At the beginning of the second quarter, particularly April, Glycine witnessed a notable decline in its prices within the global market, marking a significant shift in market dynamics supported by various factors.

Starting with exporting nations, such as China, major producing nations witnessed a downward trend in prices due to sufficient inventories coupled with muted demand and inquiries from overseas markets. Additionally, upstream raw material costs decreased compared to the previous month, leading to lower profits for Glycine producers and caution in production. Despite efforts to adjust export prices for Glycine, limited acceptance of offers persisted due to weakened downstream and overseas markets, necessitating producers to cut prices to initiate exports. Furthermore, as the Spring season approaches, enterprises mainly consume inventory, reducing output in anticipation of extreme heat waves. This prompts manufacturing units to expect plant shutdowns or lower operational rates, prompting increased production and bulk procurements to mitigate potential supply shortages from previous months, resulting in higher material availability at warehouses. However, this creates a supply-demand imbalance as expected inquiries from importing nations did not materialize considering Glycine.

Moreover, on the importing nations primarily the United States, the market continued to remain weak in general, although spot deliveries remained stable within the region with buyers actively procuring solely based on their necessities. Sportingly, export prices concerning Glycine from major producing nations particularly continued to drop, which influenced the market sentiments within the importing nations as well. Several factors contribute to this decline, including a shift in consumer purchasing towards other amino acids, Higher surplus supply for Glycine surpassing the current demand levels both within importing and exporting nations, and lastly, fluctuations in production costs.  With continuous reduced consumer spending, the economic downturn persists as consumers face persistent economic hardship. Options on Secured Overnight Financing Rate (SOFR) futures indicate a higher probability that the Federal Reserve could hike interest rates by a quarter percentage point this year and next, as U.S. inflation and the labor market remain resilient. Higher interest rates make borrowing more expensive, slowing economic activity and reducing demand for goods and services. Consequently, consumers continue to cut back on spending on various commodities.

Additionally, the appreciation of the US Dollar significantly impacts the pricing dynamics of Glycine, exacerbating the existing downward trend. This currency appreciation increases the purchasing power of buyers holding US Dollars, putting downward pressure on Glycine prices and other commodities traded in international markets. However, demand from downstream preservatives remains muted, resulting in weakened imports. Despite the current price depreciation, Glycine remains a crucial component in numerous sectors due to its indispensable properties and versatile applications. As market players navigate these fluctuations, strategic planning and adaptation to evolving market conditions will be essential to maintain competitiveness and sustain growth in the Glycine industry.