Glyoxal prices surged in November 2024, significantly impacting the USA and India markets. This increase was driven by a combination of global trade uncertainties, anticipated tariff adjustments, and modest downstream demand. In North America, rising freight costs, strong construction sector activity, and inventory stockpiling contributed to the price surge. In India, robust international export orders and higher input costs for chemicals, cotton, and rubber played a role. These factors, coupled with constrained supply from domestic and import sources, kept Glyoxal prices elevated.

Glyoxal prices in North America continued their upward trend in November 2024, driven by strong demand and rising freight costs. The construction sector emerged as a key demand driver, with a near 9% increase in the construction material index signalling heightened project activity. Strategic inventory stockpiling also fuelled the price surge, as market players anticipated potential tariff adjustments under the new administration. Freight conditions worsened with expected rate hikes in December, adding pressure on manufacturers and importers. Carriers repositioned vessels to capitalize on trade opportunities in regions like the Red Sea and Mediterranean, disrupting supply routes. A slight shortage of domestically produced Glyoxal further strained supply, despite new orders increasing after eight months and a drop in factory input prices. Supply constraints stemmed from reduced production capacity, labour market challenges, and energy cost fluctuations, compounded by cautious manufacturer decisions ahead of national elections and festive periods. Demand for Glyoxal remained robust, driven by a resilient construction sector. In November, the U.S. construction industry added around 10,000 jobs, reflecting contractor optimism despite interest rates and economic uncertainties.

Glyoxal prices in India surged during November, reversing the previous downward trend. This increase was driven by robust international demand, highlighted by a four-month peak in export orders, along with mixed purchasing activity in the downstream construction sector. Rising input costs for chemicals, cotton, and rubber also contributed to the price uptick. On the supply side the Indian market saw a slight shortage of both domestically produced and imported Glyoxal. Domestic manufacturing contracted in November, exacerbated by higher costs of Chinese exports. Freight challenges further intensified as intra-Asia-India spot rates doubled over the month due to constrained shipping capacity, with carriers shifting vessels to more profitable trade routes. Further, Demand for Glyoxal remained moderate in India’s construction sector supported by a rise in urban property registrations, with Mumbai recording a 5% year-on-year growth in November 2024. Increased construction activity, spurred by housing projects, maintains Glyoxal consumption. However, month-on-month property registration dipped by 27%, reflecting a post-festive season slowdown and election-related uncertainty.

According to ChemAnalyst, Glyoxal prices in the market are anticipated to see a decline in December 2024. This expected decrease is attributed to traders engaging in end-of-year destocking activities, which are common as companies aim to clear excess inventory before the year closes. Such activities are likely to result in reduced demand and a temporary oversupply of Glyoxal in the market, putting downward pressure on prices.