For the Quarter Ending December 2024
North America
The U.S. Sorbitol Market in Q4 2024 witnessed fluctuating trends, culminating in a notable price increase by December. In early Q4, Sorbitol prices surged due to strong demand, declining inventories, and supply chain disruptions, exacerbated by China’s Golden Week holiday and higher import costs linked to a weaker U.S. dollar. However, mid-quarter saw a downturn, with prices dropping due to oversupply, weak trading activity, and soft Corn markets. Manufacturers offered discounts to clear excess inventory, but market sentiment remained subdued.
By December, the market reversed its trajectory, driven by increased reliance on imports, higher Asian export prices, and strong downstream demand in the U.S. Production cuts and limited quotations from Chinese suppliers intensified competition, pushing prices upward. Logistics challenges, including port congestion and rising freight costs, compounded the price hike.
Overall, Q4 showcased a volatile market marked by intermittent price declines in November, followed by significant gains in December. The quarter closed with Sorbitol prices rising 2.06%, reflecting robust Western demand, constrained supply, and strategic pricing by manufacturers to navigate ongoing market challenges. Industry stakeholders must remain vigilant amidst such dynamic trends.
Asia Pacific
The Sorbitol market in Q4 2024 exhibited a predominantly downward price trend, characterized by significant supply-demand imbalances and fluctuating global economic conditions, before showing signs of recovery in December.
In October, Sorbitol prices displayed initial stability, influenced by balanced market conditions and the Chinese Golden Week holiday. However, by mid-October, an oversupply situation led to a gradual price decline, exacerbated by weak downstream demand and a bearish global economic environment. The downward trend persisted into November, with Sorbitol prices dropping further due to increased domestic production, reduced Chinese exports, and declining crude oil and corn prices. These factors created a buyer's market, compelling suppliers to adopt aggressive destocking strategies to manage surplus inventory.
The trend shifted in December, with Sorbitol prices rebounding due to tightening supply, heightened export demand, and strategic inventory management. Strong procurement activities following holiday seasons and bullish corn prices further bolstered market dynamics. By late December, Sorbitol prices reached $704/MT FOB Shanghai, reflecting a recovery driven by robust demand and improved market sentiment, setting a more optimistic tone heading into 2025.
Europe
The Sorbitol market experienced significant volatility in Q4 2024, marked by an initial price surge in October due to robust demand and constrained supply, followed by a sharp decline in November and December due to subdued demand and oversupply.
In October, Sorbitol prices surged, driven by high domestic and international demand, tight inventory levels, and rising production costs linked to escalating corn prices. Prices peaked at $1,540/MT FOB Le Havre by the month's end, despite challenges like elevated freight rates and global supply chain disruptions. However, French exporters benefitted from strong Asian demand and limited corn supply due to adverse weather in Brazil and the Ukraine conflict.
By November, the market reversed, with prices falling to $1,400/MT by month-end, reflecting weaker regional demand, oversupply, and reduced logistics costs. December continued this bearish trend, with prices dropping to $1,370/MT, driven by increased corn production forecasts and aggressive global competition. The Q4 Sorbitol market exhibited a downward trajectory post-October, highlighting the dynamic interplay of supply-demand fluctuations, geopolitical factors, and cost pressures.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Sorbitol market experienced a significant uptrend in prices, with the USA leading the surge. This quarter has been characterized by a multitude of factors influencing market dynamics. Rising demand both domestically and in export markets has been a key driver, fueled by supply challenges from major exporting regions, increased production costs, and geopolitical tensions.
The weakening US dollar against other currencies, particularly the Chinese yuan, has further elevated import costs, amplifying the price escalation. Geopolitical instabilities globally, including in the Middle East, have also contributed to heightened crude oil prices, adding to overall supply chain expenses. Market activity intensified due to low inventory levels, pre-festival purchasing, and anticipated closures, while maintenance shutdowns at critical production facilities further disrupted global supply. Supply constraints from China, a key exporter, worsened the situation due to higher production costs, natural disasters, and geopolitical events.
The quarter-ending price of USD 963/MT of Sorbitol 70% Solution CFR New York with an average quarterly incline of 5.02% in the USA underlines the positive pricing environment prevalent throughout Q3 2024.
Asia Pacific
The third quarter of 2024 has been a period of significant price increases for Sorbitol in the APAC region. Several key factors have influenced market prices during this time. Tight supply conditions, consistent demand from various industries, and disruptions in production regions due to adverse weather have all contributed to the upward trajectory of prices.
