For the Quarter Ending September 2024
North America
In Q3 2024, the North American Dextrose market experienced a significant uptrend in prices, driven by a complex interplay of factors that fostered a generally positive pricing environment. Increased demand across multiple sectors, particularly from food and beverage manufacturers and the pharmaceutical industry, played a pivotal role in boosting market dynamics. Additionally, supply chain disruptions stemming from logistical challenges and heightened freight costs added pressure on pricing.
The quarter was marked by vigorous trading activity as buyers sought to secure Dextrose amidst tightening supplies and rising production costs. Plant shutdowns due to maintenance or unforeseen circumstances further compounded supply constraints, intensifying price pressures. Notably, the USA witnessed the most pronounced price fluctuations, reflecting a consistent upward trajectory throughout the quarter.
Seasonal trends, combined with correlations in price changes, underscored a strengthening market sentiment. The recorded 4% increase from the previous quarter emphasized the market's resilience, while a comparison between the first and second halves of the quarter showed a 2% uptick, indicative of sustained demand. By the end of the quarter, the price of USD 689/MT for Dextrose Monohydrate CFR New York highlighted the culmination of this positive pricing trend.
Asia Pacific
In Q3 2024, the Asia-Pacific (APAC) region experienced stable prices for Dextrose, with China witnessing the most notable price fluctuations. Key factors influencing these market dynamics included improved industrial profitability, strong foreign demand, and increased market inquiries, which collectively indicated a healthy appetite for Dextrose. Additionally, robust customer interest and seasonal maintenance shutdowns contributed to the overall market activity.
Geopolitical tensions and a scarcity of shipping options further exacerbated price increases, underscoring the complexities of the global supply chain. The raw material Corn market in China remained resilient, driven by strong regional demand, which had a direct impact on Dextrose pricing. When compared to the same quarter last year, prices showed stability, with a modest increase of 1% from the previous quarter in 2024.
By the end of the quarter, the price of Dextrose Monohydrate FOB Shanghai was reported at USD 549/MT. Despite the ongoing fluctuations, the overall sentiment within the region remained stable, reflecting a positive pricing environment. However, notable disruptions, such as the plant shutdown at Shanghai Hao Cheng Food Development Co., Ltd. due to a typhoon, added layers of complexity to the pricing dynamics during the quarter.
Europe
The third quarter of 2024 has witnessed a significant uptrend in Dextrose prices across the European region, with Germany experiencing the most pronounced fluctuations. This surge in prices can be attributed to several interrelated factors. First, there has been heightened global demand for Dextrose, spurred by its diverse applications in the food, pharmaceutical, and beverage industries. Additionally, ongoing supply chain disruptions, including transportation bottlenecks and logistical challenges, have hindered the timely delivery of raw materials, further tightening supply.
Increased production costs have also played a pivotal role in driving prices upward. Factors such as higher energy costs, labor shortages, and inflationary pressures have compounded the challenges faced by producers. Market dynamics, influenced by strong consumer sentiment and robust end-user demand, have fostered a resilient pricing environment. Seasonal trends have exacerbated these price increases, revealing a direct correlation between supply constraints and market prices.
When comparing the third quarter of 2024 to the same period last year, prices have shown a substantial increase. Notably, a 4% rise from the previous quarter underscores a steady upward momentum, culminating in a Dextrose Monohydrate CFR Hamburg price of USD 679/MT, reflecting the current market dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American dextrose market saw a significant decline in prices due to several key factors. Early in the quarter, the market was oversupplied with inventories and faced subdued demand. This was compounded by lower production costs in major manufacturing centers, which intensified competition and triggered a price war. Buyers’ reluctance to commit to new purchases, driven by expectations of further price drops, exacerbated the supply-demand imbalance. Additionally, companies liquidating excess inventories to reduce storage costs and avoid spoilage flooded the market, further pressuring prices.
In the USA, where the most pronounced price fluctuations occurred, the overall trend was distinctly negative. Seasonal factors had little impact, with the decrease in prices primarily reflecting broader market conditions rather than seasonal variations. The price trends were heavily influenced by global supply chain dynamics and increasing competition among exporters. The average percentage change for the quarter was recorded at -1.36%, indicating a steady downward movement in prices.
The quarter ended with dextrose monohydrate prices at USD 654/MT CFR New York, highlighting a challenging pricing environment. Disruptions such as temporary plant closures further contributed to the unstable pricing landscape. This environment underscores the importance of strategic inventory and risk management to navigate the volatility of the market.
