For the Quarter Ending September 2024
North America
The North American Gelatin market exhibited remarkable stability during the third quarter of 2024, characterized by consistent price levels across the region. This stability was underpinned by a well-balanced market environment where multiple factors worked in harmony. The supply chain demonstrated resilience, operating without significant disruptions, while production facilities maintained steady output levels throughout the quarter.
The USA market, typically the most dynamic in the region, reflected this broader stability, with Gelatin prices showing minimal fluctuation. The market's steadiness was particularly evident in the price correlation between the first and second halves of the quarter, which remained at 0%, indicating a highly consistent pricing pattern. The quarter-end price for Gelatin (BS - 150) Food grade CFR Houston settled at USD 7435/MT, representing a modest 2% decline from the previous quarter.
This stability was further supported by moderate demand from end-users, which aligned well with available supply. The economic conditions remained favorable, contributing to the market's equilibrium. When compared to the same period in the previous year, prices maintained their stability, reinforcing the market's steady nature.
APAC
Throughout Q3 2024, the Gelatin market in the APAC region witnessed a notable decrease in prices, largely influenced by several key factors. The market sentiment was predominantly negative, with significant downward pressure on prices. Factors such as weakening consumer demand, global shipping disruptions, and economic uncertainties played a pivotal role in driving prices lower. The overall trend in Q3 indicated a bearish market outlook, with prices consistently on a downward trajectory.
In China, the market experienced the most substantial price changes during the quarter. The pricing environment was characterized by high supply levels, low demand, and logistical challenges due to the Red Sea crisis. These factors led to a significant decrease in Gelatin prices in China, aligning with the overall downward trend in the APAC region.
The quarter saw a significant -7% decrease from the previous quarter, with prices dropping by -4% between the first and second half of Q3. The quarter-ending price for Gelatin (BS - 150) Food grade FOB Shanghai in China was recorded at USD 6680/MT, reflecting the prevailing negative pricing environment.
Europe
In Q3 2024, the Gelatin market in Europe experienced a significant downturn in prices, influenced by several key factors. Economic uncertainties, weakening consumer sentiment, and logistical disruptions played pivotal roles in driving market prices downward. The persistent economic challenges across the region led to subdued demand, exacerbating the pricing decline. Additionally, disruptions in supply chains, coupled with rising shipping costs, further complicated the market landscape, impacting both buyers and suppliers. In France, the most notable price changes were observed, reflecting the broader European trend. The quarter recorded a substantial -5% decrease from the previous quarter, underscoring the challenging market conditions. The comparison between the first and second half of the quarter revealed a -2% decline, highlighting the sustained negative trajectory in prices. Ending the quarter at USD 9730/MT of Gelatin (BS - 200) Pharma Grade FOB Fos-sur-Mer in France, the pricing environment remained predominantly negative, characterized by a consistent decrease in market sentiment. Notable disruptions during the quarter included plant shutdowns at Nitta Gelatin USA, Inc. and Bamni Proteins Ltd.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a noticeable decline in Gelatin prices within the North American market, driven primarily by a confluence of factors that exerted downward pressure on market dynamics. The quarter saw a significant contraction in business activity, characterized by a marked reduction in new orders and a shrinking backlog, indicative of a broader economic slowdown. Weaker-than-expected demand, combined with persistent inflationary pressures, further eroded consumer spending power, contributing to a softening in Gelatin prices.
Additionally, strategic decisions by importers to frontload imports in anticipation of the peak season led to an oversupply, exacerbating the price decline. This oversupply was compounded by challenges such as port congestion and geopolitical tensions, which disrupted supply chains and prompted bulk shipping at reduced rates. In the USA, the most pronounced price changes were observed, reflecting overall trends of declining demand and ample supply. The seasonal spike in demand typically associated with mid-year preparations was subdued, reflecting a cautious economic outlook. Compared to the previous quarter, prices decreased by -1%, and a further -1% drop was noted between the first and second halves of the quarter.
The latest quarter-ending price for Gelatin (BS - 150) Food grade CFR Houston was recorded at USD 7510/MT, underscoring a persistently negative pricing environment. The absence of reported plant shutdowns or significant disruptions adds clarity to the supply glut observed. Overall, the quarter has been characterized by a negative pricing sentiment, driven by a complex interplay of subdued economic activity, strategic market maneuvers, and overarching inflationary constraints.
