For the Quarter Ending September 2024
North America
The third quarter of 2024 witnessed an incline in the prices of Polysorbate in the North American market owing to the increased production cost. As a major importer, the U.S. had felt the direct effects of price hikes from key producing nations. Supply chain bottlenecks, such as drought-related disruptions affecting the Panama Canal, reduced vessel traffic, container shortages, and longer lead times, further constrained capacity and raised transportation costs.
The market faced additional strain due to high demand during an early shipping peak season, concerns over potential U.S. port labor disputes, and elevated input and import costs pushed Polysorbate prices upward, creating a challenging environment for both importers and consumers in the pain relief medication market.
Although global price increases in key exporting regions put pressure on the U.S. Polysorbate market, modest production increases gradually revitalized supply chains. Despite rising prices, market sentiment remained positive, with continued order volumes signaling resilience to cost pressures, although intermediaries faced margin pressures due to higher input costs.
APAC
In Q3 2024, the Polysorbate market in the APAC region experienced a downward trend in prices, influenced by various factors. The market witnessed decreasing prices primarily due to a combination of high supply levels, low demand, and fluctuating production costs. The availability of cheaper alternatives and subdued demand from key industries contributed to the negative price trajectory. Additionally, disruptions in supply chains and uncertainties in global trade further impacted market dynamics, leading to a bearish sentiment. Specifically in India, the market reflected the broader regional trend with significant price changes. The correlation between price changes and seasonality was evident, with a notable decrease compared to the same quarter last year. The quarter-on-quarter change recorded a slight decline, indicating a consistent downward trend. The first half of the quarter saw prices slightly higher than the second half, showcasing a gradual decrease. Throughout the quarter, manufacturers were able to maintain the balance as the demand range of the commodity did not surpass the inventories impacting the final prices of Polysorbate in the domestic market.
Europe
European market witnessed a mixed market dynamics throughout the third quarter of 2024 as the prices dipped till the mid of the quarter and rebounded towards the end of the quarter. The European Polysorbate market experienced a notable price decline due to various global and domestic factors. As a major producer and exporter, France benefited from reduced production costs, allowing manufacturers to offer more competitive prices. This shift alleviated the previous upward pressure on global prices, which had been driven by higher export costs. Anticipating improved conditions in importing countries, buyers delayed purchases, leading to reduced demand. Simultaneously, companies began offloading inventories to minimize storage costs and avoid risks associated with product degradation. The increased supply further pushed prices down as sellers opted to destock at lower rates. Additionally, the Euro's appreciation against the US dollars contributed to market stability. Despite stable raw material costs, particularly for Corn, market sentiment remained subdued, with prices remaining low throughout the week, reflecting cautious behavior among market participants.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Polysorbate market in North America saw a significant drop in prices, influenced by several key factors. A major driver of this price reduction was the heightened demand from the frozen food and pharmaceutical industries, which ironically led to production difficulties due to the rising costs of Sorbitol, an essential feedstock. The situation has been further worsened by severe weather, especially hurricanes, which have disrupted petroleum markets and impacted crude oil production and refining operations.
Manufacturers faced the challenge of maintaining profitability amid increasing production costs. Furthermore, disruptions in transportation and logistical networks worsened the situation, causing delays and higher shipping expenses. The global rise in polysorbate demand, especially from pharmaceutical and other industrial uses, added to market pressures, resulting in a scarcity that ultimately pushed prices down to restore market balance.
Researchers have determined that, upon evaluating domestic supply the United States currently falls short in available supply and, in some instances, domestic reclamation capacity needed to achieve company goals.
APAC
In Q2 2024, the Polysorbate market in the APAC region experienced a notable downturn in prices, with several key factors contributing to this trend. The primary reason for the price decline was the increased demand from the frozen food and pharmaceutical sectors, which paradoxically resulted in production challenges due to the rising costs of Sorbitol, a crucial feedstock. Manufacturers grappled with the dual pressures of maintaining profitability amidst escalating production expenses. Additionally, disruptions in transportation and logistical networks further exacerbated the situation, leading to delays and higher shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and other industrial applications, intensified market pressures, resulting in a scarcity that naturally drove prices downward to achieve market equilibrium.
Focusing on India, the country witnessed the most significant price fluctuations within the APAC region. Seasonal factors such as the intense heatwave led to increased demand from the cold beverage and dairy sectors, further straining the supply chain. The overall pricing trend in India reflected a consistent decreasing sentiment, with a marked percentage drop compared to the previous quarter.
