3-Hydroxypropanoic Acid Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of 3-Hydroxypropanoic Acid in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

3-Hydroxypropanoic Acid Price Trend for the Second Half of 2023

Asia

The price trend of 3-hydroxypropanoic acid oscillated with the cost of its feedstock materials in both the third and fourth quarters of 2023. In the later part of the third quarter, the prices exhibited comparative stability due to a certain improvement in demand and a rise in the prices of propanoic acid. However, in the fourth quarter, fluctuations arose in the food and beverages industries that limited the growth rate of 3-hydroxypropanoic acid prices. The imports of raw materials in India rose gradually, leading to an inclination in inventory levels and feeble movements in the 3-hydroxypropanoic acid price dynamics.

Europe

The 3-hydroxypropanoic acid prices in the initial phase of the third quarter experienced a rough run given the weak demand from the downstream industries and moderate supply of the product. But as the quarter progressed, the demand dynamics changed in favor of the 3-hydroxypropanoic acid market, and the prices rose, though slowly. However, this momentum was followed till the middle of the fourth quarter only, and soon, the disruptions in the supply chains and ease in demand rates exerted their ill consequences on the 3-hydroxypropanoic acid market. The cold nature of the feedstock sector, logistic challenges, and production constraints eventually slowed down the progress of the 3-hydroxypropanoic acid price trend.

North America

A similar trend was followed in North America as observed in the European and Asian countries in the third quarter of 2023. The rate of procurement from the pharmaceutical and other downstream industries remained subdued, leading to a negative trend in the prices of 3-hydroxypropanoic acid. These ailing sentiments were then carried forward to the next quarter of the year, too. Excessive supply, a moderate rise in the cost of feedstock materials, and high competition from Asian imports eventually caused a downward trend in the prices of 3-hydroxypropanoic acid.

Analyst Insight

According to Procurement Resource, the price trends of 3-Hydroxypropanoic Acid are expected to waver with the oscillating dynamics of downstream industries and limited trading activities.

3-Hydroxypropanoic Acid Price Trend for the First Half of 2023

Asia

The 3-Hydroxypropanoic acid prices in the Asia-Pacific region were majorly affected by the costs of its feedstock, i.e., glycerol. In the first quarter of 2023, the demand for glycerol declined as the downstream sectors decreased the number of offtakes, and because of that, the level of inventories rose. The manufacturers were thus forced to reduce their price quotations which eventually led to a drop in the prices of 3-Hydroxypropanoic acid. This trend continued throughout the second quarter; however, certain short-lived peaks were seen owing to regional imbalances/uncertainties.

Europe

The European region witnessed a fluctuating trend in the prices of 3-Hydroxypropanoic acid in the first two quarters of 2023. The trend was mostly affected by the glycerol market, and its prices depreciated amid the slow movement of the European market and a rise in the level of inventories. The feedstock market was also affected by the sliding demand and striking high energy prices in the first half. The market soon set its recovery pathway with the surge in demand and high exporting potential of the region, and as a result, the prices inclined slowly in the second quarter of 2023.

North America

In the North American region, the price trend of 3-Hydroxypropanoic acid was influenced by weak market dynamics and declining demand for its feedstock glycerol. The domestic traders struggled with the problem of oversupply and rising levels of inventories in the initial months of the first quarter of 2023. However, towards the latter months, the prices stabilized with support from the oleochemical and biodiesel industries.

Analyst Insight

According to Procurement Resource, the price of 3-Hydroxypropanoic acid is estimated to showcase an inclining trend in the upcoming quarter. The demand dynamics and overall market consumption of 3-Hydroxypropanoic acid seem to be improving, which is expected to impact the pricing fundamentals positively.

3-Hydroxypropanoic Acid Price Trend for the Second Half of 2022

Asia

3-Hydroxypropanoic acid market price trend in the Asian market faced a low inclination in H2 2022.  As price trend for 3-Hydroxypropanoic acid closely follow that of its feedstock glycerol, the market replicated similar supply-demand trend. H2 2022 turned out to be a phase of deceleration in the price trend.

Both Chinese and Indian markets showed very riddled demands. Inventories were capable of meeting the existing market requirements, but neither upstream production costs nor quantities could help maintain the 3-Hydroxypropanoic acid market sentiments for Asia.

Europe

Europe witnessed a very mixed price trend for 3-Hydroxypropanoic acid during H2 2022. Disrupted supply chains and crowded seaport shipments would make it difficult for Asian imports to reach European industries, pushing the prices, but the existing stocks and dampened demands controlled the prices.

So H2 2022 witnessed both periods of highs and lows, but as the universal slowdown continued, the 3-Hydroxypropanoic acid market remained low swinging in the European market too.

North America

The North American market for 3-Hydroxypropanoic acid still performed better than others in H2 2022. Even though the market demands didn’t have any different patterns than universally low stooping, hurdles in feedstock procurement pushed the 3-Hydroxypropanoic acid market sentiments up.

Along with supply chain disruptions and port congestions, unforeseen highs in inflation rates were also responsible for pushing 3-Hydroxypropanoic acid prices up. Even with feeble steepness 3-Hydroxypropanoic acid price trend still performed better than in other parts of the world. Price trend for 3-Hydroxypropanoic acid during H2 2022 in North America kept wavering on the stable side.

Analyst insight

According to Procurement Resource, the 3-Hydroxypropanoic market is going to show mixed price sentiments. The end-user and downstream sectors are expected to show even lower demands as global economic problems worsen.

For the Second Quarter of 2022

Asia

3-Hydroxypropanoic Acid is obtained via the action of a recombinant Escherichia coli strain on glycerol. Hence, the price of feedstock glycerol directly influences the price trend for 3-Hydroxypropanoic Acid. During the first quarter, the feed and ethanol prices increased owing to the surging crude oil prices, thereby causing the glycerol prices to inflate.

The glycerol price averaged 2139 USD/MT CFR Shanghai in the first quarter. Whereas in the second quarter the prices began to dip due to the mismatch in market dynamics. The high upstream costs, production cuts, and decreased buyers’ confidence in the market caused the prices to fall in the second quarter.

Europe

The price trend of 3-Hydroxypropanoic Acid and feedstock glycerol remained strong during the first half of the current year. The acute energy crisis and runaway inflation caused all the commodity prices to increase, with glycerol no exception. The prices averaged 2752 USD/MT CFR Hamburg during the first quarter. Despite the rising costs and supply-side constraints, the price trend remained strong owing to the robust downstream demands.

North America

The price trend in the US domestic arena closely mimicked that of the Asian market. They soared during the first quarter amid supply shortages and rising freight and feedstock costs. The glycerol prices were recorded at around 2812 USD/MT in the first quarter. However, the demand slacked, and the prices weakened towards the end of June.

Procurement Resource provides latest prices of 3-Hydroxypropanoic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.