APAC
In Q2 2024, the Gelatin market in the APAC region experienced a pronounced decline in prices, driven by a confluence of factors. Economic challenges, including subdued consumer confidence, persistently high interest rates, and inflationary pressures, significantly dampened demand. Persistent deflationary pressures led to reduced operational expenses, which were passed on to consumers, thereby lowering product prices. Market participants, grappling with oversupply, sought to clear inventories at lower quotations, compounded by insufficient new orders both domestically and internationally. Additionally, geopolitical tensions and logistical disruptions added layers of uncertainty, further reducing market activity. In South Korea, which experienced the most significant price changes, the market witnessed a clear downward trajectory. The manufacturing sector faced stagnant consumer confidence due to elevated interest rates and ongoing inflation, leading to cautious spending patterns. Geopolitical tensions, particularly those stemming from Middle Eastern conflicts, exacerbated market instability, prompting buyers to delay or reduce orders. The overall market sentiment remained bearish, with suppliers adjusting prices downward to manage excess inventory. Compared to the previous quarter in 2024, prices dropped by 1%, showcasing a discernible decline. The notable price difference between the first and second half of the quarter was recorded at -2%, reflecting the accelerating negative sentiment. The quarter concluded with the price of Gelatin (BS - 150) Food grade CFR Busan settling at USD 7350/MT, underlining a consistently negative pricing environment throughout Q2. The prevalent factors collectively signified a challenging quarter for the Gelatin market in South Korea, driven by both demand-side weaknesses and supply-side adjustments, reinforcing a distinctly negative market outlook.
Europe
The second quarter of 2024 has seen a notable decline in Gelatin prices across the Europe region, influenced by multiple intricate factors. A sluggish economic recovery, coupled with subdued consumer demand, has significantly impacted market dynamics. Inflationary pressures, though easing, have continued to suppress consumer spending, while geopolitical uncertainties, especially the escalating conflict in the Middle East, have exacerbated market apprehensions. Furthermore, logistical bottlenecks and prolonged lead times have strained supply chains, resulting in increased operational costs. Additionally, the European Central Bank's decision to maintain high-interest rates has further curtailed consumer expenditure, reducing overall market demand. This cautious economic environment has compelled businesses to adopt more conservative pricing strategies, contributing to a persistent decline in Gelatin prices. Focusing on Germany, the nation experienced the most pronounced price changes during this quarter. The economic downturn, marked by weak industrial orders and consumer sentiment, has led to a surplus of Gelatin inventories, driving prices downward. Seasonal demand fluctuations and a cautious approach by consumers have further intensified these trends. The price decline from the preceding quarter is recorded at 0%, with a marked -1% difference between the first and second halves of the quarter, underscoring the consistent downward trajectory. This quarter concluded with Gelatin (BS - 160) Pharma Grade FOB Hamburg priced at USD 8750/MT, reflecting an overall negative pricing environment.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing dynamics of Gelatin in the North America region, particularly in the USA, were shaped by a diverse range of factors extending beyond traditional market drivers. Throughout this period, the pricing trend for Gelatin in the USA exhibited notable volatility and fluctuations, characterized by a combination of upward and downward movements.
The quarter began with a decline in prices, primarily attributed to cautious consumer sentiment amid sluggish retail sales and a backdrop of rising inflation. This cautious stance among consumers translated into reduced spending, consequently leading to a decrease in demand for Gelatin. Moreover, uncertainties stemming from inflationary pressures prompted consumers to adopt a more conservative financial approach, further dampening demand. However, prices experienced a notable increase in February and March, driven by an improvement in business sentiment fueled by a steady rise in new orders from end-users. This surge in demand outpaced the available supply in the domestic market, thereby driving Gelatin prices upwards. Additionally, challenges emerged in the supply chain, with disruptions at critical shipping chokepoints such as the Red Sea and the Panama Canal causing delays in product delivery, including Gelatin and other goods. These disruptions contributed to supply constraints in the USA market, further pushing prices upward.
Overall, the pricing environment for Gelatin in Q1 2024 witnessed fluctuations influenced by a combination of demand dynamics, supply chain disruptions, and prevailing economic conditions. However, it is important to note that the latest quarter-ending price for Gelatin (BS - 150) Food grade CFR Houston in the USA was USD 7780/MT.
Asia Pacific
In Q1 2024, Gelatin prices in the APAC region experienced fluctuations, with South Korea being the most pronounced market. The overall trend in Gelatin pricing was influenced by a range of factors beyond the conventional top three. While demand from downstream industries such as food and pharmaceuticals played a significant role in driving prices, other factors also impacted the market dynamics. Prices surged throughout the quarter due to improvement in business sentiments, fueled by a notable increase in new orders and inquiries. The depreciation of the South Korean won against the USD increased import costs, contributing to price increases. Additionally, inflationary pressures, particularly from energy prices, imposed additional operational costs on businesses, leading to higher prices. The market situation in South Korea was characterized by a surge in demand, surpassing available supply levels, resulting in price hikes. Anticipating a continued uptick in demand, market stakeholders strategically prioritized inventory replenishment and sought to capitalize on the prevailing market conditions by selling existing stocks at higher prices to optimize profitability. Finally, the final quarter's price for Gelatin (BS - 150) Food grade CFR Busan in South Korea was USD 7530/MT.
