Bearish Market Situation Prevails for Glyoxylic Acid in the West Post Festivities

Global Glyoxylic Acid market unfolded bearish sentiments throughout the first half of January 2024. This dip is primarily attributed to declining price of Glyoxylic Acid from the downstream cosmetics and haircare industry coupled with surplus availability of the material in the market amidst trade uncertainties. Further, declining price of essential feedstock Nitric Acid prompted towards reduced production rates thus exerting downward cost pressure on Glyoxylic Acid prices.

In the North American region, the Glyoxylic Acid market prevail negative trend throughout the first half of January 2024. Declining price of essential feedstock Nitric Acid prompted towards lower production cost thus exerting downward cost pressure on Glyoxylic Acid prices. Extensive drought conditions at the Panama Canal, a critical global trade route originating in the USA, have contributed to this scenario. Further, major shipping companies have opted for alternative routes to trade instead of the Suez Canal due to concerns about potential rebel attacks. The limitations at the Panama Canal have compelled certain shippers to reroute exports, including Glyoxylic Acid, through the Suez Canal to access Asian markets. Should limitations persist at the Suez Canal, the export of Glyoxylic Acid from the US could encounter growing challenges, potentially resulting in an oversaturation of the domestic market and subsequent price decreases. The accumulation of Glyoxylic Acid inventories within the country has been exacerbated by delayed shipments to the international market. In terms of demand perspective, procurement orders from the downstream cosmetics and haircare industry remained refrained as the peak festive season has passed.

Similarly, in the European region, the prices of Glyoxylic Acid plunged during the first half of January 2024. Restricted demand of Glyoxylic Acid post-Christmas and New Year holiday remained the key driving factor behind the current decline in prices. Further, attacks on ships in the Red Sea continue to push ocean freight rates higher, triggering warnings of inflation and delayed goods. In an attempt to mitigate the risk of strikes by Iran-backed Houthi militants in Yemen, carriers have redirected trade away from the vital Middle East trade route over the past few weeks. This route, along with the Suez Canal, serves as a critical connection between the Mediterranean Sea and the Indian Ocean. Consequently, leading to a surge in inventories on the port. The interplay of these factors prompted towards narrowed disparity between demand and supply.

As anticipated by ChemAnalyst, the price of Glyoxylic Acid is anticipated to follow downward trend in the wake of diminished demand from the downstream industry.