For the Quarter Ending September 2024
North America
The third quarter of 2024 witnessed an incline in the prices of Polysorbate in the North American market owing to the increased production cost. As a major importer, the U.S. had felt the direct effects of price hikes from key producing nations. Supply chain bottlenecks, such as drought-related disruptions affecting the Panama Canal, reduced vessel traffic, container shortages, and longer lead times, further constrained capacity and raised transportation costs.
The market faced additional strain due to high demand during an early shipping peak season, concerns over potential U.S. port labor disputes, and elevated input and import costs pushed Polysorbate prices upward, creating a challenging environment for both importers and consumers in the pain relief medication market.
Although global price increases in key exporting regions put pressure on the U.S. Polysorbate market, modest production increases gradually revitalized supply chains. Despite rising prices, market sentiment remained positive, with continued order volumes signaling resilience to cost pressures, although intermediaries faced margin pressures due to higher input costs.
APAC
In Q3 2024, the Polysorbate market in the APAC region experienced a downward trend in prices, influenced by various factors. The market witnessed decreasing prices primarily due to a combination of high supply levels, low demand, and fluctuating production costs. The availability of cheaper alternatives and subdued demand from key industries contributed to the negative price trajectory. Additionally, disruptions in supply chains and uncertainties in global trade further impacted market dynamics, leading to a bearish sentiment. Specifically in India, the market reflected the broader regional trend with significant price changes. The correlation between price changes and seasonality was evident, with a notable decrease compared to the same quarter last year. The quarter-on-quarter change recorded a slight decline, indicating a consistent downward trend. The first half of the quarter saw prices slightly higher than the second half, showcasing a gradual decrease. Throughout the quarter, manufacturers were able to maintain the balance as the demand range of the commodity did not surpass the inventories impacting the final prices of Polysorbate in the domestic market.
Europe
European market witnessed a mixed market dynamics throughout the third quarter of 2024 as the prices dipped till the mid of the quarter and rebounded towards the end of the quarter. The European Polysorbate market experienced a notable price decline due to various global and domestic factors. As a major producer and exporter, France benefited from reduced production costs, allowing manufacturers to offer more competitive prices. This shift alleviated the previous upward pressure on global prices, which had been driven by higher export costs. Anticipating improved conditions in importing countries, buyers delayed purchases, leading to reduced demand. Simultaneously, companies began offloading inventories to minimize storage costs and avoid risks associated with product degradation. The increased supply further pushed prices down as sellers opted to destock at lower rates. Additionally, the Euro's appreciation against the US dollars contributed to market stability. Despite stable raw material costs, particularly for Corn, market sentiment remained subdued, with prices remaining low throughout the week, reflecting cautious behavior among market participants.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Polysorbate market in North America saw a significant drop in prices, influenced by several key factors. A major driver of this price reduction was the heightened demand from the frozen food and pharmaceutical industries, which ironically led to production difficulties due to the rising costs of Sorbitol, an essential feedstock. The situation has been further worsened by severe weather, especially hurricanes, which have disrupted petroleum markets and impacted crude oil production and refining operations.
Manufacturers faced the challenge of maintaining profitability amid increasing production costs. Furthermore, disruptions in transportation and logistical networks worsened the situation, causing delays and higher shipping expenses. The global rise in polysorbate demand, especially from pharmaceutical and other industrial uses, added to market pressures, resulting in a scarcity that ultimately pushed prices down to restore market balance.
Researchers have determined that, upon evaluating domestic supply the United States currently falls short in available supply and, in some instances, domestic reclamation capacity needed to achieve company goals.
APAC
In Q2 2024, the Polysorbate market in the APAC region experienced a notable downturn in prices, with several key factors contributing to this trend. The primary reason for the price decline was the increased demand from the frozen food and pharmaceutical sectors, which paradoxically resulted in production challenges due to the rising costs of Sorbitol, a crucial feedstock. Manufacturers grappled with the dual pressures of maintaining profitability amidst escalating production expenses. Additionally, disruptions in transportation and logistical networks further exacerbated the situation, leading to delays and higher shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and other industrial applications, intensified market pressures, resulting in a scarcity that naturally drove prices downward to achieve market equilibrium.
Focusing on India, the country witnessed the most significant price fluctuations within the APAC region. Seasonal factors such as the intense heatwave led to increased demand from the cold beverage and dairy sectors, further straining the supply chain. The overall pricing trend in India reflected a consistent decreasing sentiment, with a marked percentage drop compared to the previous quarter.
The price comparison between the first and second half of the quarter showed a 2% decrease, underscoring the downward trajectory. Overall, the pricing environment in Q2 2024 has been largely negative, driven by a confluence of escalating raw material costs, logistical disruptions, and heightened demand pressures.
Europe
In Q2 2024, the European Polysorbate market experienced a notable price decline due to several factors. The increased demand from the frozen food and pharmaceutical sectors significantly contributed to this trend, ironically causing production challenges due to the rising costs of Sorbitol, a key feedstock. Manufacturers struggled to maintain profitability as production expenses climbed. Additionally, transportation and logistical disruptions exacerbated the issue, leading to delays and increased shipping costs. The global surge in polysorbate demand, particularly from pharmaceutical and industrial applications, intensified market pressures, creating a scarcity that ultimately drove prices down to achieve market equilibrium.
