Glycine Price Trend and Forecast

Glycine Regional Price Overview

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

Glycine Price Trend for the Q4 of 2024

Asia

The Asian Glycine market experienced significant downward pressure throughout Q4'24, primarily due to oversupply conditions in China and Southeast Asia. Chinese manufacturers operated at high capacity following recent expansions, which led to excess inventory levels. This oversupply situation forced producers to implement aggressive pricing strategies to maintain market share.
 

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The pharmaceutical and food additive sectors maintained steady demand, but it wasn't enough to offset the increased production volumes. Regional manufacturers adjusted their production rates towards the end of the quarter to better align with market conditions.

Europe

European Glycine markets showed more stability compared to other regions, though prices still followed a declining trend in Q4'24. The food processing industry maintained consistent demand, while pharmaceutical applications provided steady support to the market. Manufacturers faced pressure from cheaper Asian imports, which influenced their pricing strategies. Energy costs continued to impact production expenses, but the overall downward price trend in raw materials helped maintain operational margins. Buyers took advantage of the declining prices to build inventory positions.

North America

The North American Glycine market followed the global downward trend during Q4'24. The region saw steady demand from pharmaceutical and nutritional supplement manufacturers, but this was outweighed by increased availability of material from international suppliers. Domestic producers faced strong competition from imports, particularly from Asian manufacturers. The food processing sector maintained regular procurement patterns, while specialized chemical applications showed mixed demand. Manufacturers focused on maintaining market share through competitive pricing strategies.

Analyst Insight

According to Procurement Resource, Glycine prices were expected to show signs of stabilization in early 2025, as market participants anticipated a potential correction in supply-demand dynamics.
 

Glycine Price Trend for the Q3 of 2024

Asia

The glycine market in Asia displayed strong upward momentum during the said period. The downstream demand from food and pharmaceutical sectors kept strong, while supply remained restricted due to production cutbacks.

Though the market witnessed initial softness, robust international demand and higher production costs pushed prices northward. Manufacturing sentiment in China remained subdued owing to off-season which further contributing to the market constraints.

Europe

Glycine prices in Europe maintained bullish sentiment throughout Q3’24. The market witnessed active buying across food and feed segments amid tight supply conditions. Production rates dropped due to feedstock constraints and scheduled turnarounds. Currency fluctuations and high import costs further supported the price rise. Seasonal uptick in demand provided additional support to the market fundamentals.

North America

The US domestic market witnessed positive sentiment throughout the third quarter. Supply remained restricted amid strong downstream demand and trade-related uncertainties. Currency fluctuations impacted import costs, while domestic producers struggled with production ramp-ups. Market participants focused on inventory building, leading to supply tightness in the region thereby, impacting the overall market fundamentals.

Analyst Insight

According to Procurement Resource, Glycine prices are expected to maintain its current momentum in the coming months. The market outlook appears bullish, supported by strong downstream demand and ongoing supply constraints.
 

Glycine Price Trend for the Q2 of 2024

Asia

In China, glycine prices during the second quarter of 2024 saw a downward trend due to ample inventories and muted demand from overseas markets. The cost of upstream raw materials also decreased compared to the previous month, leading to lower profit margins for glycine producers, to which they responded by reducing their production levels. Despite efforts to adjust export prices, limited procurement persisted due to weakened downstream and international markets.

The producers were, therefore, compelled to reduce prices to stimulate exports. Additionally, the trading sector eventually shifted its focus to consuming existing inventory. Meanwhile, towards the end of the quarter, the scheduled plant shutdowns lowered the overall operational rates.

Europe

In Europe, a similar trend was observed in the Asian countries, with glycine prices decreasing due to sufficient supply levels and reduced demand. Further, the economic challenges and fluctuating production costs had a negative influence on the market and kept the price trend of the market in the southward direction. The market sentiments were also impacted by the overall economic downturn, leading to cautious procurement strategies among buyers. Overall, the glycine market in Q2'24 was driven by ample supply, reduced demand, economic challenges, and currency fluctuations. The market players faced the challenge of navigating these fluctuations as they developed alternative pathways to adapt to evolving market conditions to maintain competitiveness and sustain growth in the glycine industry.

North America

In the United States, the market for glycine continued its weak trail throughout the sector quarter, with consumers opting for a need-based procurement pattern. The decline in export prices from major producing nations also influenced market sentiment within the U.S. Additionally, several factors contributed to this decline, including a shift in consumer purchasing towards other amino acids, surplus supply surpassing current demand levels, and fluctuations in production costs.

The reduced consumer spending due to persistent economic hardship further aggravated the situation. The economic indicators further suggested a higher probability of the Federal Reserve hiking interest rates, making borrowing more expensive and slowing economic activity, thereby reducing demand for goods and services. Consequently, consumers continued to cut back on spending on various commodities, including glycine. Further, the demand from downstream sectors, particularly preservatives, remained muted, further weakening imports.

