For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American Glyoxal market experienced a notable decline in prices, with the United States witnessing the most significant fluctuations. This downward trend was influenced by a combination of factors, primarily stemming from subdued demand in key industries, particularly construction. Seasonal factors and broader economic conditions played a critical role in dampening activity within the construction sector. Notably, since mid-August 2024, the region has been plagued by heavy rainfall and hurricanes, disrupting construction projects and further negatively impacting the demand for Glyoxal.
On the supply side, steady production rates from manufacturing facilities contributed to a consistent influx of Glyoxal into the market. This stable supply environment effectively countered the periodic dips in demand, resulting in a relatively balanced market situation.
The interplay between consistent supply and weakened demand culminated in a final price of USD 450 per metric ton for Glyoxal 40% DDP in Texas. This pricing reflects a persistently negative environment throughout the quarter, as market dynamics struggled to adjust to the challenges posed by weather-related disruptions and declining industrial demand.
APAC
In the third quarter of 2024, the Asia-Pacific (APAC) region faced a challenging landscape for Glyoxal pricing, marked by a notable decline in market prices. Several key factors contributed to this trend. A significant global oversupply of Glyoxal, driven by port congestion and diminished demand from crucial industries, played a central role in driving prices downward. The weakening demand from the construction sector, a primary consumer of Glyoxal, further intensified the downward pressure on pricing. Within China, the market experienced the most pronounced price fluctuations. The construction sector, a major consumer of Glyoxal, remained notably subdued due to adverse weather conditions, particularly typhoons that disrupted building activities and hampered demand. These disruptions led to a buildup of inventories, compounding the existing oversupply situation in the market. As a result, the overall pricing environment for Glyoxal in the region was characterized by negativity. By the end of the quarter, prices settled at USD 610 per metric ton for Glyoxal 40% FOB Shanghai.
Europe
In Q3 2024, European Glyoxal prices experienced a decline, primarily driven by subdued demand and ample inventories. Both domestically produced and imported Glyoxal were readily available, creating an oversupply in the market, which exerted significant downward pressure on prices. Key downstream industries, such as paints, coatings, and construction, exhibited lower-than-expected consumption levels, further compounding the market imbalance. As the quarter drew to a close, broader economic indicators reflected a mixed picture. The European Commission’s Economic Sentiment Indicator (ESI) remained relatively stable at 96.7 points in the EU, while dipping slightly by 0.3 points in the eurozone, reaching 96.2 points. Despite the overall decline in Glyoxal prices, the steadiness of the ESI suggests improved confidence within the construction sector and among consumers, hinting at a potential recovery in demand moving forward. However, this optimism was not yet strong enough to offset the impact of weak industrial demand on Glyoxal prices during Q3. The quarter concluded with Glyoxal 40% FOB Hamburg in Germany priced at USD 600/MT, reflecting a persistently bearish pricing environment marked by a continuous decrease in prices.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Glyoxal market experienced a consistent downward trend in pricing, driven by several significant factors. The ample availability of Glyoxal within the region, coupled with high port inventories and subdued demand from the downstream construction industry, played pivotal roles in exerting downward pressure on market prices. The inflationary environment further added to the complexities, impacting overall market sentiment and consumer purchasing power. Despite a generally robust economic backdrop, with moderate growth in the manufacturing sector, the Glyoxal market faced challenges due to the reduced rate of expansion and declining orders in both manufacturing and services sectors.
Focusing on the USA, where the most substantial price changes occurred, the overall trends reflected a bearish market sentiment. The seasonality factor, particularly the arrival of the monsoon season, contributed to the muted demand from the construction sector, further influencing the negative price trajectory. The correlation between these seasonal trends and the broader economic pressures was evident in the price movements throughout the quarter.
The quarter-ending price of USD 530/MT for Glyoxal 40% DDP Texas underscores the declining pricing environment. Comparing the first and second halves of the quarter, a notable price decrease of 2% was observed, with a -7% change from the previous quarter in 2024. This downward trend was exacerbated by disruptions, including the collapse of the Baltimore bridge, which affected supply dynamics. Overall, the pricing environment for Glyoxal in Q2 2024 was negative, with persistent downward pressure reflecting the challenging market conditions.
