For the Quarter Ending June 2024
North America
In the second quarter of 2024, the North American Liquid Glucose market saw a downward trend in pricing, influenced by several factors that shaped market conditions. The United States, in particular, experienced notable price fluctuations, resulting in an erratic pricing environment throughout the quarter.
The drop in prices was largely attributed to a decline in business sentiment, which introduced economic uncertainty. This sense of caution among industry players was reflected in their reluctance to invest in capital and expand inventory, influenced by current monetary policies and economic instability. Additionally, consumer sentiment continued to weaken for the third consecutive month, driven by concerns over personal financial stability and ongoing inflationary pressures. Compounding these issues, the Red Sea crisis led to a sharp increase in shipping costs, disrupting supply chains. This unexpected cost surge forced many businesses to reevaluate their procurement strategies, leading to a more conservative approach to purchasing.
Overall, the pricing environment for Liquid Glucose in Q2 2024 witnessed fluctuations influenced by demand, supply chain disruptions, and economic conditions.
Asia Pacific
In the second quarter of 2024, the pricing dynamics for Liquid Glucose in the Asia-Pacific (APAC) region shifted downward. This decline in prices was primarily driven by a combination of reduced new orders and logistical challenges, especially in the export sector. These factors led to an oversupply within the domestic market, contributing to lower prices. Economic indicators during this period suggested a moderation in inflationary pressures. Notably, a decrease in fuel costs resulted in reduced operational expenses for companies, which, in turn, allowed for lower pricing of Liquid Glucose. However, the market faced additional turbulence due to ongoing geopolitical instability in several key regions, which disrupted supply chains and introduced greater market volatility. Despite a strong start to the year, the manufacturing sector encountered significant challenges. Severe heatwaves led to reduced working hours, which in turn caused a slowdown in production output. These difficulties, combined with logistical issues exacerbated by geopolitical tensions, further strained the market. By the end of the quarter, the price for Liquid Glucose (Food Grade) in Mumbai, India, was reported at USD 38,950 per metric ton.
Europe
In the second quarter of 2024, the pricing landscape for Liquid Glucose in Europe exhibited a downward trend, influenced by a variety of economic factors. A significant factor was the deteriorating sentiment among German businesses, spurred by increasingly pessimistic forecasts for Europe's largest economy. This growing pessimism led to reduced demand within the domestic market, which put downward pressure on prices. Companies reported dissatisfaction with current business conditions, largely due to a lack of effective demand. Persistent inflationary pressures and high interest rates further contributed to restrained consumer spending, with many sectors adopting a cautious "wait and see" stance. This cautious approach further dampened demand and pressured prices downward. Additionally, the appreciation of the euro reduced import costs for Liquid Glucose, contributing to the overall decline in prices. Suppliers and distributors also played a role in this trend by focusing on clearing out older inventory at discounted rates to prepare for the arrival of new stock in the upcoming quarter. This strategy aimed at optimizing future supply chains, and also influenced the price decline for products like Liquid Glucose.
