For the Quarter Ending September 2024
North America
During Q3 2024, the US market for Dipotassium EDTA faced challenges akin to those in Europe, primarily due to its significant reliance on imports from India. The dynamics of this market were shaped by a confluence of international pricing trends and evolving domestic demand patterns. US buyers adopted a cautious procurement strategy, vigilantly monitoring the declining prices in the Indian market while strategically managing their inventory levels to avoid overstocking in a volatile environment.
The prevailing sentiment among domestic end-users remained cautious, prompting many to adopt a wait-and-watch approach in light of global price uncertainties. This approach reflects a broader market hesitancy, as stakeholders anticipate potential shifts in pricing trends. As an import-dependent region, US market prices exhibited a pronounced correlation with Indian export prices, though this relationship was further complicated by factors such as extended transportation times and elevated logistics costs associated with trans-Pacific shipments.
Throughout the quarter, prices exhibited a consistent downward trajectory, mirroring global trends. However, the US market faced additional challenges due to transportation premiums and regional distribution costs, leading to a nuanced pricing landscape that diverged from Indian export prices.
Asia
Throughout Q3 2024, the APAC region faced a challenging landscape for Dipotassium EDTA pricing, marked by a persistent decline in prices. This downward trend can be attributed to several interrelated factors, including weak demand across multiple industries, an oversupplied market, and fluctuating raw material costs. The combination of these elements fostered a negative sentiment among market participants, significantly impacting pricing dynamics. Additionally, disruptions such as plant shutdowns exacerbated the situation, further contributing to the downward pressure on prices.
The most pronounced effects were observed in India, where market volatility led to the most significant price changes. Throughout the quarter, prices exhibited a seasonal pattern, demonstrating a steady decrease. The correlation between price fluctuations and market conditions was clear, with a direct relationship observed between demand levels, supply dynamics, and pricing trends. Notably, the percentage change from the previous quarter remained stagnant at 0%, indicating a prolonged downward trajectory. A comparative analysis of prices between the first and second halves of the quarter revealed a decline of 1%.
As Q3 2024 concluded, the latest quarter-ending price for Dipotassium EDTA 98% Ex-Vadodara in India settled at USD 245,000/MT, further underscoring the prevailing negative pricing environment in the region. This development highlights the need for market participants to navigate carefully in light of ongoing challenges.
Europe
Throughout Q3 2024, the European market for Dipotassium EDTA experienced notable price fluctuations, significantly influenced by its heavy reliance on imports from India. The region felt a cascading effect from declining prices in the APAC market, although this impact was somewhat delayed due to existing contractual obligations and transportation timelines. As European market participants navigated these complexities, they encountered challenges in inventory management, striving to balance the need for competitive import prices with the necessity of maintaining adequate stock levels.
Downstream industries exhibited cautious buying patterns, reflecting a broader sense of market uncertainty. This hesitation contributed to a subdued market sentiment, further complicating the pricing landscape. As a primary importing region, Europe’s pricing dynamics were intricately linked to Indian export prices, logistics costs, and fluctuations in regional demand
Throughout the quarter, European prices displayed a gradual downward trend, albeit less pronounced than in the Indian market. The strong correlation between European market prices and Indian export rates remained evident, with additional considerations such as freight costs and the Euro-USD exchange rate significantly influencing overall market dynamics. These interconnected factors will likely continue to shape the Dipotassium EDTA landscape in the upcoming quarters.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Dipotassium EDTA market experienced significant price fluctuations driven by shifts in supply and demand. A notable price decline was observed in April in the United States, a trend that also affected Chinese provinces. This decrease can be attributed to the easing of geopolitical tensions, which resulted in reduced freight charges and lower shipment costs. Additionally, substantial inventories accumulated from bulk purchases in anticipation of increased demand, combined with reduced purchasing activity and diminished consumer confidence due to inflation, contributed to a softer market.
Supply-side factors further influenced the market, with the appreciation of the U.S. dollar compounding the downward pressure on prices. Global supply chain disruptions, ongoing geopolitical tensions, and logistical challenges such as drought-related bottlenecks and prolonged vessel delays also played a role. The imposition of a General Rate Increase (GRI) by shipping carriers further exacerbated procurement costs, prompting industry participants to engage in bulk buying strategies to navigate future supply uncertainties and leverage existing arbitrage opportunities.
