With Steady Feedstock Costs, Glyoxylic Acid Prices Show Stable Trend Across the Globe

Glyoxylic Acid prices maintained a static trend globally during April 2023 due to the modest feedstock Nitric Acid costs, limited production in the face of slow global demand, and uncertain upstream Crude Oil values. The fluctuations in Crude Oil costs eroded the profit margins of the market players globally and impacted production, resulting in muted demand sentiments amongst the market players towards the termination of Q1 2023.

Despite lower prices of the feedstock Nitric Acid, Glyoxylic Acid prices remained unchanged in the week ending 28th April 2023 throughout North America. The buying sentiments in the domestic market remained subdued as the traders approached the wait-and-see strategy to understand the market outlook. As a result, the cosmetic industry's offers for Glyoxylic Acid continued to be silent in the region.

Glyoxylic Acid prices were stable this week in Europe due to the stagnant feedstock Nitric Acid and upstream costs. The abundance of stocks in the region has impacted the pricing dynamics of the commodity this week as offtakes remained steady. Meanwhile, domestic offers in the German cosmetic industry grew steadily in the last week of April and supported the final Glyoxylic Acid prices in the European market.

Similarly, Asian Glyoxylic Acid prices were assessed as stable compared to the previous week, owing to the firm feedstock prices coupled with unchanged Nitric Acid price movement and moderate demand fundamentals in the market. Downstream demand was weak in Asia, and high levels of inventories affected the price movement of Glyoxylic Acid in the APAC market. As per the latest ChemAnalyst, buying activities were limited, as discussions for April cargoes are yet to initiate for Glyoxylic Acid.

As per ChemAnalyst, the Glyoxylic Acid prices are expected to remain stable on a bearish note as there is slow positive demand anticipation in the global market for the product at the end of Q2 of 2023. Furthermore, purchasers are acquiring the material on an as-needed basis. Additionally, Glyoxylic Acid production will likely remain limited due to the elevation in upstream Crude Oil costs, diminishing the supply-demand gap towards the end of Q2 2023.