The price comparison between the first and second half of the quarter showed a 2% decrease, underscoring the downward trajectory. Overall, the pricing environment in Q2 2024 has been largely negative, driven by a confluence of escalating raw material costs, logistical disruptions, and heightened demand pressures.
Europe
In Q2 2024, the European Polysorbate market experienced a notable price decline due to several factors. The increased demand from the frozen food and pharmaceutical sectors significantly contributed to this trend, ironically causing production challenges due to the rising costs of Sorbitol, a key feedstock. Manufacturers struggled to maintain profitability as production expenses climbed. Additionally, transportation and logistical disruptions exacerbated the issue, leading to delays and increased shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and industrial applications, intensified market pressures, creating a scarcity that ultimately drove prices down to achieve market equilibrium.
Manufacturing in Europe's industrial heartland weakened further in July, confirming the worst fears of EU leaders worried about the direction of the bloc's economy. However, the hope that European industry would swiftly recover faded, even as the eurozone economy as a whole returned to growth. Focusing on Germany, which experienced the most substantial price fluctuations, the overall trend for benzene remained consistently negative. Seasonal factors also contributed, as the typically lower industrial activity during this time further intensified the price decline.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing dynamics of Polysorbate in the North American region were influenced by the increased demand and the production cost. Seasonal effects were observed in the regional market, with demand for Polysorbate being influenced by festive breaks and occasions, leading to demand fluctuations and subsequent pricing effects. Compared to the same quarter last year, Polysorbate prices showed a significant year-over-year increase.
The supply-demand dynamics were complicated by a global increase in polysorbate demand, particularly from pharmaceutical and other sectors, which strained the North American market. This increased demand relative to supply led to a natural price increase to rebalance the market, following the economic principle of scarcity.
Transportation network challenges, including delays and increased shipping costs, were also observed due to heightened demand. The market also felt the impact of intricate crises that influenced crucial trade routes. These included incidents in the Red Sea, geopolitical tensions in the Black Sea, and the effects of climate change on the Panama Canal.
APAC
In Q1 2024, the pricing dynamics of Polysorbate in the APAC region were influenced by a variety of factors beyond the conventional top three. The Indian market experienced seasonality effects, with the demand for Polysorbate influenced by festive breaks and occasions. This led to fluctuations in demand and subsequently affected pricing. When compared to the same quarter last year, Polysorbate prices showed a significant year-over-year increase.
Furthermore, there was a noticeable price change from the last quarter of 2023, indicating a continued upward trend. However, it is important to note that no specific comparison between the first and second halves of the quarter was provided. Ultimately, the final quarter's price for Polysorbate CFR Kandla in India was USD 1404/MT.
The supply-demand dynamics were complicated by a worldwide rise in polysorbate demand, particularly from pharmaceutical and other sectors, placing strain on the Indian market. With demand outstripping supply, the economic principle of scarcity resulted in a natural price increase to rebalance the market. Furthermore, there were issues in transportation networks, causing delays and increased shipping costs due to heightened demand. Additionally, the increasing prices of raw materials added to production expenses, providing favorable cost support to the polysorbate market in India.
Europe
The overall market dynamics of polysorbate in the European market showcase mixed market sentiments impacted by the overall demand outlook for the commodity from the food, beverages, and pharmaceutical sectors in the first quarter. Seasonal patterns affected the regional market, with demand for Polysorbate fluctuating, causing price changes. Compared to the same quarter last year, there was a notable year-over-year rise in Polysorbate prices. The supply-demand balance was complicated by a global increase in demand, especially from pharmaceutical and other industries, which strained the European market. This imbalance resulted in a price increase to restore equilibrium, following the economic principle of scarcity. Challenges in the transportation network, such as delays and higher shipping costs, were also noted due to increased demand.
For the Quarter Ending December 2023
North America
Polysorbate prices in the North American market declined throughout Q4 2023 owing to the weak demand from the pharmaceutical and food sectors. Moreover, global energy prices remained constant, leading to reduced production costs.
The main factor that led to this decline was the ample supply of Polysorbate within the domestic market. Additionally, the primary raw material for Polysorbate, Corn starch, had shown recent susceptibility. Fluctuations in prices occurred in the domestic corn market, and due to the low-cost raw material environment, enterprises successively lowered the factory price of starch, resulting in a modest downturn in domestic corn starch market prices.
The strong USD posed a challenge for international suppliers to compete with China's yuan protection and the appreciating dollar, negatively impacting trade with import-dependent nations. Concerning ocean trade, the North American market maintained a fair degree of stability. Longer wait times at ports were observed as colder air masses and weather conditions affected Atlantic ports.
