For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Glycerine market experienced a significant increase in prices, driven by strong global demand, persistent supply chain disruptions, and escalating production costs. Compared to the previous quarter, prices rose by 2%, reflecting sustained positive momentum. This upward trend indicates a favorable pricing environment characterized by robust demand and supply constraints. The consistent increase in prices throughout the quarter suggests potential for continued growth in the Glycerine sector.
Despite upward pressures, U.S. exports have outperformed expectations, leading to temporary supply constraints. Factors such as plant shutdowns, low inventory levels, and a critical shortage of shipping containers in northern regions of the U.S. have complicated the supply situation. Additionally, geopolitical tensions in the Red Sea and Gulf of Aden have strained vessel capacity and disrupted established shipping routes.
These conditions—tight supply scenarios and logistical challenges—have intensified pressure on shipping vessels and container availability, potentially leading to supply bottlenecks and higher transportation costs. Rising raw material costs, particularly for palm oil in producing regions, have inflated production expenses, compelling manufacturers to adjust their pricing strategies.
Asia Pacific
Throughout the third quarter of 2024, the Glycerine market in the APAC region experienced a pronounced upward trend in prices, influenced by escalating global demand, persistent supply chain disruptions, and rising production costs. Notably, China experienced significant price fluctuations, reflecting broader trends across the industry.
In July, Crude Glycerine prices surged due to intensified demand from domestic and international markets, compounded by scheduled plant maintenance and stockpiling in anticipation of the monsoon season. Refined Glycerine prices also rose, driven by increasing production costs related to energy price hikes and raw material expenses, particularly for palm oil. August saw continued upward momentum, with substantial weekly increases in prices. By the end of the month, Crude Glycerine prices had risen sharply, fueled by supply shortages linked to geopolitical tensions and proactive stockpiling strategies. The anticipated spike in consumption due to the monsoon further supported these trends.
The economic landscape in China presented challenges for the manufacturing sector, as indicated by a stagnant Purchasing Managers' Index (PMI) of 49.5 in June. While there were positive indicators, such as improved export orders, logistical issues—particularly port congestion and container shortages—complicated trading sentiment. Despite these challenges, the demand outlook remained optimistic, bolstered by robust export growth driven by international market needs. In contrast, the supply outlook faced constraints from declining stock levels and increasing freight costs, impacting Glycerine prices. Concluding Q3, China reported a price of USD 383/MT for Crude Glycerine 80% CFR Shanghai, indicating a stable pricing environment. This trend underscores the importance of adaptability in a fluctuating economic landscape.
Europe
The third quarter of 2024 witnessed a significant increase in Glycerine prices across the European region, influenced by key factors such as supply chain disruptions and rising raw material costs. Reduced vessel traffic and port congestion in major production hubs have led to erratic shipping schedules and regional container shortages, constraining the global Glycerine supply. The rising costs of palm oil have inflated production expenses, compelling manufacturers to implement price adjustments. Additionally, robust demand from downstream industries such as personal care, pharmaceuticals, and food has driven increased procurement activities both domestically and internationally.
In Germany, the Glycerine market experienced pronounced price fluctuations during the third quarter, primarily reflecting upward trends linked to geopolitical tensions, seasonal demand, and ongoing supply challenges. At the beginning of July, the price of Refined Glycerine USP 99.5% CFR Hamburg rose, while Crude Glycerine 80% FOB Hamburg remained stable. This increase was largely attributed to cargo shortages arising from geopolitical issues and heightened demand from domestic and international markets. Anticipating increased demand related to the monsoon season, market participants engaged in proactive stockpiling, influencing price dynamics.
Supply challenges intensified, fueled by limited inventory levels and inflationary pressures on production costs. This upward momentum continued into the second week of August, where sustained demand across various sectors—including personal care and pharmaceuticals—coupled with persistent supply chain disruptions, further supported price increases. Overall, the Glycerine market in Germany during the third quarter of 2024 was characterized by robust demand amidst rising prices, with market participants effectively adapting to fluctuating dynamics while navigating the complexities of global supply chains.
MEA
In the third quarter of 2024, the Glycerine market in the Middle East and Africa (MEA) region experienced a notable upward trend in prices, driven by strong demand from both local and international markets and supply constraints. Rising crude oil prices, ongoing geopolitical tensions, and increasing global supply chain costs further intensified the price escalation. Additionally, low global inventories and heightened demand ahead of seasonal closures and festivals contributed to increased market activity. The surge in palm oil prices—a critical input for Glycerine production—also played a vital role in this price increase.
Saudi Arabia, a dominant player in the Glycerine market, leveraged these dynamics to enhance its export potential. Throughout the quarter, Saudi Arabia witnessed pronounced price changes, showcasing a resilient market where prices consistently climbed. Reduced raw material production and rising freight charges particularly impacted the Saudi Arabian market. Domestic producers capitalized on these conditions by raising prices and exploiting arbitrage opportunities, creating additional pressures for importers and consumers. Compared to the same period last year, the quarter reflected a 6% increase in prices, underscoring a robust upward trend.
By the end of Q3 2024, Glycerine prices in Saudi Arabia settled at USD 943/MT CFR Jeddah, emphasizing the positive pricing environment observed throughout the quarter.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Glycerine market experienced notable price declines, influenced predominantly by an oversupply and weakened demand across the region. The market faced substantial downward pressure as increased production levels from major manufacturing nations flooded the market with excess Glycerine, resulting in a supply glut. Additionally, logistical disruptions and elevated freight costs further exacerbated the situation, contributing to higher inventory levels and subsequently driving prices down. The escalating input costs, particularly from rising energy prices, have also played a significant role in the downward trend, as producers sought to cut down their expenses amidst an unfavorable economic landscape.
Focusing on the United States, which witnessed the most pronounced price changes, the quarter was marked by a steady decline in Glycerine prices. Seasonal factors, including the onset of the monsoon season, led to anticipatory stockpiling, yet the overall demand remained subdued. The Glycerine market showed a negative trend, with a -11% change compared to the same quarter last year and a -6% decline from the previous quarter in 2024.