Manufacturing in Europe's industrial heartland weakened further in July, confirming the worst fears of EU leaders worried about the direction of the bloc's economy. However, the hope that European industry would swiftly recover faded, even as the eurozone economy as a whole returned to growth. Focusing on Germany, which experienced the most substantial price fluctuations, the overall trend for benzene remained consistently negative. Seasonal factors also contributed, as the typically lower industrial activity during this time further intensified the price decline.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing dynamics of Polysorbate in the North American region were influenced by the increased demand and the production cost. Seasonal effects were observed in the regional market, with demand for Polysorbate being influenced by festive breaks and occasions, leading to demand fluctuations and subsequent pricing effects. Compared to the same quarter last year, Polysorbate prices showed a significant year-over-year increase.
The supply-demand dynamics were complicated by a global increase in polysorbate demand, particularly from pharmaceutical and other sectors, which strained the North American market. This increased demand relative to supply led to a natural price increase to rebalance the market, following the economic principle of scarcity.
Transportation network challenges, including delays and increased shipping costs, were also observed due to heightened demand. The market also felt the impact of intricate crises that influenced crucial trade routes. These included incidents in the Red Sea, geopolitical tensions in the Black Sea, and the effects of climate change on the Panama Canal.
APAC
In Q1 2024, the pricing dynamics of Polysorbate in the APAC region were influenced by a variety of factors beyond the conventional top three. The Indian market experienced seasonality effects, with the demand for Polysorbate influenced by festive breaks and occasions. This led to fluctuations in demand and subsequently affected pricing. When compared to the same quarter last year, Polysorbate prices showed a significant year-over-year increase.
Furthermore, there was a noticeable price change from the last quarter of 2023, indicating a continued upward trend. However, it is important to note that no specific comparison between the first and second halves of the quarter was provided. Ultimately, the final quarter's price for Polysorbate CFR Kandla in India was USD 1404/MT.
The supply-demand dynamics were complicated by a worldwide rise in polysorbate demand, particularly from pharmaceutical and other sectors, placing strain on the Indian market. With demand outstripping supply, the economic principle of scarcity resulted in a natural price increase to rebalance the market. Furthermore, there were issues in transportation networks, causing delays and increased shipping costs due to heightened demand. Additionally, the increasing prices of raw materials added to production expenses, providing favorable cost support to the polysorbate market in India.
Europe
The overall market dynamics of polysorbate in the European market showcase mixed market sentiments impacted by the overall demand outlook for the commodity from the food, beverages, and pharmaceutical sectors in the first quarter. Seasonal patterns affected the regional market, with demand for Polysorbate fluctuating, causing price changes. Compared to the same quarter last year, there was a notable year-over-year rise in Polysorbate prices. The supply-demand balance was complicated by a global increase in demand, especially from pharmaceutical and other industries, which strained the European market. This imbalance resulted in a price increase to restore equilibrium, following the economic principle of scarcity. Challenges in the transportation network, such as delays and higher shipping costs, were also noted due to increased demand.
For the Quarter Ending December 2023
North America
Polysorbate prices in the North American market declined throughout Q4 2023 owing to the weak demand from the pharmaceutical and food sectors. Moreover, global energy prices remained constant, leading to reduced production costs.
The main factor that led to this decline was the ample supply of Polysorbate within the domestic market. Additionally, the primary raw material for Polysorbate, Corn starch, had shown recent susceptibility. Fluctuations in prices occurred in the domestic corn market, and due to the low-cost raw material environment, enterprises successively lowered the factory price of starch, resulting in a modest downturn in domestic corn starch market prices.
The strong USD posed a challenge for international suppliers to compete with China's yuan protection and the appreciating dollar, negatively impacting trade with import-dependent nations. Concerning ocean trade, the North American market maintained a fair degree of stability. Longer wait times at ports were observed as colder air masses and weather conditions affected Atlantic ports.
APAC
In the APAC region, the fourth quarter of 2023 saw various factors influencing the Polysorbate market and prices. Initially, sluggish demand from the frozen food and pharmaceutical industries had a notable impact on the market. This was further compounded by a reduced consumption rate of the commodity in the pharmaceutical sector. Additionally, the availability of alternative options in the domestic market further diminished the demand volume and consumption rate of Polysorbate. Specifically in India, there were significant price changes during this quarter. Polysorbate prices in the Indian market continued to decrease due to slow demand and reduced consumption rates. The lowered prices of feedstock, such as sorbitol and fatty acids, in the domestic market also affected the overall production cost and delivery rate of the commodity in India. Moreover, the continuous drop in temperature decreased the demand volume of Polysorbate from the frozen food and personal care sectors. The Indian currency also depreciated against the USD, contributing to the overall market dynamics. The commodity prices fluctuated throughout the quarter, influenced by factors such as feedstock prices, demand from various industries, and currency fluctuations. The quarter concluded with a Polysorbate price of USD 1406/MT CFR Kandla in India.
Europe
In the European market during Q4, polysorbate prices experienced a southward trajectory due to volatile market sentiment and a decline in economic conditions within the region. Factors such as diminished demand from the pharmaceutical and retail sectors, driven by supply chain disruptions, contributed to a decrease in local market prices. Additionally, concerns regarding deteriorating economic conditions and fluctuating energy costs influenced the European market. The robust performance of the spot market encouraged investors to expand their investments. Simultaneously, restricted supplies from major exporting countries played a pivotal role in impacting the final prices of polysorbate. Concurrently, a destocking trend resulted in substantial decreases in order book volumes, further impacting demand. In the pharmaceutical and food sectors, there was sluggish demand as the availability of alternative and sustainable options reduced the utilization of polysorbate in the regional market. Moreover, the decision by the European Central Bank (ECB) to raise interest rates had a ripple effect on commodity prices, prompting buyers to exercise caution when placing larger orders.
