Global Glyoxylic Acid Prices Incline Amidst Reviving Demand

During the initial half of April 2024, the global Glyoxylic Acid witnessed a notable escalation in prices within the global marketplace. This surge can be attributed to several factors, notably the fluctuating prices of raw materials such as Nitric Acid and Ammonia. These fluctuations, observed persistently throughout this period, alongside a resurgence in demand from downstream sectors, particularly the cosmetics and haircare industries, collectively exerted upward pressure on the costs associated with Glyoxylic Acid.

In Europe, the Glyoxylic Acid market experienced a noteworthy surge, registering a margin of 1.4%. This upswing occurred amidst a widening gap between demand and supply dynamics. Notably, during this period, the demand for Glyoxylic Acid remained steady from both domestic and international markets, particularly in anticipation of the forthcoming summer season demand. Moreover, various surveys conducted during this timeframe have indicated that manufacturing units within the region are operating at a reduced capacity, consequently leading to a slight shortage of the material within the German market. Despite recent rail strikes in Germany, market participants have conveyed their conviction that these disruptions would not immediately inflict debilitating effects on various commodity markets, including Glyoxylic Acid. Simultaneously, it is noteworthy that the Euro area's annual inflation rate witnessed a decline to 2.4% in March 2024, down from 2.6% in February, as per a flash estimate from Eurostat. This reduction in the inflation rate bears mixed implications for the demand dynamics of Glyoxylic Acid.

Similarly, the Chinese Glyoxylic Acid market observed a modest increase in prices during the specified period. This upward trend in prices can be attributed to various factors, prominently including robust demand for Glyoxylic Acid from international markets. Sustained inquiries from both domestic and international markets, notably the Indian market, remained buoyant, driven by the robust performance of the cosmetics and haircare industry, particularly in anticipation of the summer season. Concurrently, manufacturing unit performance in the northern region of the country demonstrated suboptimal levels, contributing to supply-side constraints. Moreover, transportation encountered certain restrictions, thereby leading to reduced load capacities for most manufacturers and subsequently causing delays and increased transportation costs for the material. This confluence of factors has ultimately widened the gap between demand and supply, thereby bolstering the prevailing price surge in the market.

According to the analysis conducted by ChemAnalyst, it is forecasted that the Glyoxylic Acid market will undergo an upward trend in the upcoming months. This expectation is chiefly driven by an anticipated increase in seasonal demand coupled with an anticipated shortage of inventories. These insights highlight the significance of taking into account seasonal variations and inventory levels when evaluating the prospective trajectory of the Glyoxylic Acid market.