APAC
In Q2 2024, the Glyoxal market in the APAC region experienced a pronounced bearish trend, influenced by several key factors. Firstly, a significant decline in upstream crude oil prices, driven by inventory builds and a well-supplied Atlantic Basin market, dramatically reduced production costs for Glyoxal manufacturers. This was further compounded by a drop in the price of feedstock Ethylene Glycol, which created an excess supply within the market. Additionally, disruptions in the global freight industry, including increased rates and logistical challenges, led to higher shipping costs and added pressure on Glyoxal prices. The weak demand from downstream sectors, particularly the construction industry, exacerbated the situation, as ongoing geopolitical uncertainties and economic instability caused subdued consumption rates. In China, the Glyoxal market was particularly impacted, with the pricing environment reflecting a markedly negative sentiment. Seasonal factors, such as the onset of the monsoon season, led to lower construction activity, further dampening demand. Despite attempts to stabilize the market through financial credit support for key infrastructure projects, the Purchasing Managers' Index (PMI) for manufacturing showed a decline, indicating slower manufacturing growth. The overall trend was characterized by a sharp decrease in prices, with the average price in the second half of the quarter falling by 9% compared to the first half. This significant reduction highlights the persistent oversupply and weak demand dynamics. The quarter concluded with the Glyoxal 40% FOB Shanghai price at USD 620/MT, reflecting a consistent downward trajectory and underscoring the negative pricing environment in the APAC Glyoxal market for Q2 2024.
Europe
In Q2 2024, the European Glyoxal market experienced a pronounced upward trend, significantly influenced by heightened demand from the downstream construction sector and elevated global freight rates. The continuity of supply was maintained despite logistical challenges, with freight rates witnessing a notable surge, especially for shipments from Asia to Europe and North America. The chemical industry, reliant on timely shipments, faced increased costs due to these delays and higher freight charges. This quarter has been characterized by a bullish market sentiment, driven by the robust recovery of the construction industry and broader economic improvements across the region. Focusing on Germany, where the most significant price changes were observed, the market dynamics were particularly noteworthy. The country experienced a notable increase in Glyoxal prices, driven by the resilient demand from the construction sector. The seasonality factor played a crucial role, with the onset of favourable summer conditions bolstering construction activities and thereby increasing Glyoxal demand. The price escalation was further compounded by rising crude oil prices, influenced by supply cuts from OPEC countries, which affected the derivative markets and overall production costs. Comparing the first and second halves of the quarter, the latter displayed a marked price increase of 3%, reflecting the sustained demand and logistical constraints. Despite no plant shutdowns reported, the market's positive trajectory remained unimpeded by supply disruptions. Year-over-year analysis indicates a substantial percentage increase, underscoring the market's bullish sentiment. Quarter-over-quarter, the price change recorded a slight decline of 2% from Q1 2024, primarily due to the high base effect from the previous quarter's price surge. The quarter concluded with a Glyoxal price of USD 680/MT FOB Hamburg, demonstrating a consistent increasing sentiment and a positive pricing environment. This upward trend underscores the market's resilience and the strategic adjustments made by industry players to navigate logistical challenges and rising input costs.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Glyoxal in the North America region exhibited a predominantly positive trend, although with notable fluctuations in the USA market. Several factors influenced Glyoxal prices in the region during this period. The supply of Glyoxal was impacted by the ongoing Red Sea crises, which disrupted maritime traffic and contributed to increased inventories globally.
Despite cautious buying behaviour from European consumers, there was ample availability of the product in the market. The downstream construction industry maintained stable demand, which supported the overall market, although the manufacturing sector faced challenges with a downturn observed in segments like cement, paints & coatings, and textiles. In the USA market specifically, Glyoxal prices experienced significant fluctuations. Prices increased by 3.5% in January 2024 due to rising feedstock Ethylene Glycol prices and the impact of supply disruptions caused by the Red Sea crises.
Subsequently, in February 2024, prices surged by over 5% as upstream Crude Oil values rose amid expectations of interest rate cuts and supply concerns. Despite the bullish market sentiment, high-frequency economic indicators were affected by storms and cold weather, leading to setbacks in sectors such as retail sales and housing starts. Overall, the pricing environment for Glyoxal in Q1 2024 was positive, marked by fluctuations in the USA market driven by factors including feedstock costs, supply disruptions, and economic indicators. The quarter-ending price for Glyoxal 40% DDP Texas in the USA was recorded at USD 580/MT, reflecting the dynamics of the market during the period.
APAC
The Glyoxal market in the APAC region faced significant challenges during the first quarter of 2024, characterized by notable price fluctuations influenced by several factors. China, as the largest market for Glyoxal, experienced the most pronounced changes in prices. The market sentiment in China was predominantly bearish, driven by low demand and high supply dynamics. During the Chinese Lunar New Year festivities, demand further weakened as construction projects halted or slowed down temporarily. Moreover, logistical challenges and delays in customs clearance contributed to high Glyoxal inventory levels, particularly at ports, exacerbating the supply-demand imbalance. Overall, the Glyoxal market trend in the APAC region during Q1 2024 has been bearish, with prices on a declining trajectory due to subdued demand and ample product availability globally. The ongoing Red Sea crises added to supply chain disruptions, resulting in extended shipping times and increased freight costs. Seasonally, the first quarter typically witnesses a slowdown in the Glyoxal market due to winter holidays across the APAC region, further dampening demand and creating a stagnant trading atmosphere. Comparing prices to the same quarter last year, there has been a noticeable decrease, reflecting the prevailing bearish market sentiment and weak demand conditions impacting Glyoxal prices in the APAC region.
