For the Quarter Ending September 2024
North America
In Q3 2024, the North American Glyoxylic Acid market experienced a decline in prices, reflecting a bearish market environment. Several factors contributed to this pricing scenario. The market has maintained moderate to high supply levels, ensuring steady production to meet demand from downstream industries. Despite some fluctuations in inventory due to external factors like natural disasters, overall supply remained robust. However, demand from the end-user cosmetics market stagnated, and manufacturing activities were subdued, characterized by low trading levels that indicated reduced consumption of Glyoxylic Acid.
In the USA, which saw the most significant price changes, the market remained steady with no major disruptions in the supply chain. While the prices of essential feedstock, such as Nitric Acid and upstream Ammonia, were increasing, their cost pressure on Glyoxylic Acid prices remained limited. Compared to the previous quarter, prices recorded a modest decline of 3.2%, showcasing an overall downward trend.
Most demand came from smaller buyers, reflecting a cautious and measured approach within the market. The latter half of the quarter saw a slight price surge of 0.2% compared to the first half, indicating a gradual decrease over the period. By the end of the quarter, the price of Glyoxylic Acid (50%) FOB Louisiana was recorded at USD 1561/MT, underscoring the prevailing challenging market conditions.
APAC
In Q3 2024, the APAC region experienced a decrease in Glyoxylic Acid prices, with China at the forefront of significant price changes. The Chinese Glyoxylic Acid market continued to decline. The price of essential feedstock material Nitric Acid was declining the same period prompting towards reduced production rates thus exerting downward pressure on Glyoxylic Acid. This price downturn is largely attributed to the surplus availability of Glyoxylic Acid within the market. Persistent port congestion has resulted in stockpiled inventories at various ports across China. Severe weather conditions affecting East Asian ports have exacerbated congestion, leading to numerous sailing cancellations. On the demand side, the market faced inconsistent requirements from major end-use industries, particularly the cosmetics and haircare sector. Specifically focusing on China, the market witnessed the significant price fluctuations. The quarter recorded a marginal decline of -1% from the previous quarter in 2024. Notably, the second half of the quarter saw an 3.9% price increase, culminating in a quarter-ending price of USD 1160/MT of Glyoxylic Acid (50%) FOB Qingdao in China.
Europe
The third quarter of 2024 has been challenging for the Glyoxylic Acid market in the Europe region, marked by decreasing prices. Several factors have contributed to this trend, including subdued demand from key industries like cosmetics and haircare, logistical challenges impacting international trade, and a lacklustre performance in the global market. France, in particular, has witnessed significant price changes, reflecting the overall negative sentiment in the market. Most of the demand came from smaller buyers, indicating a cautious and measured approach within the market. The quarter saw a 5% decrease compared to the previous quarter in 2024. Notably, prices in the first half of the quarter were 3% higher than in the second half, indicating a rapid decline towards the end of the period. The quarter-ending price for Glyoxylic Acid (50%) Bulk FD Le Havre in France stood at USD 3035/MT, underscoring the prevailing downward pricing trend in the market. The overall pricing environment has been predominantly negative, with consistent pressure on prices due to a combination of demand constraints and external market dynamics.
For the Quarter Ending June 2024
North America
The North American Glyoxylic Acid market experienced mixed sentiments throughout the second quarter. Prices surged by 4.4% in April but declined as the quarter progressed. The initial increase in Glyoxylic Acid prices was primarily driven by the resurgent seasonal demand from the downstream cosmetics and haircare sector during the summer season. Surveys indicated a significant surge in sales for leading players in the Western market, with sales growth exceeding 6%. Notably, L'Oréal, the world's largest beauty company, reported sales growth of over 12% in both North America and Europe, with its mass market range and dermatological products offsetting weaknesses in the luxury segment.
The increased sales of cosmetic products subsequently stimulated demand for Glyoxylic Acid, which is a vital ingredient in various cosmetic formulations. However, prices dipped towards the end of the quarter. Throughout this period, the inflow of cargoes was smooth, and no major hindrances in the supply chain were reported.
Simultaneously, demand began to drop as consumers had already stocked up on inventories. By the end of the quarter, the price of Glyoxylic Acid 50% FOB Louisiana was USD 1,636, reflecting the overall market dynamics of fluctuating demand and stable supply.