Asia Pacific
In Q2 2024, the Dextrose market in the APAC region experienced largely stable imported prices due to a range of influencing factors. Throughout the quarter, prices initially declined but then regained momentum as the period progressed. The stability was primarily attributed to well-managed inventories by suppliers and steady procurement activities from downstream industries. The easing of geopolitical tensions further facilitated smoother trade flows, ensuring an uninterrupted supply chain. However, rising freight costs and increased raw material prices, such as corn starch, placed upward pressure on production costs. Despite these pressures, subdued demand prevented significant price fluctuations.
In South Korea, which saw the most notable price variations, the overall market trend remained relatively stable. The market demonstrated resilience despite challenges such as the closure of the Red Sea shipping route and planned maintenance shutdowns at key plants, including Daesang Corporation. Seasonal effects had minimal impact on prices, which aligned more closely with global market stabilizers rather than seasonal demand shifts.
The quarter ended with Dextrose Monohydrate CFR Busan priced at USD 576/MT, reflecting an average quarterly decline of 1.11%. This stable pricing underscores a balanced market sentiment driven by stable market forces. Overall, Q2 2024 saw a stable pricing environment for Dextrose, supported by consistent market conditions and a balanced outlook.
Europe
In Q2 2024, the European dextrose market witnessed a significant decline in prices, driven by a combination of supply and demand dynamics. Improved production efficiencies in key manufacturing regions resulted in reduced production costs, allowing producers to lower their prices competitively. Earlier in the year, elevated export prices led buyers to postpone purchases in anticipation of better rates, which became evident this quarter.
Furthermore, substantial stockpiling by merchants, expecting increased regional demand, created an oversupply situation that further pressured prices downward. Disruptions such as plant shutdowns in critical production areas intensified the supply glut, as companies sought to liquidate inventories to mitigate storage costs and prevent product deterioration. In Germany, the most pronounced price fluctuations within the European market were observed. The German dextrose market experienced a steady decline, driven by the interplay between surplus inventories and weakened consumer demand amid inflationary pressures.
Prices fell by an average of 1.39% on a quarterly basis. Despite some indications of stabilization in select sectors, the overall market sentiment remained negative, reflecting ongoing bearish trends. By the end of the quarter, the price for Dextrose Monohydrate CFR Hamburg in Germany was USD 642/MT, highlighting the continued downward pressure on prices throughout the period.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the Dextrose market in North America experienced notable price fluctuations due to various factors, resulting in a volatile pricing situation. By the end of the quarter, Dextrose was priced at USD 682 per metric ton CFR New York, indicating an average quarterly increase of 1.02%.
During Q1 2024, the pricing landscape for Dextrose in North America was influenced by a range of factors. Overall, Dextrose prices trended downwards, experiencing a 2.05% decrease compared to the previous quarter. This decline can be attributed to several significant factors. One major driver was the considerable drop in prices observed in key exporting countries, particularly China, which had a ripple effect on global prices, including in the United States, a major importer of Dextrose. Chinese suppliers offered Dextrose at reduced rates, prompting US market players to adjust their pricing strategies to stay competitive.
Another contributing factor to the price decrease was the temporary halt of exports from Chinese provinces in the first half of February. This led to an oversupply situation, as US entities took advantage of the opportunity to place bulk orders at favorable rates. Additionally, the strength of the US dollar against other global currencies facilitated importing at lower costs. The market experienced a significant price downturn, driven by global dynamics and the proactive pricing approaches of market participants.
Asia Pacific
In the first quarter of 2024, the Dextrose market in the Asia-Pacific region, notably in China, witnessed significant price fluctuations but maintained an overall positive trajectory. By the quarter's close, Dextrose prices in China had reached USD 560/MT FOB Shanghai, marking an average quarterly increase of 0.17%.
Several factors drove this favorable pricing trend. Heightened demand from downstream industries, coupled with escalating costs of raw materials such as maleic anhydride, fueled the price surge. Limited supply and logistical hurdles further bolstered prices. Additionally, international demand surged post the Lunar New Year holiday, sparking a revival in the market. Despite temporary slowdowns during the festive period, both regional and global interest in fumaric acid rebounded strongly. China's robust export market supported prices, although challenges like transportation delays and heightened shipping costs due to increased demand persisted. Overall, the market witnessed price hikes due to scarcity, with demand outpacing supply, underscoring the need for market equilibrium. Furthermore, external factors such as trade disruptions in the Red Sea exacerbated the situation, leading to escalated freight costs and dwindling foreign orders.