Europe
During Q1 2024, the Glyoxal market in the European region exhibited mixed price trends. The quarter began positively with price increases in January, attributed to higher Ethylene Glycol feedstock prices. However, February saw a significant surge in prices driven by escalating Crude Oil prices and supply concerns stemming from the Red Sea crisis. The ongoing crisis disrupted the supply chain, resulting in delayed import arrivals and tightening raw material availability. This scarcity, combined with robust overseas demand from the USA and Asia, propelled Glyoxal prices upward in the European market. In Germany, the largest market for Glyoxal in the region, prices mirrored the overall European trend. Prices started the quarter with an upward trajectory but experienced a substantial jump in February due to the same market factors, including supply disruptions caused by the Red Sea crisis. The scarcity of Glyoxal in Germany further intensified price increases during this period. Overall, the pricing environment for Glyoxal in Q1 2024 was characterized as bullish, driven by supply challenges and heightened demand. Geopolitical tensions and supply chain disruptions contributed to market uncertainties. Despite this, domestic demand for Glyoxal remained stable, particularly within the downstream construction industry. The quarter-ending price for Glyoxal 40% FOB Hamburg in Germany was USD 670/MT, reflecting a significant increase compared to the same quarter last year and indicating a positive pricing environment for Glyoxal in Germany amidst supply constraints and heightened global demand.
For the Quarter Ending December 2023
Nort America
In the fourth quarter of 2023, Glyoxal prices in the USA experienced an upward trend, driven by expanded demand and supply dynamics within the market. Despite a decline in feedstock Ethylene glycol prices in production, the impact on Glyoxal pricing was not significantly pronounced. Supply chain activities in the region encountered challenges, with notable concerns identified in the overall supply.
The downstream construction sector, a key consumer of Glyoxal, exhibited no substantial improvement compared to the preceding month, maintaining demand at a moderate to stable level. According to Fred's data, the Producer Price Index (PPI) for cement remained unchanged at 240.35 in October, influencing the consumption of goods in November. Despite the static PPI for cement, Glyoxal prices saw an increase during the month, attributed to a substantial surge in production costs.
Additionally, the acceleration in the pace of private sector output expansion, demonstrating the fastest expansion since July, further contributed to the upward trajectory of Glyoxal prices, sustained through October and November. Internationally, Glyoxal prices witnessed an increase in the global market, unaffected by downstream demand. This rise was primarily driven by prolonged high production costs and certain supply chain issues, shaping the market dynamics for Glyoxal in the fourth quarter of 2023.
Europe
During the fourth quarter of 2023, the Glyoxal market underwent a notable shift, witnessing a downward trend in prices after a persistent incline in the previous quarter. In the German market, merchants strategically managed operations based on existing stock levels, resulting in a decrease in new orders. The downstream sectors, encompassing cement, paints & coatings, and textiles, faced a significant downturn in the latter part of the quarter, marked by sharp declines in activity across all segments. The manufacturing Purchasing Managers' Index (PMI) in Germany remained below the threshold limit, indicating subdued consumption of Glyoxal during this period. Supply limitations created by domestic key players sought to raise product prices due to prolonged high production costs and inflation in the country, easing down as demand fell in both domestic and international markets in November. However, the last month of the quarter witnessed a noteworthy decrease in Glyoxal prices in the German market, primarily attributed to diminished demand in the downstream construction industry amid challenging economic conditions and subdued purchasing activities. Security concerns heightened in mid-December following attacks on commercial vessels in the southern Red Sea, amplifying global apprehensions about potential disruptions in the supply chain. This crisis, unfolding just before the Christmas holidays, had a pronounced impact on market dynamics.
APAC
In the fourth quarter of 2023, Glyoxal 40% prices experienced a notable 18% increase in the Chinese market. This upturn was influenced by varying inventories among traders in China, leading to fluctuating quotations for the product. Consequently, the average price surpassed the October quotation. In the importing Indian market, demand for Glyoxal 40% from the downstream textile industry remained moderate to stable, driven by an upswing in textile product prices amid the heightened need for winter clothing and the peak festive season in India. Meanwhile, the Chinese textile industry faced subdued demand, evident in the declining prices of PSF. Despite a sluggish industrial landscape in China, reflected in a marginal decrease in the Purchasing Managers' Index (PMI) from 49.5 in October to 49.4 in November (NBS China), exports to the Indian market surged during the peak festive season, intensifying market competition. The demand for textiles in China remained lacklustre, as seen in the declining prices of textile products towards the end of November. Similarly, the construction sector in China experienced subdued demand, with house prices declining by 0.37% and second-hand houses by 0.79% in November, albeit at a slower rate than in October. Conversely, the Indian market exhibited heightened renovation activities during the peak festive season, providing resilience to the Chinese Glyoxal market.