The quarter-ending price for crude Glycerine 80% FOB Houston stood at USD 265/MT, reflecting a pervasive negative sentiment in the pricing environment. The cumulative effect of these factors has reinforced a consistent decrease in Glycerine prices, underscoring the challenges faced by the market in maintaining stability amidst fluctuating supply-demand dynamics.
APAC
The second quarter of 2024 witnessed a pronounced decline in Glycerine prices across the APAC region, driven by a myriad of complex factors. Predominantly, an overabundance of Glycerine inventory, stemming from previous bulk acquisitions in anticipation of heightened demand, catalyzed a significant oversupply scenario. This glut, in conjunction with stagnating consumer confidence due to inflationary pressures, curbed purchasing activities and suppressed market sentiment. Rising production costs, particularly soaring energy expenses, further exacerbated the pricing environment, intensifying the downward pressure on Glycerine prices.
Focusing on South Korea, the market experienced the most substantial price adjustments within the region. Glycerine prices in South Korea plummeted a marked decline of 4% from the preceding quarter in 2024. Seasonal factors, including decreased industrial activity during peak summer heatwaves, contributed to this trend, underscoring the stark correlation between seasonality and price shifts. The quarter concluded with the price of Glycerine Refined USP 99.5% CFR Busan settling at USD 720/MT. This consistent decline reflects a predominantly negative pricing environment, with market dynamics heavily influenced by oversupply, subdued demand, and escalating costs, culminating in a challenging quarter for Glycerine stakeholders in South Korea.
Europe
In Q2 2024, the Glycerine market in the Europe region has faced a consistent downward trend in pricing, driven by several significant factors that have exerted downward pressure on market prices. The primary reasons include an oversupply of Glycerine resulting from substantial inventories accumulated in previous months. This oversupply, coupled with reduced purchasing activities and weakened consumer trust amidst inflationary pressures, has led to a subdued demand across various sectors. Furthermore, reduced production costs in major manufacturing countries have allowed for more competitive offerings, prompting buyers to delay purchases in anticipation of better pricing. Companies have also been liquidating accumulated stock to avoid storage costs and mitigate risks of product deterioration, further flooding the market with excess supply and driving prices down.
Focusing on Germany, the country has experienced the most significant price changes within the region. The overall trend has been a steady decline in Glycerine prices, influenced by seasonality and the broader economic context. The correlation between market sentiment and price changes is evident, with the market's bearish outlook reinforcing the price decreases. Compared to the same quarter last year, Glycerine prices have dropped by 5%, while the decline from the previous quarter in 2024 is also recorded at 5%.
The latest quarter-ending price for Crude Glycerine 80% FOB Hamburg in Germany is USD 335/MT. This consistent downward pricing trajectory reflects a negative sentiment in the market, underscoring the challenges faced by the Glycerine industry in navigating oversupply and subdued demand amid economic uncertainties.
MEA
The second quarter of 2024 witnessed a consistent decline in Glycerine prices across the MEA region, driven primarily by an imbalance between supply and demand. A significant surplus of existing inventories, previously bulk procured in anticipation of higher demand, combined with subdued purchasing activities and weakened consumer confidence amidst escalating inflationary pressures, substantially influenced this downward trend. Reduced input costs, notably in the Palm oil sector due to abundant inventories and weakened demand, further exacerbated the price decline. Additionally, improving geopolitical conditions that led to reduced freight charges impacted overall transportation costs and pricing within the region.
Turkey, in particular, experienced the most pronounced price changes, reflecting broader market dynamics. The country saw a notable year-over-year price drop of 21%, indicative of weakened global demand and increased local supply. Compared to the previous quarter in 2024, prices fell by 9%, signaling ongoing market adjustments and continued surplus management.
As of the quarter's end, the price of Glycerine Refined USP 99.5% CFR Izmir in Turkey settled at USD 1660/MT. This steady depreciation in prices highlights a predominantly negative pricing environment for the quarter, driven by persistent oversupply, reduced demand, and declining input costs, contributing to the overall bearish sentiment within the market.
For the Quarter Ending March 2024
North America
The North American Glycerine market in the fourth quarter of 2023 experienced significant influences on prices. Primarily, there was a notable decrease in refined glycerine prices due to surplus production and diminished demand from downstream industries. This surplus, along with falling raw material prices like palm oil, exerted downward pressure on glycerine prices. Global increases in shipping costs and supply chain disruptions also played a role in reducing prices. The factors contributing to this decline include ample inventories, a subdued demand outlook, and price reductions in major exporting countries. The principal raw material, palm oil, exhibited recent fragility, further complicating the situation. Additionally, downstream sectors, major consumers of glycerine, increasingly adopted a just-in-time purchasing approach.
By the beginning of November, Crude glycerine prices began to rise due to increased demand from the downstream sector. Reports indicate the possibility of OPEC+ extending and deepening production cuts due to concerns about global crude oil demand and member countries' desire for higher oil prices. Market assessments suggest Saudi Arabia may continue implementing additional production cuts, extending the voluntary policy of reducing production by 1 million barrels per day.
The price for Crude Glycerine 80% FOB Houston in the USA at the end of the quarter was USD 285/MT, with an average quarterly decline of 0.31%. For Glycerine Refined USP 99.5% DEL Illinois in the USA at the end of the quarter, it was USD 1570/MT, with an average quarterly decline of 1.14%.
Asia Pacific
The fourth quarter of 2023 posed challenges for Glycerine pricing in the APAC region. Various factors contributed to market dynamics and price fluctuations during this period. Initially, restricted Glycerine inventories in the region's low-end manufacturing units impacted the overall market, resulting in heightened demand and potential price shifts. Additionally, seasonal changes prompted increased international market demand, further impacting prices. Moreover, the prices of palm oil and other edible oils played a role in influencing Glycerine prices in the APAC region.
