For the Quarter Ending September 2024
North America
In Q3 2024, the Oxalic Acid market in North America witnessed a notable downturn in prices, driven by a confluence of factors impacting supply and demand dynamics. The market grappled with disruptions in the global supply chain, exacerbated by container crises and logistical challenges, leading to a moderation in prices.
Heightened uncertainties, including potential disruptions by the International Longshoremen’s Association and supply chain constraints, added pressure on prices. Additionally, reduced demand from the construction and metals sectors further contributed to the downward trend. Specifically in the USA, the market experienced the most significant price changes, reflecting the broader regional trend. The decline in construction input prices observed in September had been primarily driven by a significant drop in oil prices. Although domestic freight rates remained low compared to historical standards, rising global container-shipping rates and emerging supply chain issues were expected to push materials prices higher in the coming months.
This had caused concern among contractors, many of whom anticipated a reduction in their profit margins over the next six months. While imports from Asia could have been rerouted through West Coast ports, doing so would have placed substantial strain on both port and landside infrastructure. Imports from Europe and Latin America, however, would have encountered challenges, as alternative routes were limited. Additionally, the potential for a strike at US ports had posed a serious risk of triggering a new supply chain crisis.
APAC
In Q3 2024, the APAC region saw a significant uptrend in Oxalic Acid prices, driven by multiple market dynamics. China experienced the most pronounced fluctuations, with constrained supply chains, weak downstream demand, and external factors like fluctuating crude oil prices playing key roles in shaping the pricing landscape. Despite disruptions and plant shutdowns, the market in China followed the overall regional trend, maintaining an upward trajectory. Seasonality and correlations in price changes further reinforced this positive momentum. The golden week festive break and market participants should carefully track any developments or news that might spark renewed trading activity or boost demand. Oxalic acid demand remained steady from sectors such as iron cleaning agents and leather tanning. Meanwhile, stainless steel prices experienced volatility due to disruptions in the macroeconomic environment and the supply chain. Despite these fluctuations, raw material prices for stainless steel remained strong, with inventory levels stable at moderate levels. Although short-term contradictions were not yet significant, potential fluctuations could arise from shifts in macroeconomic sentiment. Monitoring raw material prices and social inventory levels had been crucial for assessing future trends.
Europe
In Q3 2024, the Europe region witnessed a notable increase in Oxalic Acid prices, driven by a combination of factors. Supply constraints, stemming from global freight industry challenges and port congestion, exerted upward pressure on prices. Strong demand, coupled with tight capacity, further escalated the pricing environment. Additionally, the eurozone manufacturing sector displayed signs of weakness, prompting manufacturers to limit discounts and adjust output charges. This, in turn, contributed to the overall bullish market sentiment. Germany, in particular, experienced significant price changes, with a 27% increase from the previous quarter. Seasonal trends and market dynamics played a crucial role in shaping the price trajectory, with a 2% price variation between the first and second half of the quarter. Seasonal factors led to reduced consumption, while an oversupply—driven by enhanced production efficiency and capacity expansions—further pushed prices downward. Additionally, high inventory levels and increased exports from the region amplified the price decline. Despite the EU's efforts toward achieving climate neutrality, progress in reducing greenhouse gas emissions from the transport sector has remained slow. A report released by the European Environment Agency (EEA) highlights that the sector's shift toward sustainability is being hindered by rising transport demand and the slow advancement of sustainable transportation alternatives.
South America
In Q3 2024, the South America region experienced a downturn in Oxalic Acid pricing, with Brazil notably witnessing significant price fluctuations. The market was influenced by a combination of factors that contributed to the decreasing prices. Supply chain disruptions, including challenges in container shipping and scarcity of capacity, led to a tight supply, impacting prices. Additionally, increased freight costs from China and disruptions at major Asian ports added pressure on pricing dynamics. Demand from the downstream construction sector showed signs of weakening, further exacerbating the price decline. Brazil, in particular, saw the maximum price changes, with a noticeable correlation between overall trends, seasonality, and price fluctuations. The quarter recorded a 17% decrease from the previous quarter, with a notable -5% difference between the first and second half of the quarter. Although domestic freight rates remained low compared to historical levels, rising global container-shipping rates and emerging supply chain challenges could push material prices higher in the coming months. This raised concerns among contractors, many of whom expected a decline in their profit margins over the next six months.
