After Mixed Market Sentiments, Glucosamine Prices Rise in the US

In the US domestic market, the prices for Glucosamine progressively grew as the second quarter of the year got underway, following the first quarter of 2023 marked by conflicting market sentiments. According to the ChemAnalyst statistics, the FOB (Freight on Board) prices of Glucosamine increased by 0.7% from the first quarter of the year in April alone. The improvement in trade relations between Asia and the US following the lifting of the zero-covid restriction encouraged the import of APIs and Nutraceuticals, including Glucosamine. Market participants are stocking up their shelves to meet the downstream demand for Glucosamine across the country, and this has significantly impacted the costs of Glucosamine in the Nutraceutical market in the US. However, the consumer demand for Glucosamine significantly grew in April, as a result of which the local producers and suppliers increased their bids, leading to a modest increase in pricing. 

As both purchase and ex-location prices in the US have reached record highs, inflation worries have intensified. The stats indicate that US business activity in April exceeded expectations, with the composite Purchasing Managers Index (PMI) increasing to a level that is virtually yearly on record. Because suppliers and producers of Glucosamine have been focusing on lowering inventory levels as a result of overstock in the preceding months, shipping demand for the product has been bullish up until this point propelling prices to increase. However, the nation's import market activity slowed in April, which should be worrying for those hoping for a robust recovery from the Covid-19 outbreak. However, as container lines attempt to make up for a decline in earnings before the so-called US "importing season" in the autumn, the price of marine freight from Asia to the US is also rising.

The US dollar is strong and volatile right now, which offers buyers and wholesalers of Glucosamine both opportunity and turbulence. The US Federal Reserve has aggressively sought to control inflation over the past year by increasing interest rates eight times, reaching their current target range of between 4.5% and 4.75%. According to a sector expert, "We expect the dollar to continue to nudge higher in the months to come as Fed policy continues and foreign investors favor higher-yielding investments." Given that the US imports the majority of its nutraceuticals and APIs, the price of Glucosamine in the US and emerging markets is likely to drop in the near future, which would hurt domestic enterprises in the pharmaceutical and nutraceutical sectors of the US economy.