Specifically focusing on South Korea, the country underwent significant fluctuations in Glycerine prices during the quarter. It is crucial to highlight that the overall supply situation remained challenging, with merchants depleting their finished goods and addressing backlogs.
In summary, the APAC region faced a challenging quarter in Q4 2023 for Glycerine pricing, marked by limited inventories, seasonal variations, and the influence of palm oil and other edible oil prices on market dynamics. South Korea witnessed notable changes in Glycerine prices, exhibiting a downward trend compared to the previous quarter and a substantial decrease from the same quarter of the preceding year. The closing price for Glycerine Refined USP 99.5% CFR Busan in South Korea for the current quarter stands at USD 760/MT.
Europe
The European region faced challenges in Glycerine pricing during the fourth quarter of 2023, with various factors contributing to market dynamics and price fluctuations. At the beginning of Q4, prices experienced a decrease primarily influenced by a global decline, stemming from major exporting nations. Notably, Thailand, a significant Glycerine exporter, played a key role in this trend by dispatching a substantial volume of Glycerine, leading to considerable price reductions in importing regions like Thailand, Indonesia, and Malaysia. The decline in prices was linked to excess production, reduced demand, and a significant drop in raw material prices, particularly palm oil.
Local suppliers, grappling with surplus inventory challenges, showed hesitance in engaging in large-scale purchases, according to reports from multiple manufacturers. Germany, as an importing nation, mirrored the decline in Glycerine prices witnessed in major exporting countries. Towards the end of Q4, prices increased due to heightened demand from the downstream sector, driven by various factors. Improved customer confidence resulted in a noticeable uptick in consumer purchases of glycerine, contributing to a surge in demand. This increased demand puts pressure on existing supply chains, causing a ripple effect on prices.
Moreover, the ongoing winter season in Europe significantly boosted demand, providing additional cost support. The rising global cost of freight played a crucial role in influencing the market dynamics for glycerine in the UK. As a prominent importing region, the UK found itself reflecting the pricing trajectory of major exporting countries. The closing price for Glycerine Refined USP 99.5% CFR Southampton for the current quarter is USD 1855/MT, with an average quarterly decline of 0.91%.
MEA
In the fourth quarter of 2023, the Glycerine market in the Middle East and Africa (MEA) region was influenced by several notable factors. Primarily, there was a slight price increase attributable to heightened seasonal demand, especially with winter approaching. This resulted in downstream industries, significant consumers of Glycerine, increasing their purchasing frequency. Furthermore, the market conditions in Saudi Arabia, the largest market in the region, improved due to heightened demand and limited inventories. The robust performance of the Saudi economy, supported by higher oil prices and the successful listing of Saudi Aramco shares, also contributed to this positive market situation.
However, towards the end of Q4, prices experienced a decline due to reduced international market demand. Foreign offtakes negatively impacted exports, leading to a rise in domestic inventories. As a consequence, market players chose to lower prices to deplete existing inventories and make room for fresh stock later. During this period, the prices of the raw material, Palm Oil, also saw a decrease in Indonesia.
In summary, the Glycerine market in the MEA region, particularly in Saudi Arabia, exhibited a positive price trend during the fourth quarter of 2023. The closing price for Glycerine CFR Jeddah in Saudi Arabia at the quarter's end was USD 900/MT, with an average quarterly incline of 0.05%.
For the Quarter Ending December 2023
North America:
The North American Glycerine market in the fourth quarter of 2023 experienced significant influences on prices. Primarily, there was a notable decrease in refined glycerine prices due to surplus production and diminished demand from downstream industries. This surplus, along with falling raw material prices like palm oil, exerted downward pressure on glycerine prices. Global increases in shipping costs and supply chain disruptions also played a role in reducing prices. The factors contributing to this decline include ample inventories, a subdued demand outlook, and price reductions in major exporting countries. The principal raw material, palm oil, exhibited recent fragility, further complicating the situation. Additionally, downstream sectors, major consumers of glycerine, increasingly adopted a just-in-time purchasing approach.
By the beginning of November, Crude glycerine prices began to rise due to increased demand from the downstream sector. Reports indicate the possibility of OPEC+ extending and deepening production cuts due to concerns about global crude oil demand and member countries' desire for higher oil prices. Market assessments suggest Saudi Arabia may continue implementing additional production cuts, extending the voluntary policy of reducing production by 1 million barrels per day.
The price for Crude Glycerine 80% FOB Houston in the USA at the end of the quarter was USD 285/MT, with an average quarterly decline of 0.31%. For Glycerine Refined USP 99.5% DEL Illinois in the USA at the end of the quarter, it was USD 1570/MT, with an average quarterly decline of 1.14%.
Asia Pacific:
The fourth quarter of 2023 posed challenges for Glycerine pricing in the APAC region. Various factors contributed to market dynamics and price fluctuations during this period. Initially, restricted Glycerine inventories in the region's low-end manufacturing units impacted the overall market, resulting in heightened demand and potential price shifts. Additionally, seasonal changes prompted increased international market demand, further impacting prices. Moreover, the prices of palm oil and other edible oils played a role in influencing Glycerine prices in the APAC region.
Specifically focusing on South Korea, the country underwent significant fluctuations in Glycerine prices during the quarter. It is crucial to highlight that the overall supply situation remained challenging, with merchants depleting their finished goods and addressing backlogs.
In summary, the APAC region faced a challenging quarter in Q4 2023 for Glycerine pricing, marked by limited inventories, seasonal variations, and the influence of palm oil and other edible oil prices on market dynamics. South Korea witnessed notable changes in Glycerine prices, exhibiting a downward trend compared to the previous quarter and a substantial decrease from the same quarter of the preceding year. The closing price for Glycerine Refined USP 99.5% CFR Busan in South Korea for the current quarter stands at USD 760/MT.