In the U.S., the most pronounced price shifts were linked to the early onset of the peak shipping season, vigorous local purchasing, and strong downstream demand. Seasonal factors, particularly the anticipated increase in demand during the summer, played a key role in driving price increases.
APAC
In Q2 2024, the Dipotassium EDTA market in the APAC region experienced a significant price increase due to several key factors. The surge in prices is largely driven by strong domestic and international demand, which has outstripped the limited supply. This imbalance is a result of heightened procurement activities from various downstream sectors and strategic purchasing by traders aiming to capitalize on elevated prices. Additionally, rising input costs, particularly in energy, have led to higher production expenses, further pushing up end-product prices. Increased freight costs, driven by soaring crude oil prices, have also contributed to higher import prices, while global supply chain disruptions and plant shutdowns have intensified supply constraints.
In India, which has witnessed the most pronounced price changes, market conditions reflect a robust pricing environment. Seasonal factors, such as severe heatwaves, have increased power consumption and consequently raised production costs. The Indian market has seen substantial price hikes, with an average quarterly increase of 1.95%. The ongoing devaluation of the Indian Rupee against the US Dollar has exacerbated import costs, reinforcing the upward trend in prices. By the end of the quarter, the price for Dipotassium EDTA 98% Ex-Vadodara settled at USD 2998.88/MT, highlighting a predominantly positive pricing environment driven by persistent demand, high production costs, and logistical challenges.
Overall, the Dipotassium EDTA market in the APAC region remains under significant pressure from rising costs and supply chain disruptions. The combination of strong demand, elevated production expenses, and logistical hurdles has contributed to a continued upward trajectory in prices, particularly evident in the Indian market.
Europe
In Q2 2024, the European Dipotassium EDTA market witnessed a substantial price surge due to escalating production costs, geopolitical disruptions, and supply chain limitations. Germany, a key importer, experienced a notable price reduction in April, attributable to a broader downturn in exporting regions. This decline resulted from significant inventories accumulated through previous bulk purchases, which led to an oversupply and weakened market sentiment. The combination of reduced purchasing activity and diminished consumer confidence, exacerbated by inflationary pressures, further curtailed demand.
The easing of geopolitical tensions contributed to a decrease in freight charges, thereby affecting transportation costs and overall pricing in Germany. Additionally, supply dynamics were influenced by the appreciation of the US Dollar against the Euro, presenting challenges for producers and suppliers. Rising feedstock prices have significantly increased production costs. Compounding these issues were logistical disruptions from the Panama Canal drought and reduced vessel traffic, which created supply bottlenecks and strained the market. The ongoing conflict in Israel and Gaza also led to sporadic shipping delays, particularly impacting routes through the Red Sea and Cape of Good Hope, and exacerbating market volatility.
In Germany, a combination of a weakened Euro and intensified inflationary pressures further drove prices upward. The convergence of these factors highlights the complex interplay between geopolitical events, currency fluctuations, and logistical challenges impacting the Dipotassium EDTA market.
For the Quarter Ending March 2024
North America
During the initial months of 2024, there was significant volatility in the market, marked by a consistent decline in prices. Initially, prices were on an upward trend due to strong demand for Dipotassium EDTA. This increased demand prompted several manufacturers to expand their production capacities in anticipation of continued market growth.
However, this expansion posed challenges. Rising production costs, combined with the heightened demand, led to higher product prices. Furthermore, decreased freight charges resulted in a fragile and concentrated market landscape. On a positive note, raw material prices saw a substantial decrease, which benefited the manufacturing costs of Dipotassium EDTA.
As the quarter progressed into March, there was a noticeable shift. Prices sharply dropped due to excessive stockpiling by domestic manufacturers and local suppliers. This situation was worsened by weak demand in downstream industries and limited import prospects both domestically and internationally. The resulting oversupply prompted exporting regions' market players to reduce prices, subsequently influencing pricing trends in the North American market. This scenario of reduced demand and oversupply highlighted the necessity of maintaining competitiveness, particularly in North America, where significant import volumes are commonplace.