APAC
In the APAC region, the fourth quarter of 2023 saw various factors influencing the Polysorbate market and prices. Initially, sluggish demand from the frozen food and pharmaceutical industries had a notable impact on the market. This was further compounded by a reduced consumption rate of the commodity in the pharmaceutical sector. Additionally, the availability of alternative options in the domestic market further diminished the demand volume and consumption rate of Polysorbate. Specifically in India, there were significant price changes during this quarter. Polysorbate prices in the Indian market continued to decrease due to slow demand and reduced consumption rates. The lowered prices of feedstock, such as sorbitol and fatty acids, in the domestic market also affected the overall production cost and delivery rate of the commodity in India. Moreover, the continuous drop in temperature decreased the demand volume of Polysorbate from the frozen food and personal care sectors. The Indian currency also depreciated against the USD, contributing to the overall market dynamics. The commodity prices fluctuated throughout the quarter, influenced by factors such as feedstock prices, demand from various industries, and currency fluctuations. The quarter concluded with a Polysorbate price of USD 1406/MT CFR Kandla in India.
Europe
In the European market during Q4, polysorbate prices experienced a southward trajectory due to volatile market sentiment and a decline in economic conditions within the region. Factors such as diminished demand from the pharmaceutical and retail sectors, driven by supply chain disruptions, contributed to a decrease in local market prices. Additionally, concerns regarding deteriorating economic conditions and fluctuating energy costs influenced the European market. The robust performance of the spot market encouraged investors to expand their investments. Simultaneously, restricted supplies from major exporting countries played a pivotal role in impacting the final prices of polysorbate. Concurrently, a destocking trend resulted in substantial decreases in order book volumes, further impacting demand. In the pharmaceutical and food sectors, there was sluggish demand as the availability of alternative and sustainable options reduced the utilization of polysorbate in the regional market. Moreover, the decision by the European Central Bank (ECB) to raise interest rates had a ripple effect on commodity prices, prompting buyers to exercise caution when placing larger orders.
For the Quarter Ending September 2023
North America
In the third quarter of 2023, Polysorbate prices showcased mixed market dynamics as the first half of the quarter witnessed a drop in prices and rebounded in the second half of Q3. A drop in coal prices resulted in reduced production costs, but the accumulation of excess inventory discouraged significant orders from domestic buyers. Moreover, there was a minor increase in upstream production, leading to a surplus of polysorbate. In the third quarter of 2023, the cost of shipping Sorbitol to the United States decreased due to factors like the easing of global supply chain disruptions and a decline in fuel prices. The reduced supply and resulting decline in inventory levels led to an upswing in upstream (sorbitol) prices, as suppliers struggled to meet the demand for the required polysorbate. Many businesses, foreseeing future demand and recognizing supply chain challenges, chose to replenish their inventories in September. This surge in bulk orders created heightened demand, further straining the already limited supply, thereby driving prices up. Additionally, a notable price increase in the United States in September was attributed to rising raw material costs for corn and increased production expenses.
Asia-Pacific
Polysorbate prices in the Asian market showcased mixed market dynamics in Q3 as prices dipped in the first half and regained strength in the second half. The cautious approach of both the US and European Federal Reserve regarding a potential interest rate hike, as driven by other factors, deterred buyers from making significant orders due to increased market uncertainty. Polysorbate production was on the average pace, with manufacturing units operating at moderate capacity levels, leading to an accumulation of domestic inventory. This growing market uncertainty from the buyers' perspective resulted in a downward price trend for the commodity in the first half of Q3. Sorbitol prices (upstream) were at their highest level due to concerns about a poor monsoon season, causing sugar manufacturers to keep prices elevated. However, the Indian government assured that there are ample stocks available to meet the expected high demand during the upcoming festive season. The demand for Polysorbate 80, primarily used as an emulsifier in food, beverages (including frozen food and confectionery), and the personal healthcare sector, remained moderate in the domestic market.