In China specifically, the market has experienced the most substantial price changes, driven by strong demand, limited product availability, extreme weather conditions, and currency fluctuations. The quarter-ending price for Sorbitol in China stands at USD 731/MT, with an average quarterly inline of 2.49% reflecting a positive and increasing pricing environment in the APAC region. The appreciation of the Chinese yuan against the U.S. dollar further bolstered exports, as traders capitalized on the stronger currency by selling at higher prices in global markets.
Additionally, after a sustained period of declining prices, market participants revised their quotations upward to correct the market trajectory. The raw material corn market also saw price hikes, while U.S. corn exports to China dropped by 62.8% year-on-year. In preparation for the upcoming planting season, some market participants began procurement activities, further driving the market upward.
Europe
Throughout Q3 2024, the Sorbitol pricing landscape in Europe witnessed a significant uptrend. This surge was primarily fueled by heightened global demand, both domestically and in major import markets, leading to a tightening of supply chains and pushing prices upwards. Rising production costs, especially due to escalating raw material expenses, notably for corn, further contributed to the price increments.
Additionally, geopolitical tensions, particularly in key oil-producing regions, resulted in higher crude oil prices, elevating supply chain costs and adding pressure on Sorbitol prices. Furthermore, ocean carriers operating in larger headhaul trades from France successfully pushed freight rates higher due to tight vessel space availability, benefiting exporters and allowing them to command stronger pricing in a constrained global market.
France, as a prominent player in the Sorbitol market, experienced the most substantial price changes during the quarter. By the end of Q3 2024, Sorbitol prices in France reached USD 1380 per metric ton FOB Le Havre, with an average quarterly incline of 1.78% underlining a positive and upward-trending pricing environment in the region.
For the Quarter Ending June 2024
North America
In Q2 2024, the Sorbitol market in North America demonstrated a persistent upward pricing trend, primarily driven by escalating operational costs, particularly in energy and raw materials. The sector faced significant production expense increases due to these rising costs. Concurrently, logistical challenges, such as shipment delays and higher freight charges, further exacerbated supply chain strains, thereby contributing to the overall price increase. Geopolitical tensions and environmental disruptions also amplified cost pressures, tightening the market further.
Within the USA, which experienced the most pronounced price adjustments, the general trend was a steady ascent in Sorbitol prices. Seasonal demand fluctuations and effective inventory management practices played pivotal roles in this price trajectory. The market saw moderate price increases in the first half of the quarter, which accelerated in the latter half, culminating in a 1% rise. This reflects the influence of seasonal market dynamics and renewed purchasing activities.
By the end of the quarter, Sorbitol 70% Solution CFR New York was priced at USD 826/MT, with a quarterly average incline of 0.50%. This indicates a stable and positive pricing environment overall. The sustained price increase throughout Q2 2024 can be attributed to a combination of rising costs, ongoing supply chain disruptions, and strategic market adjustments, suggesting a cautiously optimistic outlook for market participants.
Asia Pacific
In Q2 2024, the Sorbitol market in the APAC region maintained stable pricing due to several key factors. Raw material costs, particularly for corn starch, remained consistent, leading to stable production expenses. Additionally, demand across industries such as pharmaceuticals and personal care was balanced, with no extreme fluctuations in consumption. This equilibrium ensured that inventory levels were well-managed, effectively preventing significant price variations.
In China, while the broader market showed stability, there were notable price adjustments influenced by seasonal factors. Manufacturers proactively adjusted stockpiles in anticipation of summer shutdowns, which played a crucial role in managing product quality. Despite these strategic adjustments, the price difference between the beginning and end of the quarter was negligible, indicating a stable pricing trend throughout the period.
By the end of Q2, Sorbitol 70% Solution FOB Shanghai was priced at USD 676/MT, reflecting a modest quarterly increase of 0.77%. This stability in pricing, coupled with balanced supply and demand and effective inventory management, underscores a resilient market environment despite minor fluctuations.
Europe
In the second quarter of 2024, sorbitol prices across Europe have seen a notable increase, driven by a combination of factors including heightened downstream demand, rising production costs, and ongoing supply chain disruptions. The persistent rise in raw material costs, especially corn starch, has exerted upward pressure on manufacturing expenses. Furthermore, proactive procurement strategies and strategic inventory management by manufacturers have significantly influenced market conditions.