Europe
In the first quarter of 2024, the pricing dynamics of Gelatin in Europe unfolded amidst a complex landscape influenced by various factors. Initially, prices saw an uptick driven by geopolitical tensions, logistical challenges, and constrained inventories. Heightened demand from the end-sectors further contributed to this increase. However, prolonged disruptions in the Red Sea complicated trade routes between Asia and Europe, leading to increased freight costs that impacted the pricing scenario of Gelatin, especially in Germany. As the quarter progressed, prices experienced a decline in March. This decline was attributed to persistently lackluster performance in new industrial orders, coupled with insufficient domestic demand and a relatively high backlog. Additionally, the central bank's decision to maintain existing interest rates added complexity to the market environment, further straining consumers' purchasing power. In response, market suppliers and traders sought to address excess inventories amidst sluggish domestic demand, navigating through the evolving market landscape. Overall, the pricing dynamics of Gelatin in Europe during this period reflected the interplay of various factors, highlighting the challenges and intricacies of the market. Finally, the latest quarter-ending price for Gelatin (BS - 160) Pharma Grade FOB Hamburg in Germany was USD 8850/MT.
For the Quarter Ending December 2023
North America
The Gelatin market in North America encountered various factors affecting prices in the fourth quarter of 2023. Initially, prices experienced a moderate increase driven by sustained demand from the food and pharmaceutical sectors. However, they later declined due to elevated interest rates and inflationary pressures, leading to a reduction in consumers' purchasing power.
Specifically, the Gelatin market in the USA witnessed a price increase in October, with Gelatin (BS - 150) Food grade and Gelatine (BS - 220) Food grade prices rising by 0.78% and 0.55%, respectively. The surge in prices was driven by increased demand from end-users, limited inventories, and higher transportation costs. However, prices experienced a decline in November and December due to a global decrease in demand for Gelatin. Faced with excess supply and the potential for reduced demand, manufacturers and distributors responded by offering discounted quotations to clear surplus inventory, especially towards the end of the year.
In terms of price comparison, the Gelatin prices in the current quarter increased by 14% compared to the same quarter in the previous year. However, there was a decrease of 3% in prices from the previous quarter. The price comparison between the first and second half of the quarter also showed a decline of 3%. The quarter ending price for Gelatin (BS - 150) Food grade CFR Houston in the USA is USD 7520/MT.
APAC
In the fourth quarter of 2023, the Gelatin market in the APAC region experienced various factors that impacted prices and market dynamics. Initially, prices surged as a decline in imports from key exporting countries led to constrained supply, coupled with sustained demand in the domestic market. Afterwards, Gelatin prices were impacted by subdued consumer sentiments, attributed to economic slowdown and high interest rates. This resulted in low demand for Gelatin in the food and beverage industry. In South Korea, Gelatin prices experienced notable fluctuations, rising in October due to the rapid acceleration in energy prices and reduced imports in the domestic market. However, prices declined in November and December, influenced by factors such as shifting consumer preferences, economic slowdown, and competition from alternative ingredients. Overall, Gelatin prices in the APAC region during Q4 2023 were shaped by a combination of factors, including consumer sentiments, demand and supply dynamics, and evolving market conditions. The latest price of Gelatin (BS - 150) Food grade in South Korea at the end of the quarter was USD 7230/MT CFR Busan.
Europe
The Gelatin market in Europe during the fourth quarter of 2023 was influenced by several key factors. Firstly, there was a decrease in overall demand for Gelatin due to subdued consumer spending and reduced consumption. This was attributed to the persistently high interest rates set by the European Central Bank, which limited purchasing power and dampened consumer sentiments. Additionally, the availability of alternative ingredients such as agar and pectin further contributed to lower demand in the market. The ample supply of Gelatin in the European market was maintained, driven by the strengthening of the Euro against the US dollar, making exports more expensive and resulting in a slowdown in exports to other nations. In Germany, the largest economy in Europe, Gelatin prices experienced a significant decrease of 7.62% in September compared to the previous month. This decline can be attributed to the high inflation rates in the country, driven by rising food and energy prices. The manufacturing sector in Germany also faced challenges, with a decline in demand and production levels. The quarter ending price for Gelatin (BS - 160) Pharma Grade FOB Hamburg in Germany was USD 8530/MT.
