Global Glutaraldehyde Market Faces Challenges Amid Weak Demand, Eyes Recovery in 2024

The global Glutaraldehyde market experienced a weakened purchasing environment, with prices consistently trending downward due to sluggish overseas demand and reduced bids from major manufacturing units. This decline in demand and slow market off-takes led to a slump in Glutaraldehyde exports from significant production units. Amidst low demand and high inventories, regional Glutaraldehyde markets traded sideways and suffered losses. Limited demand for fresh stocks, coupled with lower Glutaraldehyde settlements, further pushed prices down, especially with the December settlement experiencing a decline.

The weakened demand scenario was evident across various sectors, including limited demand for Glutaraldehyde 50% from medical sterilization and laboratory sectors. Downstream ventures such as leather tanning industries and oil and gas industries were also cautiously conducting operations, contributing to the overall subdued market conditions. The situation was exacerbated by a lack of support from supply-demand dynamics.

Meanwhile, exports of Glutaraldehyde from China to European regions saw a decline, impacting market off-takes in the region. The Glutaraldehyde 50% price in China dropped to USD 1100/MT FOB Shandong by the end of 2023, reflecting the overall slump in the market. The feedstock formaldehyde also experienced a contraction, narrowing profit margins and sales among enterprises.

In the USA, the recovery in demand fell below expectations due to surplus inventories and low operating rates among downstream ventures. Downstream players showed reluctance to purchase, given their sufficient existing stocks, and the sector displayed no signs of demand recovery. In the formaldehyde market, prices exhibited a southward trend with reduced trading activities.

The European Glutaraldehyde market faced similar challenges, with slow demand recovery and continuous product utilization affecting overall market conditions. Short-term trading activities were expected to be limited, with discounts offered on bulk purchases from suppliers. The downstream industries had yet to show significant improvement in demand, and oversupplies hampered market progression. Formaldehyde prices in the feedstock market also moved sideways, influenced by weak contract prices resulting from muted demand from downstream enterprises.

Therefore, the Glutaraldehyde market confronted a multitude of challenges, including weakened demand, oversupplies, and slow recovery in downstream industries. These factors contributed to a downward trend in prices and limited trading activities, with the market awaiting signs of improvement in demand from various sectors.

As per the ChemAnalyst Forecast, the Glutaraldehyde market is anticipated to undergo a recovery at the beginning of 2024. This resurgence is attributed to robust restocking activities driven by strong demand in downstream sectors. Furthermore, the challenges in the Glutaraldehyde supply chain, particularly influenced by the formaldehyde market as a vital feedstock, are expected to contribute to elevated production costs in the region. This, in turn, is likely to result in increased import prices for the European market.