Asia
In the first quarter of 2024, the pricing landscape of Dipotassium EDTA in the Asia-Pacific (APAC) region was shaped by a multitude of factors, extending beyond the typical influences. Particularly, the market scenario in India emerged as a focal point with notable price fluctuations. However, to gain a comprehensive understanding, it is imperative to delve into the broader context that defined this quarter. Across the region, there was an observable downward trajectory in prices, marking a significant decrease when compared to the corresponding quarter of the previous year.
This decline can be attributed to a delicate interplay of supply and demand dynamics, ultimately shaping a consolidated market sentiment. Notably, there was subdued demand from downstream industries, a key factor leading to an accumulation of excess inventory among domestic suppliers. Moreover, the descent in raw material prices also contributed to the overall downward trend in Dipotassium EDTA pricing during this quarter. Despite tingly, despite any significant impact from plant shutdowns, the pricing dynamics remained relatively stable throughout the quarter.
It is notable that while the first and second halves of the quarter did not exhibit substantial variations in pricing trends, the price for Dipotassium EDTA 98% Ex-Vadodara in India was reported at USD 2830/MT at the beginning of the quarter. This marked a quarterly decline of 2.6%, signifying a relatively stable conclusion to the quarter.
Europe
During this timeframe, there were notable price fluctuations in the market, indicating a consistent downward trajectory throughout the quarter. Initially, prices were increasing due to strong demand for Dipotassium EDTA, prompting manufacturers to expand their production capacities. However, this resulted in higher production costs and elevated product prices.
As February progressed, prices started to decline due to excessive stockpiling by domestic manufacturers and local suppliers. Concurrently, there was weak demand in downstream industries and reduced import opportunities both domestically and internationally. This led to pressure on existing inventories in exporting countries. To address this oversupply, market players in exporting regions adjusted prices downward, with the European market following suit to stay competitive.
Moving into March, there were further developments such as decreased freight charges, contributing to a subdued and consolidated market environment. Additionally, there was a significant decrease in raw material prices, leading to lower manufacturing costs for Dipotassium EDTA. Despite these positive factors, manufacturers observed that procurement volumes from downstream industries did not show significant improvement, causing concern within the market.
For the Quarter Ending December 2023
North America
In the last quarter of 2023, the Dipotassium EDTA market in North America underwent price fluctuations primarily linked to a noticeable decrease in overall demand for Dipotassium EDTA during this period. This decline in demand resulted in a subsequent reduction in market prices, which persisted across downstream industries throughout Q4 2023.
Additionally, weakened import prospects and declining international market demand exerted added pressure on existing inventories, leading to an overall fragility and consolidation of the domestic market. The negative market outlook was further compounded by the year-end destocking phenomenon. Prior to year-end inventory adjustments, buyers globally were actively destocking their inventories at lower costs, thereby exerting downward pressure on prices.
Furthermore, the market for the raw material EDTA experienced a significant decline, lacking substantial cost support. Consequently, the market for Dipotassium EDTA mirrored this trend. Trading entities downstream exercised caution, and manufacturers gradually adjusted purchase prices after completing acquisition tasks. Given North America's status as a major importer, the region aligned its trajectory with exporting nations to maintain competitiveness in the market.
Asia
During the fourth quarter of 2023, the Dipotassium EDTA market in the Asia-Pacific (APAC) region underwent notable changes that impacted pricing dynamics. The overall landscape was marked by diminished demand, excessive inventory accumulation, and heightened competition, resulting in a downward trend in prices. Specifically, the current market price for Dipotassium EDTA 98% Ex-Vadodara in India stands at USD 3063/MT, reflecting an average quarterly decrease of 9.63%. The market faced constrained progress, characterized by minimal growth and weak demand from downstream industries. This was attributed to substantial stockpiling by domestic manufacturers and local suppliers, leading to a hesitancy in placing substantial orders. Moreover, diminished export opportunities and waning international demand exerted additional pressure on existing inventories, contributing to the overall fragility and consolidation of the market. Upon conducting a country-specific analysis, it was observed that India witnessed a decline in Dipotassium EDTA prices during the fourth quarter. The Indian market exhibited instability and low demand, resulting in price depreciation. Abundant market volume of the raw material, corn starch, further suppressed prices. Additionally, the influx of generic versions of Dipotassium EDTA through imports heightened competition in the Indian market. In terms of price trends, the current quarter displayed a depreciation compared to the preceding quarter, reflecting the prevailing market conditions.
