Liquid Glucose Prices Poised for a Gradual Decline in March Amid Ample Feedstock Supply
- 25-Mar-2025 3:59 PM
- Journalist: Timothy Greene
Global liquid glucose prices are forecast to nudge lower in March, following February’s significant decline, as markets struggle with ample feedstock availability and soft demand. Given these circumstances, players in the industry are anticipated to make only minor price revisions to defend their stake in the marketplace.
February's sharp price correction was mainly caused by better feedstock availability, particularly corn, a major ingredient for liquid glucose manufacturing. The growth of rabi season maize hectares in India was a significant driver. Encouraged by previous price spikes, farmers sowed extra corn in the winter cropping season. This strategic transition was meant to take advantage of high profit margins but brought an oversupply as new crops started to enter the market late in 2024. The sudden corn influx, which combined with moderate industrial demand in February created a supply-demand imbalance, compelled producers to reduce liquid glucose prices so as to clear inventories.
March saw the market having mostly taken in the first supply shock, but the longterm impact of over corn stock kept to push upon liquid glucose prices. Although feedstock prices steadied a bit, the relatively modest corn supply in comparison to demand kept liquid glucose prices under stress. Moreover, slowed demand in major importing countries like Indonesia and Vietnam compounded the prospects of price rebound.
India, the key supplier in this trade route, is anticipated to experience a small fluctuation in liquid glucose prices for most of March, due to constant export orders from Southeast Asia. Domestic demand too, is expected to remain soft due to slow down in consumption of liquid glucose in the food processing sector. With lower corn raw material costs, Indian manufacturers would be able to continue competitive pricing that should help maintain their market position in global markets.
Importers in Vietnam and Indonesia kept to be cautious as they expected more price changes, therefore restricting bulk acquisitions. Buyers chose to keep small inventories in spite of a constant stream of Indian goods entering these markets, therefore dampening demand. Weaker local currencies also drove up import expense, hence supporting a conservative buying approach and adding to downward pressure of liquid glucose prices.
As per the ChemAnalyst analysis, present price movement points to a market that is in equilibrium without any disturbing factors for volatility. But the arrival of summer—the peak time for consumption of liquid glucose in drinks, ice creams and confectionery products—could provide a fresh boost to demand. A periodical hike in consumption could benefit in absorbing excess stocks and may also ensure a certain degree of price stability. But for now, however, the combination of sufficient feedingstock supplies and prudent procurement practices suggests a continued but slow reduction in liquid glucose prices.