Global Glyoxylic Acid Prices Surge in August 2024 Amid Supply Shortages and Robust Demand

The global Glyoxylic Acid market kept fluctuating and remained on an upward side through August 2024. This increase in the price of Glyoxylic Acid in the global market can be attributed to a combination of factors including a lack of raw materials, firm industrial demand.  In North America, the market is suffering from severe shortages of material, problems were exacerbated by trade uncertainties in exporting country China and delayed exports of Glyoxylic Acid which disrupted supply chains. In addition, in the Asian market, prices have increased due to strong export demand, with China and India having the greatest impact.

In the North American market, the price of Glyoxylic Acid experienced a significant increase on a month-on-month basis. This surge can be largely attributed to the widening gap between supply and demand. A notable shortage of imported materials has been reported, further exacerbated by persistent global port congestion. Congestion levels have reached a two-year high, severely disrupting the supply chain. Major Chinese ports, including Shanghai, Ningbo, Yantian, and Qingdao, have been particularly affected, with berthing delays of up to two days due to high vessel traffic and the bunching of arrivals. Although some improvements have been observed at Southeast Asian ports, vessels arriving at ports like Singapore, Port Klang, and Tanjung Pelepas, as well as those in the western region, continue to face delays ranging from one to two days.

The demand for Glyoxylic Acid in North America has remained robust, driven by strong downstream demand from the cosmetics and haircare industries, particularly in anticipation of the upcoming festive season. Major companies such as L'Oréal and Maybelline have reported better-than-expected Q2 sales in the U.S. and are projecting continued growth throughout Q3, further driving up demand for Glyoxylic Acid, a key ingredient in the cosmetics industry.

Similarly, in the Asian market, prices of Glyoxylic Acid continue to fluctuate and increase month-on-month due to strong demand for ingredients from the cosmetics and personal care market, particularly from India. The fact that the festival season is arrival in the coming month. At the same time, the performance of the production sector in the northern region of exporting country China shows less than optimal levels, contributing to constraints on the supply side of various commodities including Glyoxylic Acid. In addition, transportation faced some limitations, due to a decrease in cargo capacity for most manufacturers, and increased transportation costs for materials. This confluence of factors widened the gap between demand and supply, which in turn fueled the price increase of Glyoxylic Acid in the market.

According to the analysis conducted by ChemAnalyst, the Glyoxylic Acid market is expected to increase in the coming months. This expectation is largely due to the seasonal increase in demand and lack of inventory.