Europe
In the European market during Q3, the prices of polysorbate displayed an upward trend due to volatile market sentiment and declining economic conditions in the region. Factors such as reduced demand from the pharmaceutical and retail sectors, driven by supply chain disruptions, led to a decrease in prices within the local market. Additionally, the European market was influenced by concerns about worsening economic conditions and fluctuating energy costs. The strong performance of the spot market encouraged investors to expand their investments. Concurrently, limited supplies from major exporting countries played a significant role in driving up Sorbitol prices. Furthermore, the increased energy costs have contributed to the overall manufacturing expenses for Sorbitol, thereby contributing to its overall price increase. In the pharmaceutical and food sectors, there was sluggish demand as the availability of alternative and sustainable options reduced the use of polysorbate in the regional market. Moreover, the European Central Bank's (ECB) decision to raise interest rates had a ripple effect on commodity prices, leading buyers to be cautious about placing larger orders.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Polysorbate prices declined on account of a slow demand outlook and retarded production cost. Feedstock (sorbitol) prices witnessed a sharp decline throughout the quarter despite the continuous demand from end-use (frozen food). The US polysorbate market encountered a slow market dynamic because of diminished demand from downstream ventures. This prompted abundant stock, constraining providers to bring down costs. The monetary flimsiness in the US and raised worldwide expansion had likewise added to the decrease sought after, impacting the overall commodity prices. The administration focused on adjusting market interest. However, merchants were reluctant to submit enormous requests because of the falling prices. The central parts of the market were supposed to additionally decrease costs, which would deter restocking by wholesalers and providers.
Asia-Pacific
The Asia-Pacific market witnessed a slight incline in the price dynamics of Polysorbate as the price of the feedstock (sorbitol and other fatty acids) fell faintly. The operational rates in the country remained on a slower edge amidst the declined demand from the end-use (cosmetics, frozen food, and personal care) sector. The importing prices remained on the lower edge as the freight charges were less. Besides, the tight production network in the nation relatively affected the general market elements. The twister (Biparjoy) influenced the West expense of the country, exhibiting its effect on the ports and the interest inventory network.
Europe
The European market saw a declining pattern in the costs of Polysorbate on the record of unsteady interest belief and declining functional rates in the country. Major and minor features, for example, powerless interest from drug and store network disturbance, have driven down the costs in the provincial market. The European market was additionally influenced by the feeling of dread toward declining monetary circumstances and slanted energy costs. The drug and food area exhibited slow interest as the accessibility of other and manageable options has decreased the interest and utilization of Polysorbate in the provincial market. Moreover, the increased interest rate applied by the European Central Bank (ECB) impacted the overall commodity prices, and buyers were reluctant to place higher orders.
For the Quarter Ending March 2023
North America
Overall price dynamics of Polysorbate showcased mixed price dynamics due to fluctuating demand outlook for the product from the pharmaceutical and research field. In the first half of the quarter, prices moved southwards as the demand and productivity output was low in the country, along with fewer inquiries conquered by the suppliers. Feedstock (sorbitol) prices proportionally governed the fluctuations in the prices of Polysorbate. Furthermore, macroeconomic factors such as the US bank crisis along with the fall in container volume on the western shores have further contributed to impacting the overall market prices of Polysorbate in the North American region.
Asia-Pacific
The Asia-Pacific market witnessed an inclination in the price dynamics of Polysorbate as the price of the feedstock (sorbitol and other fatty acids) fell marginally. Demand was declining as end-user manufacturers switched to more reliable and safe alternatives. Demand from the pharmaceutical industry has decreased because of the negative health effects of Polysorbate. The operating units in the Chinese market (exporter) resumed operations post the Lunar holiday, but the final market remains on the low side due to adequate feedstock availability in the first half of Q1. Low demand for the product was seen among Indian suppliers and purchasers, and the supply chain in the Asian market was delayed.
Europe
The European market witnessed a declining trend in the prices of Polysorbate on account of the unstable demand outlook and declining operational rates in the country. Major and minor facets such as weak demand from pharmaceutical and supply chain disruption caused due to a series of protests continued by the European Union members have led down the prices in the regional market. The European market was also impacted by the fear of declining economic conditions and inclined energy prices. The pharmaceutical and food sector showcased slower demand as the availability of other sustainable alternatives has reduced the demand and consumption of Polysorbate in the regional market.
For the Quarter Ending December 2022
North America
Throughout the fourth quarter of 2022, the market prices of Polysorbate declined in the North American market despite the fluctuating feedstock (sorbitol) prices. The industrial output and new order strength declined in the domestic market despite the eased inflationary pressure in the regional market. The demand for the product among pharmaceutical and personal care sectors has declined as the availability of other alternatives created a competitive atmosphere among the major manufacturing units. The Employment Index resumed contracting, while the Production Index shrank but still managed to maintain a small growth rate. Towards the quarter end, the Christmas holidays and the occurrence of the snowstorm in some parts of the USA hampered the supply chain, temporarily halting the production rate and overall market prices.