Europe -
The European region faced challenges in Glycerine pricing during the fourth quarter of 2023, with various factors contributing to market dynamics and price fluctuations. At the beginning of Q4, prices experienced a decrease primarily influenced by a global decline, stemming from major exporting nations. Notably, Thailand, a significant Glycerine exporter, played a key role in this trend by dispatching a substantial volume of Glycerine, leading to considerable price reductions in importing regions like Thailand, Indonesia, and Malaysia. The decline in prices was linked to excess production, reduced demand, and a significant drop in raw material prices, particularly palm oil.
Local suppliers, grappling with surplus inventory challenges, showed hesitance in engaging in large-scale purchases, according to reports from multiple manufacturers. Germany, as an importing nation, mirrored the decline in Glycerine prices witnessed in major exporting countries. Towards the end of Q4, prices increased due to heightened demand from the downstream sector, driven by various factors. Improved customer confidence resulted in a noticeable uptick in consumer purchases of glycerine, contributing to a surge in demand. This increased demand puts pressure on existing supply chains, causing a ripple effect on prices.
Moreover, the ongoing winter season in Europe significantly boosted demand, providing additional cost support. The rising global cost of freight played a crucial role in influencing the market dynamics for glycerine in the UK. As a prominent importing region, the UK found itself reflecting the pricing trajectory of major exporting countries. The closing price for Glycerine Refined USP 99.5% CFR Southampton for the current quarter is USD 1855/MT, with an average quarterly decline of 0.91%.
MEA –
In the fourth quarter of 2023, the Glycerine market in the Middle East and Africa (MEA) region was influenced by several notable factors. Primarily, there was a slight price increase attributable to heightened seasonal demand, especially with winter approaching. This resulted in downstream industries, significant consumers of Glycerine, increasing their purchasing frequency. Furthermore, the market conditions in Saudi Arabia, the largest market in the region, improved due to heightened demand and limited inventories. The robust performance of the Saudi economy, supported by higher oil prices and the successful listing of Saudi Aramco shares, also contributed to this positive market situation.
However, towards the end of Q4, prices experienced a decline due to reduced international market demand. Foreign offtakes negatively impacted exports, leading to a rise in domestic inventories. As a consequence, market players chose to lower prices to deplete existing inventories and make room for fresh stock later. During this period, the prices of the raw material, Palm Oil, also saw a decrease in Indonesia.
In summary, the Glycerine market in the MEA region, particularly in Saudi Arabia, exhibited a positive price trend during the fourth quarter of 2023. The closing price for Glycerine CFR Jeddah in Saudi Arabia at the quarter's end was USD 900/MT, with an average quarterly incline of 0.05%.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, the North American Glycerine market experienced a substantial devaluation. Prices for Glycerine Refined USP 99.5% DEL Illinois (USA) decreased from $1875 per metric ton in July to $1625 per metric ton in September, while Crude Glycerine 80% FOB Houston (USA) saw a drop from $296 per metric ton in July to $290 per metric ton in September. This decline, with an average quarterly decrease of 4.15% and 1.58%, respectively, was primarily triggered by a global surplus of Glycerine, which had a profound impact on its market worth. To address this challenge and mitigate potential losses, local traders strategically opted to reduce their price quotations, contributing to a more widespread decline in the market's value. The significant reduction in Glycerine prices can be attributed to a notable decrease in the cost of its primary raw material, Palm oil. This shift had a significant effect on the overall production cost of Glycerine in exporting nations, resulting in lower prices. The prices of the raw material Palm oil also saw a further decrease due to favorable weather conditions and ample rainfall in the regions where Palm harvests were exceptionally successful, supporting this trend. Furthermore, due to the substantial price reductions in exporting countries like Indonesia and Malaysia, which are significant competitors, US market participants also significantly lowered their prices. Consequently, this reduction in Glycerine prices reflects broader global market dynamics.
Asia Pacific
In the third quarter of 2023, the Glycerine market has witnessed a significant and favorable shift. Prices declined from $ 625 per metric ton in July to $610 per metric ton in September for Glycerine Refined USP 99.5% FOB Jawa Barat and $ 280 per metric ton in July to $ 260 per metric ton in September for Crude Glycerine 80% FOB Tanjung Priok in Indonesia. This price fluctuation indicated a significant change, resulting in an average quarterly drop of 2.55% and 1.53%, respectively. The recent drop in glycerin prices can be primarily attributed to the seasonal deceleration observed in the manufacturing sector, a vital consumer of Glycerine in Indonesia. During the summer months, the manufacturing sector traditionally experiences a reduced level of activity, leading to a decreased demand for Glycerine and, subsequently, a decline in its prices. Furthermore, the glycerine market reacted to a dip in crude oil prices in July 2023, reducing production costs since Glycerine is an incidental byproduct of biodiesel production closely linked to crude oil prices. In the midst of these changes, palm oil, another key raw material, is undergoing an increase in production cycle, with futures prices on the decline due to flat terminal demand and high-temperature weather impacts which also influenced the glycerine market. However, in the middle of Q3, prices for both refined and crude Glycerine saw an increase, fueled by rising palm oil prices as terminal oil demand improved and the palm oil market rebounded. Nevertheless, the glycerine market has since witnessed a retreat in prices in major exporting countries' domestic markets.
Europe
In the third quarter of 2023, there was a significant change in the pricing of Glycerine. The price of Glycerine Refined FOB Antwerp (Belgium) dropped from $1940 per metric ton in July to $1775 per metric ton by September, indicating a noteworthy quarterly decrease of 3.40%. Similarly, the prices for another grade, Crude Glycerine 80% FOB Algeciras (Spain), increased from $382 per metric ton to $375 per metric ton, with a modest quarterly rise of 0.15%. This shift in prices was mainly driven by a global oversupply of Glycerine, which had a profound impact on its market value. To address this challenge and mitigate potential losses, domestic traders strategically chose to lower their price quotes, contributing to a broader decrease in the market's value. The significant drop in Glycerine prices can be attributed to a notable reduction in the cost of its primary raw material, Palm oil. This change had a significant impact on the overall manufacturing cost of Glycerine in exporting countries, leading to lower prices. Furthermore, the European market, a major palm oil importer, closely followed the pricing trend set by leading palm oil exporters, Indonesia and Malaysia. As a result, this decrease in Glycerine prices reflects broader global market dynamics. In contrast, the prices in Spain initially increased during the first two months of the third quarter due to higher crude Glycerine prices, driven by increased production costs and rising energy prices. However, at the start of the third quarter, prices dropped as a result of sufficient crude Glycerine inventories and decreased demand from both domestic and international markets.
