Glyoxylic Acid Prices Hold Steady Amid Supply Challenges and Subdued Demand in Europe and Asia

The price of Glyoxylic Acid exhibited a phase of stagnancy during the first half of November 2024. However, the price of essential feedstock Nitric Acid kept fluctuating during this period but its cost pressure on Glyoxylic Acid prices remained limited. This stability can be largely attributed to subdued domestic demand in Europe’s personal care and cosmetics sectors and an incremental rise in international offers.

The European Glyoxylic Acid market experienced stagnant pricing during the review period, reflecting a balance between moderate demand and persistent supply-side challenges. Demand for Glyoxylic Acid across Europe remained subdued, with only temporary boosts linked to Carnival celebrations and seasonal festivities. This uptick was particularly evident in sectors such as fragrances, food, and personal care products, key consumers for Glyoxylic Acid. Nevertheless, the overall demand outlook remains cautious, as economic uncertainties continue to dampen consumer confidence and downstream activities. On the supply side, production challenges were prominent, with manufacturing facilities operating at reduced capacities. Seasonal festivities and adverse weather conditions further exacerbated these constraints, limiting production outputs. Additionally, logistical disruptions, notably at Germany’s Hamburg Port, hindered the seamless inflow of cargoes, adding to supply chain complexities.

A significant development in the regulatory landscape also impacted market dynamics. The European Commission’s recent decision to register imports of Glyoxylic Acid from the People’s Republic of China, potentially a precursor to trade restrictions or anti-dumping measures, has introduced an element of caution among importers. This regulatory uncertainty could lead to tighter supply conditions if it results in reduced import volumes. Given these factors, the European Glyoxylic Acid market may face upward pricing pressures in the near future.

Similarly, in the broader Asian market, Glyoxylic Acid prices remained stable during the period. In India, demand from downstream sectors, particularly the cosmetics and haircare industries, showed consistency, with no notable increase in bids or new inquiries observed from end-users. However, with the conclusion of regional festive celebrations, demand for Glyoxylic Acid began to exhibit signs of tapering as seasonal buying activity normalized. This stability in pricing was supported by adequate supply levels and steady production activities across the region, which effectively met existing market needs despite the slight dip in post-festive demand.

According to an analysis by ChemAnalyst, the global market price of Glyoxylic Acid is projected to experience a surge in the coming months. This anticipated price increase can be attributed to several factors, including persistent supply chain bottlenecks that continue to disrupt smooth operations across key markets. Additionally, the approach of upcoming festive seasons in Western regions is expected to boost demand for Glyoxylic Acid, particularly from downstream sectors such as fragrances, cosmetics, and food products, further contributing to upward pricing pressure.