During the first half of June 2024, US Glutaraldehyde prices declined by approximately 2%, following a 2.9% decrease in May 2024. The reduction in May was driven by weakened demand from domestic sectors such as disinfectants used in water treatment and laboratories. This decline resulted from consumers opting for alternative disinfectants, which reduced the demand for Glutaraldehyde and consequently drove prices lower. Meanwhile, over the same period, feedstock Hydrogen Peroxide prices (Free on Board) rose significantly by more than 2.3%, mainly due to increased freight charges for ocean shipments. These heightened transportation costs led to higher overall production expenses, exerting upward pressure on prices. Furthermore, despite lackluster demand, supply remained abundant. Throughout this period, the US Glutaraldehyde market sustained ample supply, enabling traders to maintain satisfactory inventory levels. However, in May 2024, there was a noticeable increase in the Industrial Chemical Producer Price Index (PPI), climbing from 299.909 in March 2024 to 307.633 in April. This upward trend seems transferring into May 2024, indicating that amidst the plentiful supply, elevated inventory levels contributed to increased Glutaraldehyde supply during the month.

Glutaraldehyde prices in the Asian market rose during the first half of the month, increasing by approximately 2.5% following a 2.3% uptick in the previous month. This significant rise in Gluteraldehyde was primarily driven by higher production costs, notably with Hydrogen Peroxide feedstock prices seeing a substantial increase of over 2.4%. The escalation in production costs was further exacerbated by higher shipping charges during the month, contributing to the overall price hike of Glutaraldehyde. Additionally, the period also experienced congestion issues at major Asian ports, causing delays in shipments reaching their destinations. These port congestions adversely affected the transportation process, ultimately leading to increased costs for Glutaraldehyde in the Chinese market.

However, ocean freight charges significantly impacted the overall Glutaraldehyde trade. US container import spot rates from North Asia and Southeast Asia notably increased, reaching their highest levels in nearly two years. This situation was compounded by diversions in the Red Sea, worsening capacity issues along East Asian shipping lanes. Furthermore, disrupted shipping schedules exacerbated supply strains, causing congestion at major Asian ports such as Shanghai, Ningbo, and Singapore. Towards the end of May, shipping rates from East Asia to the West Coast of North America surged by 47%, while East Coast imports rose by 42%. Exporters also encountered a 110% increase in freight rates for shipments from the North American West Coast to East Asia, alongside approximately a 15% decrease for exports from the East Coast.

In conclusion, analysts predict that Glutaraldehyde prices are likely to continue following the same trend in coming weeks influenced by ongoing factors such as escalated ocean freight charges, disruptions in shipping schedules, and congestion at major Asian ports.