The prices of Soy Protein Isolate (SPI) are expected to remain elevated globally throughout the final quarter of 2024, driven by various influences. Key among these factors is an increasing demand from end-user industries, paired with limited supply availability. In anticipation of further price increases, several businesses could choose to adjust SPI pricing upward, sustaining a positive market outlook and fostering a bullish sentiment across the sector.

The positive growth in China’s manufacturing sector in October, as indicated by the slight increase in the PMI from 49.8 to 50.1, signals the beginning of economic stabilization following recent government stimulus measures. This recovery is likely to have a significant impact on the demand for industrial materials, including SPI. As both domestic and export orders rise, the demand for SPI, particularly in sectors like food production, is expected to remain strong. Furthermore, the typical surge in demand during the Golden Week in the first week of October, due to increased consumption in the food industry, would contribute to higher SPI consumption, supporting its upward price trajectory.

In Germany, a surprising rise in business morale has kindled hopes for economic recovery, providing some relief from ongoing industrial hurdles. This renewed optimism is further supported by the European Central Bank's decision to lower its key interest rate to 3.25%—the third cut this year. This monetary easing is expected to boost consumer confidence, which in turn encourages both spending and investment across multiple sectors, including those dependent on SPI. The anticipated increase in demand driven by heightened economic activity is likely to place additional upward pressure on SPI prices, sustaining their positive momentum in the market.

In the United States, persistent port congestion, worsened by labor strikes that began on October 1 at East and Gulf Coast ports, has severely disrupted supply chains, leading to delays in the distribution of various products including SPI. These logistical bottlenecks have amplified the existing supply-demand imbalance, creating heightened competition for the limited available supply. As a result, SPI prices are experiencing upward pressure, driven by the intensified demand from buyers eager to secure shipments amid restricted access and prolonged distribution times.

Furthermore, the ongoing attacks by the Houthis on ships in the Red Sea corridor have severely disrupted international shipping routes, adding another layer of complexity to global supply chains. This instability has led to significant shipping delays and higher freight costs, as carriers are forced to either reroute vessels around the conflict zones or implement enhanced security measures. As a result, the increased transportation costs and supply chain uncertainties are contributing to the upward pressure on SPI prices.

According to ChemAnalyst's analysis, SPI prices are expected to keep rising due to sustained demand and increasing raw material costs. In addition, the upcoming holiday season, including Thanksgiving and Christmas, is anticipated to further drive demand in the food industry. These festive periods typically lead to a surge in the consumption of processed and specialty food products, which will likely place additional pressure on SPI supply, further fueling price increases.