Hello, Partners
As we dive into the latest edition of Additives, the first waves of congestion are making themselves felt in the ports of the European Union, promising a turbulent voyage. Shipping lanes are facing unprecedented challenges, and delivery schedules for manufacturers must brace for stormy waters and potential delays (Keep reading to find out why). Buckle up, because in this edition, we’re riding the waves of industry upheaval and charting a course through the dynamic currents of additive innovation!
Hottest Products of the Week
Creatine
Creatine, the coveted jewel in the crown of the market, is in the midst of a whirlwind caused by scarcity. The shelves where the coveted supplement cannot be found are experiencing a rocket rise in prices in Europe. Anxiously, the market looks to the horizon, awaiting the arrival of container giants from China to satisfy the insatiable appetite of production. The creatine chronicle is in full swing and anticipation is building as the industry gears up for a tidal wave of supply to meet the rising demand.
Methionine
Methionine, the wild stallion of the market, is currently unleashing a storm. As one of the three most important amino acids for feed, it’s prancing through a landscape marked by scarcity. Feed producers, desperate to secure this elusive raw material for the months ahead, are in a fierce tango with a tiny supply. The consequences? A dramatic price spike, with current selling prices soaring to a staggering 3 EUR/KG. Brace yourself, because the Metionin saga is about to record a symphony of scarcity in the annals of market chaos.
Lysine HCL
Lysine, the silent maestro in the symphony of amino acids, is currently basking in the calm after the summer storm of contracts. While producers hold their breath in silence, anticipation is in the air like a prelude to a dramatic crescendo. The looming encore promises buybacks in the weeks ahead, with prices soaring beyond the limits of summer contracts. The lysine story, which had briefly fallen silent, will now take back the stage with a loud roar of market dynamics.
Monocalcium Phosphate
MCP, the rising star in the market spotlight, sparks discussion as its price soars to new heights. In the midst of this red-hot trend, the stage is set for a relentless dance of transactions, with the spotlight firmly fixed on a constant ebb and flow of sales. The MCP saga continues as market dynamics raise the temperature and the story of relentless demand and escalating prices is told.
Xanthan Gum
Xanthan Gum, the unsung hero in the stability game, is currently holding its own in a market that is in equilibrium. While stability seems to be a driving force, there are whispers of an underlying crescendo in the corridors of the industry. The elusive nature of xanthan gum, akin to chasing a comet, making its acquisition a search for a needle in a haystack. Xanthan Gum’s market dance is a delicate ballet of stability, with rising undertones suggesting that challenges in securing this indispensable ingredient may not be obvious, but they do exist.
Citric Acid
Like a stoic sentinel, Citric Acid stands steadfast in the current market landscape. It’s stable and its abundant supplies provide a solid presence on the shelves. But in the midst of this stability, there is a bit of turmoil as trisodium citrate enters the scene and captures a modest portion of the attention of discerning consumers. The citric acid saga continues: stability meets a touch of intrigue, creating a harmonious balance in the realm of acidic wonders.
What else?
Europe & Africa
Germany
In September 2023, Germany witnessed a significant rise in Vitamin B4 prices, driven by factors like reduced inventories, surging energy costs, and strong demand. China’s manufacturing revival positively influenced global prices, impacting the German market as well. Ongoing economic challenges in Germany, including a contraction in business activity and escalating energy expenses, coupled with potential disruptions in the supply chain due to geopolitical tensions, are expected to sustain the upward trend in Vitamin B4 prices in the coming months.
Germany
Following a bearish trend, Polymethyl Methacrylate prices in Germany have risen due to increased costs from major manufacturer Röhm, citing higher Methyl Methacrylate prices and upstream pressures from Brent crude oil. Although demand from the automotive industry has stabilized, the lukewarm inquiries from the construction sector and logistical challenges, such as the low level of the Rhine River, may contribute to further price increases in October 2023, according to ChemAnalyst.
The Americas
USA
The US Acetic Acid market has experienced a stable trend in early October, driven by consistent demand from downstream industries like ethyl and butyl acetate in construction. This stability is influenced by the recovery of home prices and decreased supply levels. While certain housing markets are thriving due to affordability and high demand, others, particularly in the Western US, are witnessing declines. Despite short-term projections indicating an increase in Acetic Acid prices due to factors like rising feedstock prices and strong demand, long-term forecasts predict a decline due to market destocking and decreased demand from downstream industries.
USA
Phenol prices in the US have seen a steady increase recently, driven by heightened demand from Bisphenol A industries and concerns over supply due to OPEC+ production cuts and rising Crude Oil prices. Manufacturers have responded by raising Phenol prices to safeguard their profit margins, with a notable USD 20 per ton increment reported by October 6th. The market anticipates further upward momentum in Phenol prices, supported by improved demand from downstream industries, positive trends in the construction sector, and potential shifts in the Federal Reserve’s tightening stance by the end of Q4.
Asia & Oceania
Israel
As the Israel-Hamas conflict heightens, global crude oil prices surge, impacting petrochemical markets such as Hexene. Rising tensions in the Middle East contribute to an ethylene shortage and potential disruptions in global supply chains, leading to increased freight charges and affecting industries like construction. The Hexene market faces bearish trends, impacting the transition to Electric Vehicles and adding economic challenges for Asia and Europe due to higher freight costs and supply breakdowns.
Australia
A massive chemical warehouse conflagration in Perth’s southern region sent shockwaves over a 35-kilometer radius, originating at the Chemsol Australia factory in Bibra Lake. Fire crews battled the flames for an hour before a powerful explosion led to the complete loss of the facility. Despite 12 hours of firefighting efforts, a hazardous materials warning was issued due to lingering dangerous smoke. The aftermath involved coordinated actions from various agencies, including the Department of Water and Environmental Regulation’s Pollution Response Unit, showcasing the community’s resilience and collaborative spirit in the face of the unexpected catastrophe.
