Global Liquid Glucose Market Braces for September Price Hike
- 03-Sep-2024 2:42 PM
- Journalist: Robert Hume
The prices of Liquid Glucose are expected to rise in the global market during September, following a decline in the previous month. This upward trend is attributed to a rebound in demand from end-user industries, coupled with a tightened supply in the market. As these dynamics shift, manufacturers and sellers could adjust their pricing strategies upward, bolstering overall market sentiment.
According to recent data, the Indian manufacturing sector sustained its growth in August, albeit at a somewhat slower pace. While the increase in new orders for the manufacturing sector decelerated to its lowest level since February, the expansion remained robust, reflecting strong demand and favorable market conditions. This continued momentum has contributed to the upward trend in Liquid Glucose prices.
The recent report by popular source highlights a significant shift in the factors driving India's food inflation, with rising temperatures now surpassing rainfall as the primary predictor. As India experiences scorching summer temperatures nearing 50°C, the intense heat is expected to adversely affect crop yields across various categories, including both perishable and durable crops. This climate-induced stress on agricultural production can lead to reduced availability of key inputs such as starch, derived from crops like corn, which is essential for producing Liquid Glucose. Consequently, the constrained supply of these raw materials, coupled with heightened demand, is likely to contribute to an increase in Liquid Glucose prices. As manufacturers face higher input costs due to lower crop yields, they may pass these costs onto consumers, driving up Liquid Glucose prices in the global market.
As India remains a major exporter of Liquid Glucose, similar trends are anticipated in regions like Vietnam and Indonesia. The appreciation of the Indonesian Rupiah and Vietnamese Dong against the USD has made Liquid Glucose more affordable for local buyers, driving up demand and contributing to price increases. This surge in demand, coupled with global supply constraints, is likely to push Liquid Glucose prices higher.
On the other hand, the Western region could also follow a similar trajectory. Recent data shows that inflation in Europe has sharply decreased to 2.2% in August, which has strengthened expectations that the European Central Bank (ECB) may continue to cut interest rates throughout the year. This potential easing of monetary policy could reduce the financial burden on consumers, potentially supporting an increase in Liquid Glucose prices. In the USA, consumer confidence rose to a six-month high in August, driven by more positive views of the economy and inflation, even as optimism about the labor market waned. This boost in consumer confidence is likely to support higher demand for Liquid Glucose, contributing to an upward trend in its prices.
According to ChemAnalyst's analysis, Liquid Glucose prices are expected to continue rising due to sustained demand from end-consumers. However, this upward trend is tempered by potential risks such as geopolitical tensions, fluctuations in international commodity prices, and ongoing geo-economic fragmentation. These factors could introduce volatility into the market and impact the overall economic outlook, potentially influencing the trajectory of Liquid Glucose prices.