The global Glyoxal market experienced a notable decline in prices throughout August 2024, driven by several key factors. One of the primary contributors to this price drop was the consistent decline in the cost of crude oil, a critical raw material in Glyoxal production. This downward trend in crude oil prices exerted downward pressure on Glyoxal costs, creating a more favorable production environment for manufacturers. Additionally, the market witnessed a narrowing disparity between demand and supply, further contributing to the overall price reduction.  During this period, demand for Glyoxal remained inconsistent, largely due to the weak performance of significant end-use sectors, particularly the construction industry. The construction sector, a major consumer of Glyoxal in applications such as coatings and resins, experienced reduced activity, dampening the overall demand for Glyoxal.

In the North American market, Glyoxal prices saw a sharp decline of 18.9% throughout August 2024, influenced by a combination of global and domestic factors. Primarily, the declining cost of crude oil, a vital raw material for Glyoxal production, played a central role in this downward price trend. This decline was fueled by investor optimism surrounding the potential approval of a cease-fire agreement by Israel, which was expected to ease geopolitical tensions. On the demand side, the market faced fluctuating requirements from key end-use sectors, particularly the construction industry. According to insights from market participants, home sellers slowed their listing activity in August, with 0.9% fewer homes newly listed compared to the same period last year. Furthermore, construction spending declined throughout August 2024 in the region. In addition to this, the Real Estate Development industry experienced a 3.5% decline in the latter period of August. Additionally, the total number of unsold homes, including those under contract, increased by 20.9% compared to the previous year. These factors collectively point to reduced construction activities within the region, leading to a decrease in Glyoxal demand in the North American market. The combination of subdued construction activity, a growing inventory of unsold homes, and a sluggish real estate sector has contributed to the overall reduction in Glyoxal consumption.

Similarly, Glyoxal prices in the Asian market experienced a significant decline, with China emerging as the most impacted region. The muted demand from the construction sector, a key end-user of Glyoxal, was a major factor behind this price plunge. The ongoing global economic downturn, marked by high interest rates, inflation, and rising unemployment in major economies such as the United States and China, further suppressed energy demand, which in turn contributed to the downward pressure on Glyoxal prices. In addition to the broader economic challenges, the demand for Glyoxal remained inconsistent due to the weak performance of major end-use industries, particularly the construction sector. According to data from the National Bureau of Statistics (NBS) in China, the new order index slightly decreased from 49.3 in July 2024 to 48.9 in August 2024, signaling a continued contraction in new business activity. Furthermore, China’s construction PMI also dipped slightly during this period, indicating reduced activity in the construction sector, which plays a critical role in Glyoxal consumption for applications like coatings, adhesives, and resins.

ChemAnalyst analysis indicates that the Glyoxal market is projected to rise in the coming months, primarily driven by a seasonal uptick in demand coupled with low inventory levels.  In the North American market, it is anticipated that earnings in the downstream construction sector are projected to grow by approximately more than 60% annually over the next few years.