However, Dextrose prices in China experienced a consistent decline in the middle of the first quarter due to diminished demand and surplus stock resulting from year-end destocking. Normalized freight charges, previously inflated due to geopolitical tensions, also alleviated, contributing to the price downturn.
Europe
In the initial quarter of 2024, the Dextrose market in Europe, particularly in CFR Hamburg, Germany, underwent price fluctuations influenced by various factors. Despite a slight quarterly decrease, ending at USD 670/MT, the market displayed an upward trend with an average quarterly incline of 0.89%, driven by heightened demand from downstream industries.
The first quarter of 2024 presented a mixed period for Dextrose pricing in Europe. Several factors affected market prices during this time. Overall, there was a stable to positive sentiment in the market, with prices experiencing minor fluctuations. One significant factor affecting Dextrose prices was the global increase in freight costs, which had a ripple effect on the market, especially in Germany, a major importer of Dextrose. The rise in shipping costs led to higher prices for Dextrose in the region.
Additionally, the prices of raw materials like corn starch played a role in shaping market dynamics. As the prices of these raw materials increased, suppliers faced higher production costs, resulting in higher Dextrose prices. Moreover, seasonality influenced market prices, with a decline in demand in the first quarter due to holidays and celebrations in exporting nations. This resulted in a decrease in new inquiries and a slowdown in purchasing activity, leading to a relatively stable pricing environment. Specifically in Germany, which witnessed the most significant price changes, the overall trend was a decline compared to the previous quarter, although there was a slight increase compared to the same quarter last year.
For the Quarter Ending December 2023
North America:
In the final quarter of 2023, the Dextrose market in North America encountered a series of challenges and fluctuations. A key factor influencing the market was the surplus of Dextrose, leading to a decline in prices. The latest price for Dextrose Monohydrate CFR New York in the USA for the current quarter stands at USD 662/MT, reflecting an average quarterly decline of 2.08%.
This oversupply stemmed from diminished demand both domestically and internationally. Additionally, suppliers experienced an accumulation of inventory, further affecting pricing. The United States observed a significant decrease in Dextrose prices due to these factors. The price drop was also influenced by reduced demand and a decline in corn prices, the primary raw material for Dextrose production in the USA.
Moreover, global economic conditions, marked by inflation concerns and the potential for a recession, prompted cautious investor behavior and a dip in stock prices. Consequently, the Dextrose market grappled with reduced demand and a situation of moderate to high supply. The projected pricing trend for Dextrose in the USA indicated a continued decrease until the quarter's conclusion.
Asia Pacific:
In the APAC region, the pricing of Dextrose in the fourth quarter of 2023 was influenced by several factors. Throughout the quarter, Dextrose prices witnessed a decline primarily due to decreased demand from downstream sectors. Domestic demand for Dextrose remained subdued as consumers exercised caution in their spending, prompted by persistently high interest rates, leading to a subsequent drop in prices. Recent data also reveals a reduction in inflation in South Korea, driven by declining energy prices affecting transportation and overall operational costs, adding further downward pressure on Dextrose prices.
Additionally, weakened demand in other exporting regions resulted in an increased supply of Dextrose for export to South Korea, contributing to the overall downward price trend. Faced with oversupply and anticipating lower demand, market retailers and distributors responded by offering reduced quotations to clear excess inventory, especially towards the end of the year, maintaining an overall unfavorable market sentiment. In South Korea, the price of Dextrose Monohydrate CFR Busan was recorded at USD 612/MT at the close of the quarter with ana average quarterly decline of 2.09%.
Europe -
In the final quarter of 2023, the European Dextrose market encountered several factors that influenced pricing. Initially, a decline in consumer spending, driven by a weakened economy and high inflation, had a substantial impact. This reduction in purchasing power affected the demand for Dextrose across various industries. Furthermore, the market experienced fluctuations in supply and demand due to the availability of Dextrose in major exporting countries.
In Germany, which constitutes the largest market in Europe, Dextrose prices mirrored the trends observed in these major exporting nations. The country witnessed a significant price decrease, attributed to surplus inventory among suppliers and reduced demand from downstream markets. The imbalance between supply and demand contributed to a noteworthy drop in Dextrose prices. Additionally, the German economy underwent a mild recession, marked by a contraction in the manufacturing sector and a decline in consumer spending.
In the fourth quarter of 2023, the price of Dextrose in Germany amounted to USD 654/MT of Dextrose Monohydrate CFR Hamburg, with an average quarterly decline of 1.47%. Overall, the Dextrose market in Europe grappled with challenges in supply and demand dynamics, leading to pronounced price fluctuations in Germany.