Europe
In the final quarter of 2023, the Dipotassium EDTA market in Europe witnessed fluctuations in pricing, primarily attributed to a notable decline in overall demand for Dipotassium EDTA during this period. This reduction in demand led to a subsequent decrease in market prices. The diminished demand for Dipotassium EDTA persisted across downstream industries throughout Q4 2023. Furthermore, the weakened import prospects and declining international market demand exerted additional pressure on existing inventories, contributing to an overall fragility and consolidation of the domestic market. Adding to the negative market outlook was the year-end destocking phenomenon. Before year-end inventory adjustments, buyers were actively destocking their inventories globally at lower costs, putting downward pressure on prices. Moreover, the market for raw material EDTA experienced a significant decline, lacking substantial cost support, and consequently, the market for Dipotassium EDTA mirrored this trend. Trading entities downstream exercised caution, and manufacturers gradually adjusted purchase prices following the completion of acquisition tasks. Additionally, given Europe's status as a major importer, the region aligned its trajectory with exporting nations to uphold competitiveness in the market.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the US Dipotassium EDTA market witnessed a decline in pricing. This was primarily driven by a reduction in overall demand for Dipotassium EDTA during this period, leading to a decrease in market prices. Multiple factors played a role in this price decrease, including weakened demand from the food and beverage industry, a slowdown in demand from the oil and gas sector, and an increase in the supply of Dipotassium EDTA. Additionally, as the principal importer of Dipotassium EDTA, US prices were influenced by the falling prices in exporting countries. Moreover, recent developments in trade, coupled with a significant reduction in sea freight and ease in port congestion, have contributed to cost reductions that have affected market dynamics. The availability of domestic supply and reduced demand in both domestic and international markets exerted downward pressure on Dipotassium EDTA prices. The global economic slowdown has prompted market participants to be cautious in placing bulk orders, and speculators are actively trading Dipotassium EDTA futures in anticipation of further price declines, which has also played a role in the overall price reduction.
Asia
In the third quarter of 2023, the Asia-Pacific market for Dipotassium EDTA experienced an overall decline. The market saw stable price increases in July due to consistent demand from downstream industries. Although demand was mixed, buyers maintained small inventories of standard-sized materials with quick delivery options. Demand from downstream sectors grew as sales streamlined and improved in the spot market. However, in August, prices started to decrease. During this period, Indian suppliers faced challenges in exporting due to uncertain economic conditions in China and the USA, significantly impacting global trade and reducing market optimism. Additionally, suppliers had significant Dipotassium EDTA stockpiles, which led to price adjustments aimed at expediting product turnover. Some market participants reduced their inventories to improve cash flow, further reducing the price. The Purchasing Managers' Index (PMI) for the Indian manufacturing sector in Q3 2023 was 57.5, indicating continued expansion but slower than the previous quarter. This slowdown was attributed to a decrease in new orders and output. By the end of Q3, Dipotassium EDTA prices were recorded at USD 4212.68 per metric ton, reflecting a quarterly average decline of 3.06%.
Europe
In the third quarter of 2023, the European market for Dipotassium EDTA experienced price fluctuations. This was primarily due to a decrease in overall demand for Dipotassium EDTA during this period, reducing market prices. Several factors contributed to this decline, including weakened demand from the food and beverage industry, a slowdown in demand from the oil and gas sector, and an increase in the supply of Dipotassium EDTA. Furthermore, as the major importer of Dipotassium EDTA, European prices were affected by the declining prices in exporting countries. Additionally, recent developments in tariffs between China and Europe, along with a significant reduction in sea freight congestion, have played a role in influencing the market position by reducing costs. The availability of domestic supply and reduced demand in both domestic and international markets also exerted downward pressure on Dipotassium EDTA prices. The global economic slowdown led market participants to refrain from placing bulk orders, and speculators are actively selling Dipotassium EDTA futures in anticipation of future price declines, further contributing to the overall price decrease.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Dipotassium EDTA prices in the US market showed volatility in price developments. Overall, prices fell significantly, but the last months of Q2 2023 showed signs of easing market conditions. Due to sporadic fluctuations between supply and demand throughout the month. Market trading fundamentals were impacted by weak demand and high inventories. Retailers also struggled with the bloating of inventory they ordered to meet the surge in demand during the epidemic, despite stagnant demand. Energy costs have also fallen in recent months, reflecting a slowdown in the global economy, and falling oil prices have further supported the downtrend in Dipotassium EDTA. In late June, Dipotassium EDTA prices rose in the US market, mainly due to increased demand. Challenges such as rising interest rates, rising costs of living, and declining personal household savings will slow the economic upswing in the coming months. Weakness in foreign demand can be seen in various fields.