Asia-Pacific
In Q4 of 2022, the market prices of Polysorbate followed the downward momentum on the back of declining demand for the product in the Asian market. However, the feedstock (sorbitol) prices moved in the opposite direction, and suppliers had sufficient stockpiles to cater to the domestic demand. As the Asian countries experienced weather changes, the demand for frozen food and confectionary was slow. The pharmaceutical industry also demonstrated static demand, which led to fewer inquiries from the market about the product in the nation for the suppliers. Despite the product's higher operational rate and appropriate inventory levels, domestic prices for Polysorbate decreased. Throughout the month, there was continued pressure on China's feedstock supply. The market's accessibility of more effective substitutes ensured that there was little demand for medical services.
Europe
In the fourth quarter of 2022, the price trend for Polysorbate declined as the demand from the pharmaceutical and food sector was low. The end users displayed slower interest in buying the product, and the inventories were just enough to fulfill the demand. On the other hand, the market prices of feedstock (sorbitol) oscillated throughout the quarter. With more competitiveness and easy availability of other alternatives in the market, the demand strength weakened. The supply chain eased throughout the quarter, and new orders declined as the buyers waited for the Christmas holidays to get over and the market to resume operation.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the prices of Polysorbate showcased mixed sentiments because of fluctuating feedstock sorbitol prices in the US market. The country's energy prices and inflation rate remained high throughout the quarter. The demand from downstream, pharmaceutical, and food were low. Furthermore, supply shortages occurred in the market as major supplying countries halted upstream production. Towards the quarter's end, the final prices of Polysorbate were assessed at USD 4900 per MT, FOB Texas (USA).
Asia-Pacific
In the Asia-Pacific region, the price dynamics of Polysorbate followed the uptrend during the third quarter of 2022. Indian manufacturers faced feed supply shortages as China, the major feed producer, restricted the transportation of the product. The firm demand for the product in surfactants and pharmaceutical sector in the Indian market governed the market sentiments of Polysorbate. Furthermore, the Reserve Bank of India increased the interest rate in the country. Energy prices and currency depreciation led to high production costs and increased import prices. Towards the end of Q3, the prices of Polysorbate were USD 2820 per MT, CFR Kandla (India).
Europe
The prices of Polysorbate in the third quarter of 2022 followed the upward trajectory in the European market because of increased feedstock prices. The European regions are facing commodity inflation and high natural gas prices. Towards the end of the third quarter, the supply of natural gas from Russia was disrupted as the gas pipeline was damaged. As the market experienced commodity inflation, feed prices remained high, resulting in high production costs. The market dynamics of Polysorbate in Europe are governed by the stagnant demand for pharmaceuticals and cosmetics. Towards the quarter's end, the prices were assessed at USD 2800 per MT, CFR Vladivostok (Russia).
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the prices of Polysorbate followed the uptrend in the North American region on the back of increasing feedstock sorbitol and oleic acid prices. With the feedstock prices and energy cost hikes, Polysorbate's market dynamics remained on the upper edge throughout the quarter. Temperature is continuously rising in the North American region, increasing energy demand in residential and industrial sectors. The pharmaceutical and cosmetics sector remained active in the second quarter governing Polysorbate prices. Furthermore, supply shortages occurred in the market as major supplying countries halted upstream production, leading to a price hike in the North American region.
Asia-Pacific
In the Asia-Pacific region, mixed sentiments in the prices of Polysorbate were observed during the second quarter of 2022. China is the primary feedstock sorbitol and oleic acid supplier in the international market. The country went under strict lockdown due to Covid curbs leading to a temporary halt in the operational rate of Polysorbate in the Asia-Pacific market. In the Indian market, the prices remained brisk as the demand from pharmaceutical sectors remained active, leading to a rise in prices. Furthermore, the supply shortage of feed with major Indian manufacturers significantly raised the prices in the regional market. Moreover, the region has suffered from extreme temperatures leading to high energy costs. Increased feedstock and energy prices governed the market sentiments of Polysorbate in the regional market.
Europe
The prices of Polysorbate in the second quarter of 2022 witnessed a hike in the European market on the back of brisked prices of feedstock sorbitol and oleic acid in the regional market. As commodity inflation occurred in the market, feed prices remained elevated, leading to high production costs. The gap between supply and demand remained huge as rough transportation of feed at the correct time occurred in the regional market. Energy costs also remained burning, leading to high production costs in the regional market. The demand for pharmaceuticals and cosmetics remained stagnant, governing the market dynamics of Polysorbate in the European market.
