Global Glyoxal Market Faces Bearish Price Trend Amidst Sluggish Demand

In the first half of June 2024, the price of Glyoxal in the US market experienced a bearish trend due to decreased demand from the construction sector. U.S. manufacturing activity slowed for a second consecutive month in May 2024, marked by the most significant drop in new goods orders in nearly two years and unexpected declines in construction project spending from the previous month. These indicators reflect a gradual economic slowdown. Additionally, high interest rates, maintained by the Federal Reserve to combat inflation, dampened spending on manufactured products and capital projects. Consumer spending on goods fell in April as households conserved their diminishing savings. However, the Glyoxal market in the US saw a significant price increase in May 2024, driven by a marginal rise in construction spending, which boosted demand. Rising global freight rates further contributed to the bullish trend, though the domestic supply of Glyoxal remained steady, without any reported shortages. US manufacturing activity showed mixed results during this period.

Similarly, the European market for Glyoxal faced a bearish situation in early June 2024 due to limited demand for Glyoxal from the construction sector. Inflation raised raw material and labor costs, making construction projects more expensive and less attractive, leading to a slowdown in new projects and reduced demand for Glyoxal. However, in May 2024, Glyoxal prices in Europe rose due to increased demand from the downstream construction sector and elevated global freight rates. Despite these pressures, the Glyoxal supply chain remained stable. According to Eurostat, seasonally adjusted construction production in April 2024 showed mixed results: a 0.2% decrease in the euro area but a 0.2% increase in the EU compared to March 2024, following declines in March.

In the Asian market, particularly in China, the price of Glyoxal continued to follow a bearish trend last month as demand from the downstream construction sector remained low, reflecting broader challenges in the real estate sector. According to the National Bureau of Statistics (NBS), total investment in real estate from January to May 2024 reached 4.06 trillion yuan ($560 billion), marking a 10.1% decline from the previous year. Despite an increase in investments in May to 970.4 billion yuan, 9.7% higher than April, this figure was still 4.7% lower year-on-year. Real estate sales by area in the first five months of the year fell by 20.3% year-on-year, totalling 366.4 million square meters. Although there was a 12.2% month-on-month increase in May, sales were still down 16.1% compared to May 2023. These declines underscore the ongoing struggles within the property sector, despite government efforts to manage oversupply and support financially strained developers.