For the Quarter Ending June 2024
North America
The Oxalic Acid market in North America surged in Q2 2024, driven by a confluence of market dynamics and external factors. A tight supply from Asian markets, exacerbated by elevated freight charges and disruptions in major shipping routes, notably contributed to this price surge. The demand from the construction and cleaning sectors remained robust, further pressuring the supply chain. Additionally, the rising prices of feedstock, particularly ethylene glycol, escalated operational costs, intensifying the upward pricing momentum.
In the USA, where price changes were most pronounced, the market showcased a clear bullish trend. The overall trends reflected strong seasonality effects, with construction activity peaking and contributing to the heightened demand for oxalic acid. The first half of the quarter saw a significant price hike, outpacing the latter half by 31%, indicating a rapid initial surge followed by a period of stabilization. The continuous demand from downstream industries, including solvents, cleaning, and leather tanning, provided a steady pull on the market, while the operational rates in manufacturing units showed signs of deceleration due to constrained supply and logistical challenges.
The quarter-over-quarter price escalation was marked at 18%, underscoring a notable increase in market rates compared to Q1 2024. The quarter concluded with oxalic acid priced at USD 739/MT CFR Los Angeles, highlighting a positive pricing environment. Despite the lack of reported plant shutdowns, the persistent issues such as the collapse of the Francis Scott Key Bridge disrupting logistics and the strategic rerouting by shipping lines like COSCO underscored the market's vulnerability to external disruptions. Overall, Q2 2024 reflected a robust and bullish pricing environment for oxalic acid in North America, particularly within the USA.
APAC
In Q2 2024, the Oxalic Acid market in the APAC region experienced significant pricing declines, driven primarily by a confluence of factors that exerted downward pressure. The quarter saw a substantial contraction in demand from various sectors, including construction and cleaning, due to economic slowdowns and market uncertainties. Rising production costs and higher feedstock prices, coupled with decreased purchasing power, further exacerbated the situation. Additionally, logistical challenges, particularly in shipping and port congestions, compounded supply chain disruptions, leading to stockpile accumulation and ultimately catalyzing price reductions.
China, being a pivotal market in the APAC region, exhibited the most pronounced price changes. The Chinese market's decline was characterized by a substantial decrease in demand from construction and real estate sectors, exacerbated by seasonal factors such as prolonged rainfall and corresponding lower activity in the infrastructure domain. This seasonality, combined with high inventory levels and sluggish sales, strained market dynamics. The correlation between these factors led to a consistent downward trend in prices, reflecting a negative pricing environment.
The price of Oxalic Acid in China fell significantly throughout the quarter, marking a -2% change from the previous quarter and a notable -9% drop between the first and second half of the quarter. The latest quarter-ending price stood at USD 416/MT FOB Qingdao. This persistent decrease underscores a bearish sentiment, shaped by weak demand, higher operational costs, and logistical bottlenecks. The quarter's overall negative pricing trend, without any reported plant shutdowns or disruptions, highlights a challenging market landscape for Oxalic Acid in the APAC region.
Europe
The second quarter of 2024 has proven to be a chaotic period for the Oxalic Acid market in Europe, characterized by pronounced price increases. This upward trend has been driven by a confluence of factors including labor shortages in the construction industry, resumed operations of clinker production lines, fluctuating yet stabilizing coal prices, and the impact of long-term cooperative shipping agreements. These elements collectively have led to greater inventory pressures and a fragile stabilization of the cement market, further complicating the pricing dynamics of Oxalic Acid.
Focusing on Germany, the country has experienced the most significant price movements within the region. The manufacturing sector's contraction, alongside a cautious purchasing approach from power plants amidst fluctuating thermal coal prices, has exacerbated supply constraints. German stakeholders have noted a consistent demand from the pharmaceutical sector, despite inflationary pressures and a less competitive cost environment compared to the Middle East and Asia. Seasonal factors such as rising temperatures have also played a role, maintaining a moderate yet sustained demand for Oxalic Acid, particularly for its application in cleaning and leather tanning.
The overall trend in Germany has shown a steep 25% increase from the previous quarter, with a notable price escalation of 33% between the first and second halves of Q2. The latest quarter-ending price for Oxalic Acid in Germany has reached USD 720/MT FOB Hamburg, signifying a robust upward trajectory. This consistent increase in pricing reflects a predominantly positive sentiment, driven by limited inventories, increased production costs, and sustained demand across various end-use sectors. The market context suggests that the pricing environment for Oxalic Acid in Germany has been decisively bullish, with no major disruptions or plant shutdowns reported during this quarter.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American Oxalic Acid market witnessed a variety of factors that affected market prices. Overall, market sentiment was relatively stable, with moderate levels of demand and supply. Various factors influenced the pricing environment for Oxalic Acid in the region, including demand from industries like cleaning agents, leather tanning, and solvents.