APAC
The Asian Glyoxylic Acid market exhibited mixed sentiments throughout the second quarter, with China and South Korea being the most affected areas. Prices surged during the initial two months of the quarter, driven by the resurgent seasonal demand from the downstream cosmetics and haircare sector during the summer season. Surveys revealed a significant increase in sales for leading players in the Chinese market, with L’Oréal registering a month-on-month increase of over 50%, followed by Head & Shoulders with a 68.7% rise, and Lancôme experiencing a surge of more than 50%. These increased sales of cosmetic products stimulated demand for Glyoxylic Acid, a crucial ingredient in various cosmetic formulations. This resurgence in demand from the cosmetics and haircare sectors underscores the gradual recovery of consumer confidence and purchasing power, reflecting positive momentum within these industries. However, prices declined during the final month of the quarter. Throughout this period, the inflow of cargoes remained smooth, and no major hindrances in the supply chain were reported. Simultaneously, demand began to drop as consumers had already stocked up on inventories. By the end of the second quarter, the price of Glyoxylic Acid (50%) CFR Busan was USD 1,207 per metric ton, reflecting the overall market dynamics of fluctuating demand and stable supply.
Europe
During the second quarter of 2024, the European Glyoxylic Acid market exhibited mixed sentiments. Prices increased by 2.8% in the initial month of the quarter but subsequently declined. The initial price rise was mainly due to the resurgent seasonal demand from the downstream cosmetics and haircare sector during the summer season. Surveys indicated a significant increase in sales for leading players in the Western market, with sales growth exceeding 6%. Notably, L'Oréal, the world's largest beauty company, reported sales growth of over 12% in both North America and Europe, with its mass market range and dermatological products offsetting weaknesses in the luxury segment. The increased sales of cosmetic products stimulated demand for Glyoxylic Acid, a vital ingredient in various cosmetic formulations. However, prices dipped towards the end of the quarter as demand waned, and consumers had already stocked up on inventories. Throughout this period, the inflow of cargoes was smooth, with no major supply chain disruptions reported. By the end of the quarter, the price of Glyoxylic Acid 50% FOB Louisiana was USD 1,636, while the quarter-ending price of Glyoxylic Acid 50% FD Le Havre (France) was USD 4,111 per metric ton. These prices reflect the overall market dynamics of fluctuating demand and stable supply.
For the Quarter Ending March 2024
North America
The North American Glyoxylic Acid market exhibited optimistic market sentiments throughout the first quarter of 2024, primarily attributed to a surge in demand from downstream sectors such as cosmetics and haircare.
In January 2024, demand remained robust in the western market amidst New Year festivities; however, it tapered off as the month progressed. Conversely, consumers in the Asian market remained active during the last two months of the quarter, anticipating forthcoming Lunar New Year, Ramadan, and Easter festivities. Concurrently, demand from the personal and haircare segments also revived as the summer season approached.
Additionally, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Glyoxylic Acid during the period. Overall, the North American Glyoxylic Acid market in the first quarter of 2024 demonstrated a positive pricing trend, with prices on the rise. The latest recorded quarter-ending price for Glyoxylic Acid in the USA stood at USD 1597 per metric ton.
APAC
The Asian Glyoxylic Acid market exhibited a volatile nature throughout the first quarter of 2024, with China and South Korea emerging as the most affected countries. Prices experienced a notable decline during the initial month of the quarter in the Asian market but saw subsequent increases throughout the quarter. In January 2024, demand for Glyoxylic Acid from the Asian cosmetics and haircare market remained subdued, with no new bids or inquiries observed during this period. However, demand from importing western countries was modest during the initial week of January, coinciding with New Year festivities, although it did not significantly impact Asian Glyoxylic Acid prices. Contrarily, prices surged significantly during February and March as anticipation for forthcoming Lunar New Year, Ramadan, and Easter festivities heightened. Concurrently, demand from the personal and haircare segments also revived as the summer season approached. Moreover, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Glyoxylic Acid during the period. As of the latest available data, the quarter-ending price for Glyoxylic Acid (50%) Cost and Freight (CFR) at Busan in South Korea was recorded at USD 1259 per metric ton.
