During the month of March 2025, glyoxal prices saw an upward trend in both Germany and US underpinned by differentially influenced regional supply-demand dynamics fuelled by trends in the construction industry. The recovery in downstream construction activity along with supply pressures are responsible for accelerated prices in the U.S. In contrast, the German market saw cost-driven increases, primarily due to rising feedstock prices, with only tentative signs of recovery in residential construction contributing to demand.

US glyoxal prices increased consistently as supply could not match robust demand from the downstream market of paints and coatings, which is closely related to the construction industry. According to NAHB, non-residential construction employment generated 22,300 jobs in March, a sign of a rise in infrastructure and commercial projects. This resulted in increased use of coatings based on glyoxal.

Even though producers enjoyed cost certainty because monoethylene glycol (MEG) feedstock prices remained stable, the market was plagued by ongoing logistical challenges. As a result of supply flow constraints brought about by delays in customs and shortages of vendor inventory, delivery lead times increased to six months. These problems made it difficult for the market to adapt to rising demand. 

Furthermore, the fear of future tariffs on major imports produced some uncertainty that could have discouraged advance stock restocking and manufacturing planning further in support of the upward price trajectory for glyoxal.

Similarly, Germany also saw a spike in the price of glyoxal, but the drivers were different. A dramatic spike in the cost of MEG feedstock exerted tremendous cost pressure on glyoxal manufacturers, who in turn transferred these elevated costs into the value chain, giving rise to high prices for final glyoxal consumers. Although easing supply chain shortages and moderately enhanced delivery schedules brought some operating relief, they were not enough to counter the cost inflation.

On the demand side, the moderate relaxation of order shortages in the residential building industry could signal a mild recovery in this sector, which could lead to increased demand for paint and coatings, and consequently, for glyoxal, in the future. However, the overall negative business climate in the sector suggests that this recovery is still fragile.

Furthermore, the euro appreciation against the dollar in March resulted in quoted prices for glyoxal seeming higher on a world basis, thus increasing the apparent price rise further.

In the future, both markets will likely continue to be sensitive to changes in building activity and to trade policy transitions. In the United States, contractors' focus on local material sourcing will possibly buffer some volatility related to trade, but tariffs might still contribute to input pricing and lead time variability. Germany's strengthening residential building approvals and relaxation of supply bottlenecks may gradually replenish construction spending, providing a more solid underpinning to glyoxal consumption in months ahead.