MEA
In the third quarter of 2023, there has been a notable and positive change in the Glycerine market. Prices for Glycerine CFR Jeddah (Saudi Arabia) dropped from $1010 per metric ton in July to $900 per metric ton in September. This decline in prices averaged at 6.03% over the quarter. The combination of uncertain economic conditions and rising inflation has led to reduced demand for Glycerine in relevant industries. As a result, manufacturing has been scaled back, leading to increased stockpiles and lower prices. It's important to highlight that the costs of key raw materials for Glycerine production, like palm oil and other edible oils, have also recently decreased. This cost reduction has further lowered production expenses, contributing to the downward pressure on Glycerine prices. Furthermore, the presence of existing stock inventories and abundant supplies has weakened the market situation. The prices of the raw material, palm oil, have also decreased due to favorable weather conditions and ample rainfall in regions where palm harvests have been exceptionally successful, supporting this trend. Additionally, due to substantial price reductions in exporting countries like Indonesia and Malaysia, which are significant competitors, South American market participants have significantly lowered their prices. Consequently, this decrease in Glycerine prices reflects broader dynamics in the global market.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Glycerine prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. The price was valued at the end of Q2 2023, representing an average quarterly decline of 1.53%. At the beginning of Q2 2023, Prices for Glycerine in the United States have increased by more than 1% as merchant stockpiles have shrunk, and the downstream demand has significantly increased. Additionally, according to market analysts, with the commencement of the new quarter Q2 2023, inventory replenishment activities with fresh stock kept the market robust. Later from the second month of Q2, Due to the imbalance between supply and demand, Glycerine prices in the US market declined significantly during this quarter. Due to exceptionally low offtakes in the end-user industries, domestic suppliers have an abundance of Glycerine in warehouses, which results in continually lowering costs in the home market. Furthermore, the prices of raw materials used to produce Glycerine, such as palm oil and other edible oil, have fallen recently. This also contributed to the price drop. The biggest drop in US producer prices since the pandemic's beginning was caused by lower gas prices, which served to ease inflationary pressures. The cost of energy, which is a major input cost for soda ash production, has declined in recent months, due to the slowdown in the global economy and the decline in the price of oil further supported the lower trajectory of Glycerine.
Asia
The market price of Glycerine in the second quarter of 2023 witnessed fluctuating trajectory. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 0.77%. In the Indonesian market, the glycerine market showed a considerable increase in the price trajectory. Increased edible oil mainly palm oil prices in the Indonesian market on the back of increased demand and labor shortage due to the Islamic month of Ramadan. Indonesia, the world's top exporter of glycerine and the largest producer of palm oil tightened trading laws this year. Indonesia is also a major producer of glycerine, and several factories in the country have been operating at reduced capacity due to labor shortages. With energy prices skyrocketing throughout the world, Indonesia, the largest producer of palm oil, increased the required percentage of palm oil in biodiesel from 30% to 35% starting in February which automatically increase its demand. This move was made to cut imports of diesel fuel and lower emissions. In the mid of Q2, the demand for glycerine has been weak in recent months, due to the COVID-19 pandemic and the war in Ukraine. The COVID-19 pandemic has led to a decline in demand for several products that use glycerine, such as cosmetics and pharmaceuticals. Also, enough inventories among the suppliers are likely to keep the market feeble.
Europe
In the second quarter of 2023, glycerine witnessed an overall appreciating pricing trend. Glycerine prices stably incline by an average quarterly inclination of 0.21%. The fundamentals of the market suggested that increased domestic demand was the primary factor driving up glycerine prices in April. New output in the exporting countries in response to growing demand and high energy prices is probably what will drive the market in Germany. Price hikes for palm oil that is suitable for human consumption and animal feed would affect the glycerine industry. Later, the market for Glycerine continued to be unfavorable again in the month of June after a considerable fall the month before. Once more, the decline in end-user sector consumer demand and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Glycerine import prices. Also, the price of raw materials used to produce Glycerine API, such as palm oil and other edible oil, has been falling in recent months. This has also contributed to the decline in prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the Glycerine market observed price fluctuation in the North American region. Prices were witnessed to be on the lower end till the termination of the first month of Q1 2023 because of weak domestic seasonal demand, according to market fundamentals. The fact that domestic retailers had ample inventories also influenced the market scenario negatively. The slowing Glycerine market, brought on by falling feed palm oil and other edible oil prices, also affected the production cost. Weather forecasts for Belgium were milder than anticipated, and storage levels were at all-time highs. Later, with the commencement of the second month, the prices went stable. At the end of the first quarter, Glycerine values were accessed at USD 1925/MT with an average quarterly declination of 4.79%. Additionally, the oleochemical business is rising, and biodiesel output is increasing, both of which positively affect the Glycerine market situation.
Asia
The market prices for Glycerine relinquish significantly in the first quarter of 2023 as a result of a decline in seasonal demand from the downstream food, pharmaceutical, and healthcare industries. The prices were accessed at USD 650/MT FOB Jawa Barat (Indonesia) and USD 710/MT Fob Johor (Malaysia) at the termination of Q1 2023, with an average quarterly declination of 7.03% and 5.42%, respectively. The price trajectory for the feedstock edible oil, such as palm oil, also showed a sharp fall, which had a detrimental impact on the glycerine market. Also, domestic merchants had to drop their quotations to clear stock because the demand from the domestic market was lower than usual, and the volume of orders was lower than typical from the international market too. The downward trend of the feedstock palm oil and other edible oils also supported the Glycerine trajectory. Nonetheless, the prices were recorded to stabilize at the termination of Q1 2023, backed by static demand and enough inquiries from the overseas market.
