly grew in October despite rising energy prices and supply-chain worries. Nevertheless, the circumstances in Russia and Ukraine as well as COVID-19 cases, all continued to have a detrimental effect on the general market scenario.
For the Quarter Ending September 2022
North American consumer demand for Tetrasodium EDTA continued to decline in the third quarter of 2022, with CFR New York prices dropping from $5200/mt to $4820/mt between July and September. Due to China's "zero-covid tolerance" policy, import activities significantly constrained the supply of certain food chemicals, including Tetrasodium EDTA, to the United States. Many Chinese production facilities had to shut down in the second half of Q3 as a result of the heat wave and power deficit, and other businesses that produced food chemicals also went into maintenance, which had a negative effect on US trade. Many firms and industries blamed the nation's decreased demand on a range of problems, including inflation, supply constraints, and high-interest rates.
Tetrasodium EDTA market sentiments in the Asia Pacific region were mixed in the third quarter of 2022, with FOB Shanghai discussions rising until the midpoint of the quarter, or $3920/MT, and then declining with values assessed at $3800/MT in September. Several factors that have influenced this pricing trend include fluctuating feed prices, muted consumer spending, and negative end-user industry demand. Due to the weak downstream demand during the first half, big suppliers only made orders for immediate usage. When the markets reopened in the latter week of July following the shutdown, numerous manufacturing facilities, however, were undergoing maintenance, which had an effect on the Tetrasodium EDTA supply for both domestic and foreign providers.
The CFR Hamburg discussions for Tetrasodium EDTA in Germany fell from $4790/MT to $4450/MT between July and September, indicating a decreasing trend for the third quarter of 2022. Additionally, there was a lackluster demand from the end-user sector for food and beverages throughout this quarter. This quarter's port congestion and ongoing transportation delays caused logistical problems that made the economic situation in Europe worse. Along with the upheaval in Russia and Ukraine, the persistent port restrictions in China have deteriorated the business environment in Europe.
For the Quarter Ending June 2022
The second quarter of 2022 saw an increase in the price of Tetrasodium EDTA in North America owing to the surged feedstock costs. Due to supply problems, the market value of Formaldehyde as a raw material increased throughout the quarter, which boosted the price of Tetrasodium EDTA and raised upstream production costs. The price of Tetrasodium EDTA has risen because of growing demand from several downstream industries, including cosmetics, personal care, and dye. Due to rising energy costs, increased freight costs, and backed-up ports brought on by the tensions surrounding the Russia-Ukraine war, Tetrasodium EDTA's price surged in the domestic market.
In the second quarter of 2022, the market sentiments for Tetrasodium EDTA showed a trend toward shifting prices in the Asia-Pacific area, which was supported by volatility in feedstock prices. Tetrasodium EDTA prices started to fall in April before steadily increasing until June. The cost of producing Tetrasodium EDTA increased in May and June along with the value of the feedstock Formaldehyde, which led to an increase in Tetrasodium EDTA prices in the domestic market. Additionally, after April, the downstream demand for cosmetics, personal care, and dye increased, further boosting the price of Tetrasodium EDTA. Tetrasodium EDTA's price has risen because of both upstream cost increases and downstream offtake.
In contrast to North America, prices for Tetrasodium EDTA steadily dropped during Europe's second quarter of 2022. The major causes of this decline were weak end-user demand from the cosmetics, personal care, and dye sectors. Due to lower-than-expected consumer expenditure, the market price of feedstock Formaldehyde fell, which eventually led to the plunge in Tetrasodium EDTA value. The prices of Tetrasodium EDTA in the European market were also absurdly low due to the abundance of excess stock in the stores and the steady supply rate. The primary causes of the domestic market's declining price value of Tetrasodium EDTA were weak offtake and continuous supply flow.