Hello, Partners!
The Additives Newsletter breaks the silence in the marketplace with a bold new format. The industry may be taking a nap, but we’re here to shake it up. Buckle up for a ride through the calm before the storm. Let’s redefine quiet with our roaring insights and snazzy updates.
Stay alert!
Hottest Products of the Week
Methionine
Methionine is currently hard to come by on the market as prices for this important feed amino acid skyrocket. Supply shortages are causing a storm, as evidenced by the increase in requests. The trio of key feed amino acids is dancing, but methionine is leading the price/performance spectacle.
Lysine HCL
Lysine is about to disappear from the scene as information indicates that the product quotas are running low, adding to the price surge. Decreasing availability both domestically and internationally further exacerbates the pressure on the lysine market. Brace for impact as lysine takes its place in the amino acid price surge.
Choline Chloride
Choline Chloride is breaking its stability streak, after a prolonged period of calm, announces an imminent price increase in the 4th quarter. Get ready for turbulence, because the winds of change are sweeping the choline chloride market.
Monocalcium Phosphate
Monocalcium Phosphate is preparing for a price roller coaster driven by significant price increases due to supply shortages at a major producer. Raw material shortages are exacerbating the problem, and forecasts point to further price escalation for this chemical compound. Buckle up as Monocalcium Phosphate takes a bumpy ride up the cost table.
Creatine Monohydrated
Creatine prices are rising inexorably as this commodity becomes increasingly scarce in China. The steady rise in prices reflects both the market dynamics and the decreasing availability of the product.
Xanthan Gum
Xanthan Gum is joining the price hike parade, as manufacturers flex their pricing muscles on this important raw material. Get ready to see the cost of xanthan gum rise and market dynamics take a new turn.
Citric Acid
While dominoes are falling, Citric Acid remains resilient and prices are holding at relatively low levels. Despite the market turmoil, citric acid remains an outlier, holding its prices steady amid the storm.
What else?
Europe
EU
EU Commission proposes to re-approve glyphosate for 10 years. The European Commission has proposed a 10-year renewal of glyphosate, a widely used herbicide in the EU, with certain restrictions. Despite acknowledged data gaps, the Commission concludes that there is no significant risk to health or the environment. The decision has faced criticism for prioritizing corporate interests over public health, with a vote by member states expected before the current approval expires in December.
EU
Urea Prices Surge in European Market. In early September 2023, Urea prices surged in Europe due to supply chain disruptions, increased international demand, and higher freight charges, exacerbated by a rise in Ammonia costs. Conversely, Urea prices in North America experienced a marginal decline attributed to surplus material availability, although Hurricane Idalia impacted production. Looking ahead, ChemAnalyst predicts a forthcoming increase in Urea prices in both North America and Europe, driven by higher feedstock costs and a modest resurgence in demand in the fertilizer sector.
The Americas
USA
Sodium Sulfate Prices Surge in the US Market Due to Inventory Scarcity. In August 2023, Sodium Sulphate prices rose due to low market inventories offered at premium rates. Despite subdued demand in downstream industries like the detergent sector, the supply of Sodium Sulphate is expected to remain robust. Factors contributing to the price increase include lower inventory levels, elevated prices of feedstock sodium chloride, and a strategic alliance between Cinis Fertilizer and Ascend Elements. Anticipating an upward trend in the coming months, ChemAnalyst cites factors such as the rising cost of raw materials, increased demand from downstream industries amid economic stability, lower inflation, and the impact of higher natural gas prices on production costs as drivers for the expected price hike in Sodium Sulphate.
North America
Potassium Sorbate Price Trend Continues to Rise in North American Market in September 2023. The price of Potassium Sorbate, a pharmaceutical excipient, is steadily rising in September, driven by weather-related disruptions, increased feedstock costs, and global demand. Market participants predict a positive trend throughout the third quarter, with prices expected to continue increasing in North America and beyond. Factors such as hot weather forecasts in the United States, rising Sorbic Acid demand, and higher input costs contribute to the ongoing upward trajectory of Potassium Sorbate prices.
Asia & Oceania
India
India counting on potash supplies despite a diplomatic row with Canada. Despite a diplomatic dispute with Canada, a key supplier of potash, India is expected to face minimal challenges in securing the crop nutrient from foreign sources, according to industry and government officials. Potash supplies from Canada have remained steady, and India, a major fertilizer importer, has diversified its sources, relying on various global suppliers for its annual consumption of 4 to 5 million tonnes of potash. While Canada’s role is significant, India also imports potash from Belarus, Russia, Israel, and Jordan, contributing to a diversified supply chain that mitigates dependency on any single country.
Japan
Mitsubishi Chemical Announces the Inauguration of a New Semiconductor Materials Plant. Mitsubishi Chemical Group plans to build a new semiconductor materials plant, aiming for operational status by March 2025, amid intensified global competition in semiconductor manufacturing. The location, budget, and specifics of the plant are yet to be finalized, but Fukuoka Prefecture is reportedly under consideration. This strategic move aligns with Japan’s focus on bolstering its semiconductor sector, as seen in government-backed initiatives like Rapidus and increasing interest from foreign chipmakers, including Taiwan Semiconductor Manufacturing Co. (TSMC). The global semiconductor landscape is marked by heightened U.S.-China tensions, leading to export controls and trade disputes, while Japan, the U.S., and the EU enact measures to strengthen their semiconductor industries and reduce supply chain vulnerabilities.
