In Germany, Dextrose Prices Recover to a Positive Market Outlook

CFR Hamburg: Following a month-over-month fall, the Dextrose market in Germany experienced an increasing trend. Increased inquiries from the downstream food and pharmaceutical industries have severely hampered Dextrose's growth in the international market. Several issues, including rising energy prices, COVID-19 restrictions, and rising inflation, have impacted the market sentiments in Europe.

Manufacturers are forced to increase production to meet up with the increased demand from their downstream customers due to falling inventories. More excellent operating rates and higher energy prices further supported the price of Dextrose in the European region. Variable costs on production values increased due to rising inflation and high energy prices in the context of imminent energy crises. The explosion of the Nord 1 Stream pipeline, which carries natural gas from Russia to Germany, has further impacted the upward trend of Dextrose. German purchasers started trading, driving up the price of Dextrose due to recent increases in orders and a shortage of supply in the European market. The region also faced a labor crisis due to transportation problems which were brought on by inflation. Additionally, port backlogs spurred on by cargo bunching and cancellation actions hindered the continent's commercial services.

Contrarily, the Covid limits in the Chinese market impacted trading activities since the demand was more than usual. Russian-Ukrainian war's disruption of trade momentum caused supplies to be delayed, and activities to reroute traffic also maintained the cost of Dextrose higher than anticipated. This month, Dextrose prices in Germany recently surged by 2.37%, defying the downward trend.

Dextrose demand is expected to increase due to the end-user sector's consistent growth in the market, according to ChemAnalyst. Although businesses have been asked to reduce their electricity use to conserve energy for the residential sector throughout the winter, output rates will still be moderate due to the energy crisis. Nevertheless, it is anticipated that supply difficulties will persist in the next quarter, likely to support Dextrose price trends in the European region significantly.