Europe
The European Glyoxylic Acid market displayed a volatile nature throughout the first quarter of 2024, with Germany and Italy emerging as the most affected countries. Prices witnessed a notable decline during the initial month of the quarter in the European market but experienced subsequent increases throughout the quarter. Demand for Glyoxylic Acid from western countries was modest during the initial week of January, coinciding with New Year festivities; however, it did not significantly impact Asian Glyoxylic Acid prices. Conversely, prices surged significantly during February and March as anticipation for forthcoming Lunar New Year, Ramadan, and Easter festivities heightened. Concurrently, demand from the personal and haircare segments also revived as the summer season approached. Moreover, the festive atmosphere prevalent throughout the quarter resulted in a noticeable slowdown in operational efficiencies within manufacturing facilities, as personnel adjusted their work pace to align with celebratory events. Consequently, this operational deceleration added pressure to the already constrained supply of Glyoxylic Acid during the period. As of the latest available data, the quarter-ending price for Glyoxylic Acid (50%) Cost and Freight (CFR) at Genoa in Italy was recorded at USD 3999 per metric ton.
For the Quarter Ending December 2023
North America
The North America Glyoxylic Acid market in the current quarter of 2023 presented a mixed scenario. Global product supply remained moderate, and demand from the cosmetics and personal care sector remained consistent.
The expected rise in feedstock Nitric Acid and upstream Ammonia prices impacted Glyoxylic Acid production costs, leading to fluctuating market prices. Prolonged drought conditions and persistent bottlenecks caused delays in exports from the USA via the Panama Canal, resulting in inventory accumulation within the country. However, the cosmetics and haircare industry's strong performance, in anticipation of the upcoming festive season, sustained demand from the international market, notably India. As November unfolded, prices began to decline with the waning of seasonal demand.
Persistent bottlenecks in the Panama Canal, exacerbated by prolonged drought conditions, led to delayed shipments and lengthy queues. Additionally, attacks in the Red Sea, a significant trade route, intensified the situation, raising ocean freight rates. In response, Maersk announced rerouting vessels away from Red Sea routes, choosing navigation around Africa's Cape of Good Hope, substantially increasing tonne-miles. These developments posed a multifaceted challenge for global trade, resulting in increased port inventories. The intricate interplay of these factors contributed to a narrowed gap between demand and supply, supporting the overall downturn in the market.
APAC
During the initial month of the fourth quarter of 2023, the Glyoxylic Acid market in the Asia Pacific region witnessed an increase. However, the market in this region adopted a predominantly bearish stance for the remainder of the quarter. In October 2023, Chinese Glyoxylic Acid prices experienced a marginal rise due to robust demand from both domestic and international cosmetics and haircare markets. Enquiries from the international market, particularly from India, remained strong, fuelled by the robust performance of the cosmetics and haircare industry in anticipation of the forthcoming festive season. As November unfolded, prices began to decline with the passing of seasonal demand for the material. Additionally, recent rebel attacks in the Red Sea introduced global trade uncertainties. Major shipping companies, such as Chinese Cosco and its subsidiary OOCL, along with Taiwanese Evergreen, temporarily suspended cargo transport along the Red Sea route – a crucial maritime pathway connecting Europe, Asia, and Africa. This disruption led to the rerouting of commodities through alternative channels, resulting in long queues and delayed shipments, ultimately causing a surge in port inventories. The intricate interplay of these factors contributed to a narrowed gap between demand and supply, consequently supporting the downturn in prices.
Europe
The European Glyoxylic Acid market experienced bullish trend for the initial two months of the fourth quarter of 2023. The expected rise in feedstock Nitric Acid and upstream Ammonia prices impacted Glyoxylic Acid production costs, leading to fluctuating market prices. Further, demand for European Glyoxylic Acid from the Indian and North American market was firm during this period amidst the forthcoming Diwali and New Year celebrations. As December unfolded prices begin to decline as the peak seasonal demand has passed. Further, the recent attacks on Red Sea trade by Yemeni rebels raised concerns about the safety of maritime traffic in the region, leading to disruptions in Red Sea trade that are expected to substantially impact global supplies of various commodities including Glyoxylic Acid. Shippers also imposed extra fees amid the trade disruption in the Red Sea, making Asian consumers hesitant to make bulk purchases. This has consequently led to a surge in inventories within the European market. The intricate interplay of these factors contributed to a narrowed gap between demand and supply, supporting the overall downturn in the market.