France, in particular, has experienced the most pronounced price adjustments. The market trend has been positively skewed, with seasonal factors and overall market optimism contributing to a 5% price increase between the first and second halves of the quarter. This regional trend highlights France's central role in the broader European sorbitol market dynamics.
As of the quarter's end, the price of Sorbitol 70% Solution FOB Le Havre has reached USD 1340/MT, marking an average quarterly increase of 0.84%. This reflects a generally strong pricing environment, underpinned by solid downstream demand, stable raw material costs, and strategic supplier actions. Despite minor fluctuations, the overall market sentiment remains positive, indicating a stable to favorable outlook for the sorbitol sector in Europe.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Sorbitol market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Sorbitol priced at USD 820/MT CFR New York, showing an average quarterly increase of 2.73%.
A significant driver of these price changes was the sustained demand from the downstream sector, prompting bulk orders and subsequent proactive price hikes by market participants. Geopolitical tensions and trade disruptions, such as disturbances in crucial shipping routes like the Red Sea and the Suez Canal, also played a role in the price volatility. These disruptions led to higher freight charges and logistical bottlenecks, further impacting pricing dynamics. North America's heavy reliance on Sorbitol imports, particularly from China, was a notable factor influencing market trends. Fluctuations in Chinese production, including pauses during the Lunar New Year and Spring Festival, resulted in constrained shipments and limited US inventories, prompting market players to adjust their quotes to protect profit margins.
Towards the end of the quarter, Sorbitol prices experienced a decline, though this shift did not significantly alter the overall trajectory. As the quarter ended, market participants engaged in inventory management practices to destock existing inventories, preparing for replenishment with fresh supplies. This strategic pricing adjustment aimed to optimize inventory levels and maintain liquidity within the market, creating a foundation for a more sustainable trading environment going forward.
Asia Pacific
In the first quarter of 2024, the pricing of Sorbitol in the Asia-Pacific (APAC) region remained mostly stable, with some fluctuations in specific countries. In conclusion, the latest quarter-ending price for Sorbitol in China was USD 665/MT FOB Shanghai with an average quarterly incline of 0.06%. The demand for Sorbitol from industries like pharmaceuticals and food processing stayed consistent, supporting prices and maintaining a positive market sentiment. In February 2024, prices increased due to higher demand and low inventories, exacerbated by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further reduced availability.
After the holidays, there was a surge in purchasing both domestically and internationally, driven by consumer confidence and favorable sentiment, with traders benefiting from the Chinese currency depreciation against the USD. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders in anticipation of shortages. Additionally, the increase in raw material Corn starch prices also contributed to the rise in Sorbitol prices. In March, sustained demand from Chinese end-users led to higher Corn starch prices, prompting increased production. When the market reopened after the holidays, prices surged due to the production ramp-up to meet domestic demand.
The pricing trends for Sorbitol in the APAC region in the first quarter of 2024 were generally stable, although prices did decrease at the start of the quarter. This drop was influenced by year-end destocking activities from the previous month, which had a notable impact on market dynamics. Additionally, weakened demand downstream and sufficient inventories put pressure on Sorbitol pricing. In the Chinese market specifically, Corn starch prices also saw a decline due to weak demand.
Europe
During the first quarter of 2024, Sorbitol pricing in the European market, specifically FOB Le Havre in France, underwent fluctuations influenced by several factors. The quarter concluded with Sorbitol priced at USD 1280/MT, marking a modest average quarterly incline of 4.91%.
The Sorbitol market generally experienced an upward price trend, mainly due to heightened demand from downstream sectors. This increased demand placed substantial pressure on prices. Moreover, global supply chain disruptions, particularly in the Red Sea region, caused shipment delays and extended lead times. These disruptions, combined with shortages of crucial goods and materials, contributed to the price surge. Currency fluctuations, notably the Euro's depreciation against the dollar, added another layer of complexity. The rising costs of imported materials denominated in USD affected traders and buyers, compelling them to accept goods at higher prices amidst escalating freight charges. Additionally, the increase in downstream sector demand, limited stock availability, and supply chain disruptions all played roles in driving prices up.
Market participants adjusted their pricing strategies to maximize profit margins, although prices did decrease towards the end of Q1 2024 marginally due to improved product availability, easing concerns about supply shortages and exerting downward pressure on prices. Despite these developments, challenges persist due to low demand, sluggish purchasing activity, weakened consumer confidence, and decreased freight costs further influencing prices.