APAC
The Asia-Pacific Dipotassium EDTA market showed a mixed trajectory in Q2 2023. The price as of the end of Q2 2023 was valued and corresponds to a quarterly average incline of 0.01%. The market for Dipotassium EDTA API observed a stable inclination in the price trajectory. The fact that local retailers had enough stock on their shelves contributed to the stable market situation for Dipotassium EDTA. Also, the production cost at the commencement of Q2 2023, was witnessed to be on the lower side as domestic Raw material formaldehyde and the Caustic potash market was operating to be weak and consolidated. A decrease in supply, accompanied by enough inventories among the suppliers kept the market weak. Later, In June, the price of Dipotassium EDTA in India's nutraceutical industry began to rise. This was due to several factors, including increased demand from end-users and limited supply from suppliers. Suppliers were able to raise their prices because they knew that there was a limited supply of Dipotassium EDTA available. Also, the country's major ports handled a record-breaking cargo volume of 795 million metric tonnes, up 10% from the previous year. This was driven by strong growth in both exports and imports.
Europe
Overall demand for Dipotassium EDTA declined in the second quarter of 2023, leading to lower market prices. Weak demand from the food and beverage industry, slowing demand from the oil and gas sector, and increased supply were some of the factors that kept the market down. German Dipotassium EDTA prices fell in April due to lower raw material imports from exporting countries such as China and chronically weak demand from downstream industries. In addition, tariffs between China and Europe have recently returned to pre-pandemic levels and congestion has eased significantly, lowering sea freight costs, both of which are impacting the company's position. The availability of domestic supply and lower demand in domestic and international markets impacted commodity prices. Increased production capacity in India, the world's largest Dipotassium EDTA producer increased the supply of Dipotassium EDTA. This has increased the supply of Dipotassium EDTA in the global market. However, the slowdown in the global economy has reduced demand for Dipotassium EDTA. Speculators are also selling Dipotassium EDTA futures in anticipation of future price declines, which is also putting downward pressure on prices.
For the Quarter Ending March 2023
North America
The price of Dipotassium EDTA CFR in New York decreased from January to March 2023 as a result of the prolonged market volatility in the USA. Dipotassium EDTA imports from China were capped during the first week of January due to the country's Golden Week. Domestic providers were able to meet the total demand thanks to their large stocks, and offtakes in the end-user industries were stable throughout the quarter. Due to weather issues, Russia's turmoil in Ukraine, and China's Covid lockdowns, supply chains were dangerous for the majority of the quarter. However, when the economy started to expand in the second part of the year, there was a steady improvement, and the ports experienced a considerable decline in ship backlogs following a protracted port backlog.
Asia Pacific
Dipotassium EDTA prices in China showed a decreasing price trend during the first quarter of 2023 in the Asia Pacific region, with Ex-Vadodara values falling from $5084.29/MT to $4626.37/MT from January to March. Due to the closure of manufacturing facilities for the spring festival, Dipotassium EDTA orders in China decreased steadily during the first week of October. Chinese traders had to deal with a variety of conflicting signals following a one-week hiatus, making it difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q1. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand. The administration amended its zero-covid rules in response to criticism and significant unrest in the nation, which once more left the nation exposed.
Europe
In Europe, Dipotassium EDTA prices showed a downward tendency in the first quarter of 2023, with CFR Hamburg values dropping from January to March. Demand in Germany remained on the weaker side throughout the quarter, which made it difficult for the pharmaceutical and nutraceutical industries to plan ahead and stay afloat. This was in addition to rising energy and raw material prices. Despite growing energy prices and supply-chain concerns, Germany's industrial production barely increased in January. However, the circumstances in the instances involving Russia and Ukraine all continued to impact the state of the market in general negatively.