Europe
In the first quarter of 2023, the prices for Glycerine in the European market showcased a Mixed trend. At the end of the first quarter of 2023, Glycerine values were accessed at USD 1880/MT CFR Hamburg with an average quarterly declination of 3.32%. Due to lackluster demand from the domestic market, the market fundamentals showed that Glycerine prices depreciated throughout January. The availability of sufficient inventories on the shelves of domestic merchants had combinedly impacted the market situation. Decreasing palm oil and edible oil (feed) prices additionally influenced the production cost keeping the Glycerine market feeble. With storage at record highs, Germany’s weather outlook was in a milder position than anticipated, which has somewhere supported the low offshore demand and prices of Glycerine. New production in the exporting countries in response to rising demand and high energy prices is likely to drive the market in Germany. Increased feed palm oil and edible oil prices will likely influence the Glycerine market. After following a consistent decline over the past few months, the prices of Glycerine are now gaining their normal trajectory in the German market.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, Glycerine market patterns witnessed fluctuation in North America. Prices were witnessed to increase till the second month of the quarter, starting with Q4 2022, because of the high cost of manufacturing, numerous logistical issues, and rising inflation. Rising transportation costs and port congestion at the key ports also helped to keep the market position strong. Additionally, the market benefited from the disarray in Glycerine production brought on by higher energy prices. Later in December, prices started to drop due to seasonal end-user sector demand. Additionally, the merchants' sufficient stockpiles in relation to demand kept the market weak. At the end of the fourth quarter, Glycerine values were accessed at USD 3080/MT with an average quarterly inclination of 0.35%.
Asia
The market prices of Glycerine in the fourth quarter of 2022 witnessed a substantial drop on the back of decreasing seasonal demand from the downstream pharmaceutical, food, and healthcare sector. The prices were evaluated and accessed at USD 1050/MT Fob Johor (Malaysia) and USD 920/MT FOB Jawa Barat (Indonesia) at the termination of Q4 2022, with an average quarterly declination of 14.95% and 15.92%, respectively. The raw material palm oil and other edible oil prices also showcased a significant decline in the price trajectory affecting the Glycerine market negatively with low input cost. Furthermore, the suppliers and domestic merchants also decide to recuperate the prices to the pre-pandemic level to maintain a stable market trend. Moreover, low demand on the back of unforeseen weather conditions across the globe caused orders from the downstream sector to shrink at a faster rate.
Europe
The prices for Glycerine in the European region showed a see-saw tendency in the fourth quarter of 2022. The supply chain was impacted by the continuous port congestion and supply disruption in the European region, which led to price increases in the first two months of Q4 2022. Glycerine trajectory was also affected by the high freight costs. Due to the impending holiday season, European retailers have decided to refill their inventory in order to meet demand and maintain the supply-demand equilibrium. Nevertheless, December sees a price decline as a result of rising in-built inventories and declining end-user sector demand. Also, the freight cost dropped significantly, affecting trading activities and keeping the market at ease. At the end of the fourth quarter of 2022, glycerine values were accessed at USD 3070/MT CFR Hamburg with an average quarterly inclination of 0.46%.
For the Quarter Ending September 2022
North America
During the third quarter of 2022, Glycerine witnessed an inclining price trajectory owing to increased feed palm oil and other edible oil prices due to geopolitical conflict and logistic issues. The cost of Glycerine hovers slightly on the higher side. Regardless of the firm demand from downstream pharmaceuticals, cosmetics, and food industries, the price increased marginally because of the inflated economy and currency fluctuation. Furthermore, incremented manufacturing costs and boosted raw material market sentiments also affected the prices of Glycerine in the North American region. At the termination of Q3 2022, the values accessed at USD 3020/MT with an average quarterly inclination of 1.54%.
Asia
In the third Quarter of 2022, Glycerine prices witnessed a plunging trajectory due to shrinking demand and ongoing geopolitical conflicts. At the commencement of the first half of Q3 2022, Glycerine prices decreased abruptly due to steady demand and existing inventories in the Asia Pacific region. The prices of raw material palm oil and other edible oil also witnessed a depreciating trajectory in the domestic market, affecting the prices of Glycerine. Further, the downstream end-user demand, along with low manufacturing rates and production costs, affected the prices of Glycerine. With the commencement of September, the domestic merchants started to stockpile the inventories for future demand. Increased raw material prices led to a slight increase in the price of Glycerine. At the termination of Q3 2022, the values accessed at USD 1135/MT with an average quarterly declination of 9.44%.
Europe
In the European market, Glycerine (Excipient) prices witnessed stable market sentiments with the values accessed at USD 2990/MT with an average quarterly inclination of 0.86%. Throughout the third quarter of 2022, feed palm oil and other edible oil prices were stable in the European market owing to low demand from end-user industries; the offtakes from the end-user sectors, pharmaceutical, food, and cosmetics, also play a part in the price hike of Glycerine. The plunging demand and adequate existing stock kept the glycerine market at ease. Also, the stable production rate and low manufacturing cost positively influenced the European market in Q3 2022.
For the Quarter Ending June 2022
North America
During the second quarter of 2022, Glycerine prices overall showcased a declining price trajectory. At the onset of the first half of Q2 2022, owing to increased feed benzoic acid prices due to geopolitical conflict and logistic issues, the cost of Glycerine rose slightly regardless of the stable demand from downstream pharmaceuticals, cosmetics, and food industries. With the termination of the first half of Q2 2022, the glycerine price declined gradually. The stunted demand from end-user industries and enough existing supplies prompted the glycerine prices to deceased. Furthermore, fallen-out manufacturing costs and falling raw material market sentiments also affected the prices of Glycerine in the North American region. At the termination of Q2 2022, the values accessed at USD 2885/MT with an average quarterly declination of 0.78%.
