Glyoxylic Acid Prices Continue to Decline in the USA Amidst Falling Feedstock Cost But Soar in Europe

The market dynamics of Glyoxylic Acid in the European region and in the North American region showcased mixed trends. The upward trend of Glyoxylic Acid in the European Market was attributed to several factors that influenced the market dynamics, including firm demand from the downstream Cosmetic industry and increased procurement orders from the domestic and international markets. Additionally, low production rates and healthy demand paved the way for widened demand-supply gap resulting in the current price trend. However, a declining trend in prices of Glyoxylic Acid was observed in the USA, majorly due to declined demand for the product from the major importing countries Canada and Mexico.

The USA market has been grappling with price fluctuations for an extended period, and in May 2023, the price of Glyoxylic Acid fell by USD 22/MT. This decline was primarily due to decreasing prices of Nitric Acid, an essential feedstock to produce Glyoxylic Acid, and declined requirements from the downstream cosmetic industry. Further exports of Glyoxylic Acid to other American countries like Canada and Mexico traded weak with deteriorating market fundamentals. Fluctuation in prices of upstream products Crude oil impacted the production activities and resulted in a negative market outlook.

Considering data from the US Bureau of Labor and Statistics, it was observed that the nation's Consumer Price Index (CPI) remained stable this month with a marginal rise of 0.1%.

In contrast, prices of Glyoxylic Acid showed an upward trajectory in European countries in May 2023. The prices rose this month by 0.4% in the German market, driven by rising demand from the cosmetic industry. However, the price of feedstock material Nitric Acid declined. Additionally, increased procurement orders from other importing European countries like Belgium, Italy, and France supported the increasing price trend. The German Federal Statistical Office data indicated that the Consumer Price Index (CPI) declined by 0.1% in May 2023, and inflation rose by 6.1% compared to the previous month.

As per the ChemAnalyst database, it is anticipated that the prices of Glyoxylic Acid might decline in the coming months in both European and North American countries as the demand from domestic and international markets may remain weak. Furthermore, end-user markets are acquiring material on an as-needed basis. Additionally, the prices of feedstock material Nitric Acid are expected to decline. However, the increase in Crude oil price may lower the production rate paving the way for widened demand-supply gap and impacting Glyoxylic Acid prices.