Analyst Insight

According to Procurement Resource, the price of Glycine is estimated to oscillate in the quarters ahead as the weak stance of the downstream industries and excessive supply from the feedstock industries is likely to increase the challenges of the market.
 

Glycine Price Trend for the Q1 of 2024

Stay updated with the latest Glycine prices, historical data, and tailored regional analysis
 

Asia

During the first quarter of 2024, the glycine market demonstrated oscillating sentiments as the primary drivers of the market presented an uncertain picture. The major setback for the market came after the weak recovery of the Chinese market after the Lunar New Year holidays and spring festivities.

The production rates of the commodity, however, surged at a much higher pace than its procurement rates, eventually disbalancing the supply-demand equilibria of the market. Additionally, the loss of export profit margins due to the diversion of the Red Sea route and persistent attacks on Asian shipments by the Houthi community further dampened the interest of both the suppliers and consumers, resulting in a wavering pattern of glycine prices.

Europe

The European market of glycine received excessive pressure from the compounding pressure of rising geopolitical tensions because of the Israel-Hamas crisis. The region also witnessed a bleak stance from the downstream food and beverages sector as the industries focused on developing sustainable strategies to curb the recent changes in the market's overall dynamics. Further, the region's economic parameters also failed to extend any substantial support to the market and had a fair share in leading to a downturn in the commodity's prices. Additionally, similar to the Asian countries, the loss of exporting margins and a limited number of overseas inquiries raised the skepticism of traders and manufacturers for the near quarters as well.

North America

In the United States, glycine prices rose significantly due to reduced operating rates in exporting nations during the holiday season, resulting in limited availability of finished stocks. Despite a temporary slowdown in economic activity during the Lunar New Year and Spring Festival in China, one of the major exporters of Glycine to the U.S., the swift resumption of downstream operations in China led to increased demand and a resurgence in regional and international inquiries. However, logistical bottlenecks and production delays in China impacted businesses reliant on Chinese suppliers, contributing to cost escalations in the U.S. glycine sector.

Analyst Insight

According to Procurement Resource, the price of Glycine is expected to struggle with the limited interest of the downstream industries, constrained spending by the consumer, and escalating global trading challenges.
 

Glycine Price Trend for the Second Half of 2023

Asia

Glycine performed fairly well in the Asian markets during the last two quarters of 2023. The prices surged throughout the third quarter after starting steadily at the beginning of July’23. The first three months of the given span saw a rise of more than 10% in the glycine prices in the Chinese market. This rise was influenced by the rise in feedstock ammonia prices and the increased downstream demands from the pharma sector.

The fourth quarter, too, went on to see a similar trajectory but was hindered by the freight and trade disturbances caused by various geopolitical events. The Russia-Ukraine conflict was still not over when another war broke out in the Gulf between Israel and Hamas. With this, the offshore queries and orders saw a considerable dip, which pushed the glycine price trend back for some time. Overall, varying market sentiments were witnessed.

Europe

A similar market situation to the Asian market was seen in the European glycine market as well. Prices saw a substantial incline in the third quarter, only to face a consumption crisis in the following quarter. A consistent demand trajectory kept the stock movement persistent in the third quarter, which led suppliers to order a little freely. The inventories were full and as the demands dipped in the following quarter, they were well capable of catering to the existing demands. This created a little uncertainty in the European glycine market.

North America

Compared to the other major glycine markets, the American glycine market was observed to be majorly receding for the majority of the said time period. The inventories here were already stacked since the beginning amidst a tepid consumption trajectory. So, the prices didn’t have much room to improve during this period. Overall, muted market sentiments were witnessed.

Analyst Insight

According to Procurement Resource, the Glycine price trends are expected to waver in the coming months. Given the current gap between the supply and demand outlooks, the price trend is not likely to improve much going forward.
 

Glycine Price Trend for the First Half of 2023

Asia

The Asian Glycine market observed mixed price trend during the first half of 2023. Glycine prices rose for the entire first quarter as the downstream demands from fodder and pharmaceutical industries rose, and manufacturing also saw a rise. But as the quarter shifted, the inventories started overflowing because of oversupply, and the demands didn’t rise at the same pace and were steady.

These situations called for a decline in prices in the second quarter. Overall, mixed price trend for Glycine were observed. In January, the spot prices averaged around 1740 USD/MT in the Chinese market. After a narrow rise in Q1, Glycine prices declined in the second quarter averaging 1565 USD/MT in June’23.

Europe

In the European Glycine market, the prices observed a downhill trend throughout the said time period. The upstream costs started normalizing after a long time, with energy and freight costs subsiding slightly. But the supply overflow amidst lackluster demands drove the market sentiments. Prices remained on a declining trajectory throughout H1 2023. Spot prices averaged around 2010 USD/MT in January and ended the second quarter at about 1610 USD/MT.

Analyst insight

According to Procurement Resource, the price trend for Glycine are expected to fluctuate further, given the current volatile economic scenario. The downstream demands will continue to be the primary driving factor for market trend.

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