Asia
In the second Quarter of 2022, Glycerine witnessed a plunging price trajectory owing to shrinking demand and ongoing geopolitical conflicts. At the onset of the first half of Q2 2022, the Glycerine prices suddenly decreased due to steady demand and existing supplies in the Asia Pacific region. By the termination of the first half of Q2 2022, Glycerine witnessed a drastic plunge in the price trend, followed by the ease in raw material benzoic acid prices. Furthermore, the demand from downstream end-user industries decreased along with low manufacturing rates, and production costs affected the prices to be on the lower end. At the termination of Q2 2022, the values accessed at USD 1865/MT with an average quarterly declination of 5.39%.
Europe
In the European market, Glycerine (Excipient) prices were witnessed to soar with the values accessed at USD 2915/MT with an average quarterly inclination of 2.6%. The offtakes from the downstream sectors, such as pharmaceutical, food, and cosmetics, played a minor role in the price hike of Glycerine owing to low demand from end-user industries. At the commencement of the first half of Q2 2022, global feed benzoic acid prices were the primary factor for hiked-up prices in the European market. Regardless of the ongoing geopolitical conflict, the plunging demand and enough existing stock kept the glycerine market at ease. With the termination of the first half of Q2 2022, the prices went stable with the market's steady demand and supply.
For the Quarter Ending March 2022
North America
The prices of Glycerine observed an exponential growth of 10% in Q1 of 2022 when compared with Q4 of 2021 in the North America. The hiked prices were accompanied by the increasing prices of feed, palm, soy, and coconut oil along with its shortage in the regional market. Demand from downstream sectors such as pharmaceutical, food and personal healthcare became the driving forces leading to spike in the prices of Glycerine. Furthermore, manufacturers have been facing feed supply shortage from the suppliers, leading to higher production cost of Glycerine in the North American market showcasing its proportional effects on the prices of Glycerine. The prices of Glycerine in the US market landed at USD2812/ton, DEL Midwest, USA in the month of January and USD2955/ton, DEL Midwest towards the quarter ending March 2022.
Asia-Pacific
In the Asian market, the prices of Glycerine escalated approximately by 15% in Q1 of 2022 when compared with Q4 of 2021. The outburst of Omicron virus in China soared the demand of Glycerine in the pharmaceutical sectors, forcing the manufacturers to increase their production rate. These factors were accompanied by the spiked prices of feed corn as an ill effect of political tension between Russia and Ukraine. Hence, with the hiked prices of feed, the production cost of Ethanol also elevated leading to price hike towards the quarter end. The prices of Glycerine were quoted at USD2139/ton, CFR Shanghai, in January and USD2227/ton, CFR Shanghai, China in the month of March 2022.
Europe
In the European market, the prices of Glycerine were noted as USD2752/ton, CFR Hamburg in January and USD2835/ton, CFR Hamburg, Germany towards the quarter end of Q1 2022. The offtakes from the downstream sectors that is pharmaceutical, and cosmetics became the major factor for hiked prices in European market. When compared with Q4 of 2021, the prices of Glycerine in Q1 of 2022 have observed a hike of approximately 13%. European Glycerine manufacturers also faced the crisis of feed (corn) as the suppliers were unable to provide the feed due to trade route change, which led to high production cost of Glycerine.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the North American Glycerine market observed a bullish sentiment throughout the quarter. As the demand outlook from the downstream cosmetics, skincare, and pharmaceutical industries outstrip the supply capabilities of the regional producers. Whereas, the discovery of the new omicron variant of COVID 19 further induced support from the Pharmaceutical industries in the domestic market. In repercussion, the offers for Glycerine observed a persistent growth of approximately 10% on a quarter o quarter basis, and the DEL Midwest (USA) discussion was settled at USD 2641 per tonne., during the quarter ending December 2021.
Asia Pacific
Overall, the Glycerine market in the Asia Pacific region remained consolidated throughout the fourth quarter of 2021. This development is majorly attributed to the demand outlook from the domestic and overseas buyers which soared drastically after the discovery of the omicron variant of COVID-19. The inquiries from the downstream cosmetics and skincare industry exceeded the capabilities of the Southeast Asian producers. As the persistently soaring offers for Palm oil in the Asian market forced the producers to curtail the operational loads in the production facilities. As a ripple effect, the quotation for Glycerine USP 99.5% grade witnessed an exceptional growth of 28% in the Q4 of 2021, and FOB Johor (Malaysia) monthly average discussions were settled at USD 2055 per tonne in December 2021.
Europe
The European Glycerine market remained buoyed in the Q4 of 2021, due to the excessive demand that surpassed the domestic production capabilities amidst the ongoing energy crisis in the European region. The high charges of electricity forced numerous producers to reduce the operational rates, which further coupled with the high freight charges boost the sentiments of domestic suppliers to raise the quotations in the domestic market. in addition, the resurgence of COVID uplifted the demand outlook further, in response the CFR Hamburg discussions for Glycerine USP grade were settled at USD 2635 per tonne, in December.
For the Quarter Ending September 2021
North America
During Q3 of 2021, prices of all refined grades of Glycerine were assessed on an upward trend backed by the robust demand from the downstream sectors. Supply chain remained under pressure due to the shipping and logistic issues along with the continuous increase in freight charges and restricted availability of shipping containers which exerted pressure on both domestic producers as well as importers. Most expensive of the refined grade has been pharmaceutical grade which went through number of certifications and approvals and is available only in drums. In the mid of the quarter, prices of refined Tallow grade Glycerine were measured at USD 1749 per MT DEL Midwest.
Asia
In Asia, the demand for Glycerine gained stability during Q3 of 2021 after attaining immense heights in the previous quarter however the market sentiments continued to remain high. Furthermore, shipping delays continued to lay large over the oleochemicals market given the pandemic caused shutdowns and restrictions at critically important ports in South Asia. Malaysia, a key producer, curtailed its operating rates as Southeast Asian countries struggled to control resurgence in covid cases in their territories. Meanwhile, China remained an attractive destination for Glycerine sellers to minimize the losses due to shipping delays. Various taxes including export taxes on CPO were also reduced in Southeast Asia. In India, market remained largely stable with a tilt towards demand fundamentals, given the high applicability of Glycerine.