Additionally, the construction sector contributed to supporting Oxalic Acid demand, benefiting from declining mortgage rates and improving construction spending. In the United States, the market saw significant price changes, with prices rebounding in February following a decline in January.
Demand in the US was driven by strong activity in cleaning, coagulating, and metal polishing industries throughout the month. It's noteworthy that prices in Q1 2024 were relatively lower compared to the same quarter last year. In summary, the pricing environment for Oxalic Acid in the North American market during Q1 2024 was relatively stable, characterized by moderate demand and supply levels. The market was influenced by various industries' demand and the construction sector. Prices in the US market exhibited some fluctuations but remained stable overall, with a quarter-ending price for Oxalic Acid CFR Los Angeles at USD 540/MT.
APAC
The first quarter of 2024 presented a mixed period for Oxalic Acid pricing in the APAC region. While prices in China fluctuated, the overall trend remained stable with moderate supply and demand. Various factors influenced market prices during this period. In China, Oxalic Acid prices rebounded in the second month of the year due to increased demand in the domestic market and a tight supply chain caused by the Lunar New Year break.
Demand from the cleaning, construction, and metal industries remained high, impacting final prices. The resumption of production after the holiday break led to increased production and the need for manufacturers to meet demand. Despite this, demand outlook for Oxalic Acid from the iron and cleaning industries remained moderate.
Steel producers advocated for a halt on iron ore exports, leading to a rise in sales to Chinese mills and an increase in local prices. The manufacturing sector in India showed improvement, with production and sales increasing at the fastest rate in five months. Overall, the pricing environment for Oxalic Acid in the APAC region during Q1 2024 was positive, with moderate supply and demand. The market was influenced by factors such as increased demand from the cleaning and iron industries, geopolitical tensions, and global energy prices. The latest quarter-ending price for Oxalic Acid in China was USD 450/MT FOB Qingdao.
Europe
In the European region, Oxalic Acid prices experienced a mixed trend in the first quarter of 2024. Overall, the market was influenced by various factors that led to fluctuations in prices. Germany, as the largest economy in Europe, faced challenges such as high energy costs, sluggish global orders, and historically high-interest rates, which impacted the demand and pricing of Oxalic Acid. This resulted in a bearish market situation, with prices declining and a low to moderate supply. Similarly, Belgium also witnessed a bearish market, with Oxalic Acid prices decreasing due to a lack of customer interest and reduced feedstock prices. The demand outlook from industries like styrene and cumene remained low, affecting the overall demand for Oxalic Acid. The supply in Belgium was also low to moderate, with excess inventories and a simultaneous reduction in feedstock prices. In terms of price trends, both Germany and Belgium experienced declines in Oxalic Acid prices compared to the previous quarter. Overall, the pricing environment for Oxalic Acid in Europe during the first quarter of 2024 can be considered bearish, with prices decreasing and a moderate demand outlook. Factors such as high energy costs, sluggish global orders, and reduced feedstock prices influenced the market dynamics. The latest quarter-ending price for Oxalic Acid in Belgium was USD 535/MT CFR Antwerp.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, the Oxalic Acid market in North America witnessed a southward momentum impacted by several key factors. Firstly, there was a consistent demand from the pharmaceutical sector, leading to stable procurement activities. However, the overall demand from the domestic and international markets declined, resulting in a low overall demand for Oxalic Acid. Additionally, there was an abundant supply of inventories in the domestic market and ports, which contributed to the bearish market sentiment. Furthermore, global energy prices remained steady, leading to lower production costs.
The market faced inventory pressure due to a decrease in upstream stocks, while the stagnant production rates in the pharmaceutical industry affected Oxalic Acid consumption. Adverse weather conditions, such as rain and snow, led to a reduction in domestic corn supply, causing downstream deep-processing enterprises to raise prices slightly for restocking.
Overall, the Oxalic Acid market in North America faced a bearish sentiment in the fourth quarter of 2023, with low to moderate supply, low demand, and declining prices. The latest price for Oxalic Acid CFR Los Angeles in the USA at the end of the quarter was USD 560/MT.
