For the Quarter Ending December 2024
North America
In Q4 2024, Oxalic Acid prices in the U.S. market continued to decline, primarily due to weak demand from sectors like construction, metals, and leather tanning. The U.S. heavily relied on imports from Asian and European markets, including China, Taiwan, and India, which influenced overall price dynamics. Despite the decline, signs of market stabilization emerged by the end of the quarter, with producers and end-users cautiously optimistic about the outlook.
Manufacturing activity in the U.S. contracted in December, though at a slower pace compared to November. Despite some recovery signs, production levels remained stable, and raw material costs were lower due to falling crude oil prices. These factors contributed to lower production costs for Oxalic Acid.
Demand from industries such as textiles and refrigerants continued to soften, which further impacted the pricing trend. Analysts predicted that Oxalic Acid prices would remain stable, supported by steady raw material costs and controlled production levels. However, the market remained cautious, with a "wait and watch" approach prevailing among manufacturers and traders as the year ended.
APAC
In Q4 2024, Oxalic Acid prices in the APAC region, particularly in China, saw a decline due to a balance between supply and demand. The need for large-scale developments decreased, driven by stabilizing or declining populations in developed regions, which contributed to weaker demand. As one of the major exporters, the Asian market continued to play a key role in shaping Oxalic Acid market dynamics. The demand from industries such as aluminum production, refrigerants, and specialty chemicals remained low, further impacting the market.
Manufacturing activity faced challenges due to a subdued demand outlook both domestically and internationally. Despite efforts to integrate automation and digital technologies, the mainland’s leading port operator struggled with rising operational costs. Additionally, the rebound in crude oil prices put upward pressure on Oxalic Acid prices, although feedstock markets, particularly for Formic Acid, showed signs of recovery, fostering a more optimistic sentiment.
Demand from sectors like construction remained weak, and although business activity in construction showed slight improvement, the overall market outlook remained cautious. Analysts predicted that Oxalic Acid prices would remain stable, supported by steady raw material costs and controlled production levels.
Europe
In Q4 2024, the Oxalic Acid market in Europe, particularly in Germany, experienced a downward trend, with prices showing modest declines in October. This shift was attributed to a cautious sentiment among both producers and end-users, reflecting a subdued outlook for the commodity. As a key consumer and exporter, Germany continued to influence the market, but demand from industries such as aluminum production, refrigerants, and specialty chemicals remained moderate. Sufficient inventory levels and weaker demand contributed to market stabilization under softer conditions.
Manufacturing activity in the region faced challenges, particularly with slowed production due to reduced consumption and a weak demand outlook. Port operations had mostly returned to normal after congestion issues, although minor delays occurred during the holiday period. The drop in crude oil prices further pressured Oxalic Acid prices, making it a more competitive option in the market.
Despite these challenges, analysts predicted that Oxalic Acid prices would remain stable, supported by consistent raw material costs and controlled production levels. However, demand from industries like leather and textiles continued to decline, contributing to the overall downward pricing trend.
South America
In Q4 2024, Oxalic Acid prices in the South American market experienced a continued decline, largely due to sluggish demand from key sectors like construction, metals, and leather tanning. The region remained reliant on imports from major suppliers in Asia and Europe, such as China, Taiwan, and India, which impacted the overall price trend. However, toward the end of the quarter, signs of market stabilization began to appear, with producers and end-users expressing cautious optimism for the future.
Manufacturing activity in South America showed a slowdown in December, although at a more moderate rate compared to November. Despite some positive indications, production levels remained steady, and lower crude oil prices helped reduce raw material costs. This contributed to a decrease in production expenses for Oxalic Acid.
Demand from industries like textiles and refrigerants continued to weaken, further affecting price dynamics. Analysts anticipated that Oxalic Acid prices would stabilize, supported by steady raw material costs and consistent production levels. However, the market remained hesitant, with manufacturers and traders adopting a "wait and see" approach as the year drew to a close.
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.