Europe
During the third quarter of 2021, the Glycerine market in Europe remained tight as the imports from Asia stayed impacted due to resolutely high freight and shipping charges as well as due to the congestion on several ports of China. Market also witnessed drop in biodiesel production however economic recovery due to successful vaccination kept the biodiesel demand up. The demand from key downstream sectors particularly cosmetics and detergent sectors remained robust for the material where crude Glycerine prices cross USD 695.10 per MT in European market. Inventories were remarked as short by various market participants while demand for the product continued to move upwards.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, Glycerine supplies in the North American region were improved comparatively from the previous quarter, as the industrial manufacturing ramped up in the US gulf region after facing the brunt of the winter storm-led disruptions. Increased volume of imports from the Latin America and Asia further supported the market supplies. Domestic suppliers confirmed spot availability for refined Glycerine and the buyers were willing to pay huge premiums to leverage pickup in demand trends. Demand was persistent from the downstream food and cosmetics industries, whereas the sentiments to replenish the inventories levels were strengthened ahead of upcoming hurricane season in the US Gulf region. As a ripple effect, the pricing trend observed a continuous up stride with FOB Ohio prices in June reaching USD 1325 per tonne for Glycerine 99.7% (Koshner Grade).
Asia Pacific
Glycerine prices in the Asia pacific region observed a multi fold hike in the offers owing to sturdy demand from the downstream industries and constrained production amidst shortages in the key feedstock chemicals. Due to limited availability of the feedstock, Glycerine production volumes reduced by certain margins in Indonesia. Whereas the demand was exceptional from the downstream pharmaceuticals and personal care sector to cope up with the surged offtakes from the hand sanitizers industries, as the second COVID wave severely impacted the Southeast Asian region in the first half of the quarter. Indian manufacturers held up the market fundamentals by increasing the offers by around 19.01% within Q2 with Ex-Works prices in June hovering around USD 1256 per tonne.
Europe
In the European region, Glycerine supplies showed improvement over the previous quarter, owing to better feedstock availability and production of biodiesel as the operational rates at manufacturing plants of the northwest European region restored with the better climatic conditions. Furthermore, supply side support was sought after the prolonged turnaround at one of the production facilities of OXEA Chemicals ended in the second half of the quarter, which improved the overall regional market outlook in Q2. Demand was resolute from the downstream pharmaceutical and personal care sector. Led by strong demand patterns, the CIF NWE Glycerine prices were assessed around USD 1134 per tonne in June.
For the Quarter Ending March 2021
North America
Supplies in the North American region were constrained during the first quarter of 2021. The tightness was owned to the production disruptions caused amidst severe freeze weather conditions in the USA gulf coast region. The rigorous weather forced shutdown of a major plant in the Bay City site with production capacity of 120,000 MT/year. The demand surged due to shortage in supplies and continuous offtakes from the downstream sectors. OQ chemicals surged the feedstock prices which proportionally surged the prices of Glycerin with a quarterly FOB average of USD 1150/ton in Texas.
Asia-Pacific (APAC)
Glycerin supplies in the APAC region were balanced-to-tight during the first quarter, amidst upstream shortage due to plant turnarounds during the Chinese Lunar New Year holidays. Furthermore, the imports of Glycerin were disrupted amid the Suez Canal blockage in the end of March. However, the situation seemed to balance out by the commissioning of new crackers in China. The demand surged as offtakes from the downstream pharma sector improved. Glycerin FOB Shanghai prices were hiked to USD 1180/ton due to high demand and global supply shortage in March.
Europe
During the first quarter of 2021, the supplies of Glycerin were tight in the European region, due to low Biodiesel production in the northwest European region as several refineries were operating at low rates. Glycerin shipment to the APAC region remained halted amid the Suez Canal blockage in late March. In Austria, a new 200,000 bpd Glycerin & Biodiesel plant has been proposed to be established in Schwechat refinery with an investment of USD 36.1 Million by 2022. The demand was balanced from the downstream sector, the average CFR prices in Hamburg of Glycerin were USD 630/ton.
For the Quarter Ending December 2020
North America
With the consistent increment in the prices of raw material, Glycerine prices in the US took an uptrend later in the quarter. Increment in the demand from the end user industries like personal care and health care boosted the market sentiments. Prices of the glycerine took an uptrend in the relevant quarter and also after the announcement of the formulation from World Health Organization (WHO) for making Glycerine based hand rub and sanitizers for the moisturization of the skin increased the demand for the Glycerine in the North American market. Rising Brent crude is further anticipated to support the price trend in the region at least till Q1 2021. In addition, a major biodiesel producer of US kept its plant shut throughout the quarter which also reduced the availability of Glycerine in the market.
Asia
Demand for Glycerine in the Asian market remained firm during Q4 2020. Pickup in demand in India during the festive season in November also contributed to a prominent surge in its values. The price for refined Glycerine in India for the quarter ending December 2020 was averaged around USD 880 per MT during the quarter. Global Green Chemicals (GGC), one of the major refined Glycerine manufacturer in Thailand revealed refined establishment of Glycerine manufacturing unit in December 2020. This new plant has a capacity of 20 KTPA will improve the supply of refined Glycerine in the APAC region. As the biodiesel and oleochemical sector is a major contributor in Glycerine production, significant downfall in these sectors resulted to tight supply of Glycerine in Asia.
Europe
Firm demand for Glycerine from the biodiesel and oleochemicals industry has sustained its rich market sentiments in Europe. As European Union is eyeing to reduce the imports of palm oil as it leads to increased deforestation activities, concerns of stressed availability of the feedstock has provided a forward push to the prices of Glycerine in the regional market. Due to second wave of COVID 19 and restricted movement across European region, supply of Glycerine got hampered. However, the plant utilization rates gradually improved under the optimism that prevailed from the consistent upward push in the crude values.
