High Methoxyl (HM) Pectin Prices Continue to Grow Stronger in the USA

CFR, Los Angeles: In the United States, the prices of High Methoxyl Pectin have witnessed a continuous upsurged propensity even in August, with an inclination of 2.35 percent. China's extended lockdown impeded local and foreign trade, restraining the overall logistic market, such as transportation, availability of sufficient stock, and production capacity. Furthermore, rising demand from downstream pharmaceuticals and cosmetic sectors has showcased a strong market sentiment.

Growing domestic demand and limited supply supported the increased prices of High Methoxyl Pectin in the US domestic market. Also, the local merchants were pressured to expand their stocks to prevent the loss of profit margins. Moreover, in terms of upstream, the European region, mainly Germany and Mexico, has a higher demand for citrus fruits because the summer season is at its peak, which is not favoring their production on a larger scale as per the demands due to lack of rainfall and dried weather. As a result, it was noticed that citrus fruits were majorly imported from South Africa, Peru, and Uruguay in the last few months. Additionally, the surging demand and quotations for various downstream products prompted European industrialists to simultaneously expand their manufacturing process and export momentum to the USA.

A Russian invasion of Ukraine also affected the energy sector and exuberated logistic charges, leading to port congestion, which positively supported upstream and downstream market sentiments.

Also, heightened downstream demand, scarcity of stocks from domestic merchants, and delayed consignments from various exporting countries were some of the primary factors that significantly resulted in the escalation of HM Pectin prices in the USA.

As per the chemanalyst, the High Methoxyl Pectin market is expected to accompany a similar market trend in forthcoming months in the USA. Geopolitical tension will likely support the market dynamics of HM Pectin positively. Exporting momentum might remain consistent, keeping the demand-supply rate at a higher side.