For the Quarter Ending June 2023
North America
In the second quarter of 2023, Tetrasodium EDTA prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. The price was valued at the end of Q2 2023, representing an average quarterly decline of 7.33%. The US Tetrasodium EDTA market experienced a slowdown due to decreased demand from downstream industries. This led to excess inventory, forcing suppliers to lower prices. The ongoing economic instability in the US and rising global inflation have also contributed to the decline in demand. Market trading fundamentals were impacted by weak demand and high inventories. Retail sales fell due to high inflation. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers. In conclusion, the US Tetrasodium EDTA market is facing several challenges, including declining demand, excess inventory, and falling prices.
Asia
The market price of Tetrasodium EDTA declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 6.54%. China's import and export activities were mixed. Major market players reported that buyers were hesitant to place large orders due to concerns about further price declines. Freight transport volume also increased in June, with the index rising to 51.2 points. This was driven by an increase in both domestic and international trade. Warehouse occupancy rates remained high in June, with the index standing at 52.3 points. This was due to strong demand from the e-commerce and manufacturing sectors. Bearish demand and lowering offtakes from end-user industries kept the market situation feeble. Also, the currency fluctuation further influenced the market trajectory. Due to large inventories of Tetrasodium EDTA, suppliers have had to reduce prices to reduce existing inventories. Some market participants reduce inventories and improve cash flow. The demand for Tetrasodium EDTA from the agricultural fertilizer and food industries decreased due to uncertain economic conditions and rising inflation. This led to a halt in trade, and inventory levels increased as producers increased production. Feedstock suppliers offered at a lower price in the spot market, which further reduced Tetrasodium EDTA prices.
Europe
In the second quarter of 2023, the demand for Tetrasodium EDTA decreased, leading to a decline in market prices. Tetrasodium EDTA prices fell by an average quarterly declination of 6.93%. The availability of domestic supplies and a decrease in demand in the local as well as in the international market impacted commodity prices. Germany’s Regional Tetrasodium EDTA market continued to be hostile throughout the second quarter. The manufacturing units have been forced to sell Tetrasodium EDTA at lower prices, but buyers are still waiting to see if prices will drop further. Import offers have increased this week, but they remain substantially below domestic prices. European buyers of Tetrasodium EDTA are delaying restocking due to a lack of end-user demand, and there are downbeat price expectations. Also, considerably low consumer demand in downstream sectors and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Tetrasodium EDTA import prices. This has led to an increase in the supply of Tetrasodium EDTA, which has put downward pressure on prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Tetrasodium EDTA market witnessed a depreciated market situation in the North American region. Prices were witnessed to be on the lower end because of weak domestic demand, according to market fundamentals. The fact that domestic retailers had ample inventories among themselves also influenced the market scenario negatively. At the end of the first quarter, Tetrasodium EDTA values were accessed at USD 3520/MT with an average quarterly declination of 4.42%. Additionally, the consolidated prices trajectory for feedstock Caustic soda further supported the negative trajectory with low production costs. In the month of March, the freight costs were reduced many folds, further adding to the already feeble market situation.
APAC
A reduction in consumer demand from the downstream food, pharmaceutical, and nutraceutical industries causes Tetrasodium EDTA market prices to decline dramatically in the first quarter of 2023. Also, the prices for feedstock Caustic soda decrease throughout the first quarter 00f 2023 keeping the downstream Tetrasodium EDTA market feeble. During the Spring Festival, the downstream participation declined, the stock plan had ended for a while, and there was no significant desire to purchase, which further supported the rolling down trajectory for Tetrasodium EDTA. The prices were accessed at USD 2990/MT FOB Qingdao at the termination of Q1 2023, with an average quarterly declination of 3.97%, respectively.
Europe
In the first quarter of 2023, the European region's market for Tetrasodium EDTA witnessed a dip in prices throughout the quarter. According to market fundamentals, prices were projected to be on the lower end due to limited domestic demand. The abundance of inventory held by domestic retailers among themselves also had a negative impact on the market situation. Tetrasodium EDTA values were found at USD 3350/MT at the end of the first quarter, with an average quarterly decline of 4.50%. The consolidated pricing trajectory for the feedstock Caustic Soda and the low production costs further reinforced the negative trajectory. The already precarious market conditions were made worse in March by the multiple-fold reduction in freight costs.
For the Quarter Ending December 2022
North America
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.
Asia Pacific
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.
Europe
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 America
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.
APAC
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.
Europe
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
North America
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.
APAC
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.
Europe
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.
