Global Glyoxylic Acid Market Experiences Slight Price Surge Following Prolonged Stability Period

During the past two weeks of October 2023, the Glyoxylic Acid market has witnessed a slight uptick in prices in the global market after a prolonged period of stagnancy. This price uptick was mainly attributed to a confluence of factors, including tight supplies of feedstock material, revived demand, and heightened production rates.

The North American Glyoxylic Acid market experienced a significant price surge in the second half of October 2023. This price escalation can be attributed to several key factors, including elevated feedstock Nitric Acid and upstream Natural Gas costs, alongside robust demand from downstream industries. The increased expenses associated with raw materials stimulated heightened production rates, resulting in an upturn in Glyoxylic Acid prices. Further, the product sustained strong demand from the Asian market, particularly within the cosmetics and haircare industry, in anticipation of the upcoming festive season. In addition to that US Bureau of Labor Statistics data indicates a noteworthy 0.5% increase in the Producer Price Index for the country in September, with expectations of further increases. This upward trend suggests heightened consumption of goods in the market.

Similarly, the Chinese Glyoxylic Acid market experienced a slight uptick in price during this period. This price escalation was attributed to several factors, including firm demand for Glyoxylic Acid from the international market and elevated cost of essential feedstock Nitric Acid and upstream Ammonia. Inquiries from domestic and international markets, particularly the Indian market, remained firm amidst the strong performance of the cosmetics and haircare industry in the wake of the forthcoming festive season. Furthermore, amidst the Golden Week holidays, manufacturing activities within the country operated at a slower rate, leading to a shortage of supplies. The confluence of these factors prompted a widened demand-supply gap supporting the increased price trend of Glyoxylic Acid. Additionally, as per data released from the National Bureau of Labor and Statistics, the new export order index increased marginally from 46.7 in August 2023 to 47.8 in September 2023, thus indicating the consumption of goods.

Rising feedstock costs and upstream materials primarily drove the increase in Glyoxylic Acid prices in Europe. Notably, domestic cosmetics and haircare industry demand remained subdued despite these increased costs. Furthermore, the prevailing global inflationary pressures compelled regulatory authorities to implement measures to mitigate the economic impact. In response, the European Central Bank raised interest rates to counteract inflation within the European region. This policy change had a ripple effect on the commodity market, leading traders and suppliers to raise prices for specific commodities, including Glyoxylic Acid, to safeguard their profit margins.

As per Chemanalyst, it is anticipated that Glyoxylic Acid prices will increase globally in the upcoming months. This price hike can be attributed to the rising costs of feedstock Nitric Acid and upstream Natural Gas. Further, there is an anticipated strong demand for Glyoxylic Acid from the downstream cosmetics industry in the coming months, which is expected to contribute to the price increase.