APAC
The APAC region experienced a bearish market for Oxalic Acid in the fourth quarter of 2023. Prices declined due to stable demand dynamics and weak cost support. Stagnant production rates in the pharmaceutical industry led to a decrease in Oxalic Acid consumption. Abundant inventories were present in the domestic market and ports, and feedstock cornstarch prices also saw a decline. Notably, there were no reported plant shutdowns during this quarter. China, a significant player in the Oxalic Acid market, observed a decrease in prices. The domestic market and ports had plentiful inventories, and the drop in feedstock cornstarch prices contributed to the overall decline in Oxalic Acid prices. While demand from the pharmaceutical sector remained steady, there was a decline in demand from both domestic and international markets. Despite these factors, the Chinese market exhibited subdued performance, influenced by low corn prices and stable global energy prices. Regarding price trends, the closing price of Oxalic Acid in China at the end of the quarter was USD 470/MT FOB Qingdao.
Europe
The European Oxalic Acid market encountered difficulties during the fourth quarter of 2023, marked by various factors influencing pricing. Initially, the decline in manufacturing activity across the Eurozone contributed to a reduced demand for Oxalic Acid. Concurrently, a destocking trend resulted in substantial decreases in order book volumes, further impacting demand. Additionally, the lowered crude grade prices for Europe, the Mediterranean, and the United States from Saudi Arabia exerted pressure on the overall production cost of Oxalic Acid. Delving into specific country dynamics, Belgium witnessed a drop in Oxalic Acid prices in this quarter. The domestic market exhibited subdued performance, influenced by low corn prices and weak demand from downstream deep-processing enterprises, affecting pricing dynamics. The overall demand outlook for Oxalic Acid remained tepid, with limited inquiries from buyers in the food and other allied industries.
No plant shutdowns were reported during this quarter. Regarding the price trend, the latest recorded price for Oxalic Acid CFR Antwerp in Belgium at the end of Q4 2023 was USD 550/MT, reflecting a 2.6% decrease compared to the previous quarter.
South America
Overall, the Oxalic Acid market in South America faced a bearish trend during the fourth quarter of 2023, with low demand and cost pressures impacting prices. The Brazilian market experienced the most significant changes, driven by factors such as low corn prices and currency depreciation.
Firstly, there was a consistent demand for Oxalic Acid from the food and pharmaceutical sectors, which supported prices. However, the market also faced challenges due to inadequate cost support and inventory pressure. Additionally, the decline in international demand impacted the overall market dynamics.
In Brazil, which experienced the most significant changes in pricing, the domestic market operated with subdued performance. The low prices of corn, a key feedstock for Oxalic Acid production, contributed to the decrease in prices. Furthermore, the depreciation of the Brazilian Real added to the downward pressure on prices. Looking at price trends, the Oxalic Acid price in Brazil at the end of the fourth quarter was USD 545/MT CFR Santos. This represents a decrease from the previous quarter.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, demand for oxalic acid from metal cleaning, leather tanning, and wood bleaching industries increased in the third quarter of 2023, which contributed to the price increase. In July 2023, Oxalic Acid prices in the US were assessed at USD 560 per metric ton. This was a slight increase from the previous month due to increased demand from the downstream industries and supply disruptions. There were a number of supply disruptions in the North American region in the third quarter of 2023, which also contributed to the price increase. These disruptions included plant closures and transportation delays amidst Union worker strikes during the third quarter. The cost of energy has risen significantly in recent months, and this has also contributed to the increase in the price of oxalic acid, as it is an energy-intensive product to produce.
Asia Pacific
In the Chinese market, Oxalic Acid prices have shown mixed sentiments during the third quarter on the back of changing demand sentiment in the last three months. In the first couple of months, ample demand from downstream metal cleaning and other industries resulted in firm procurements as there were active procurement activities. However, procurements slowed down in the second half as the buyers remained circumspect while procuring, and there was hefty wait-and-see behavior amongst the buyers. There was a decline in demand from the international market, and thus, there were limited procurements from the overseas market as well. Hence, after the conclusion of Q3 2023, Oxalic Acid prices were assessed at USD 514 per MT on an FOB basis.
Europe
In the European region, during the third quarter of 2023, Oxalic Acid prices increased in the first half; this was due to a combination of factors, including strong demand from the end-user industries, supply disruptions, and the rising cost of energy. However, Oxalic Acid prices have dropped towards the second half of 2023 as the demand from the downstream industries eased amidst declining economic activities. After the conclusion of Q3, Oxalic Acid prices in Germany were assessed at USD 534 per MT on FD basis. Meanwhile, imports from the Asian region increased as freight charges dropped sharply during the quarter, and the global trading pattern witnessed a slowdown.
