Hello, Partners
In the world of supplements, it seems that not much has blossomed recently. The supply of Creatine is still a thorny issue, as prices have risen to double what they were a month ago, and have even tripled compared to two months ago. Nevertheless, we’re here to keep you up to date on the ever-changing market. In this edition, you’ll find a bouquet of information and insights!
Hottest Products of the Week
Creatine
In the supplement garden, Creatine continues to be a story of scarcity. Prices rise incessantly, reaching heights almost as difficult to reach as a rare flower. With whispers of possible December shipments, hope resonates like the scent of a fragrant buttd, but products remain sold out.
Xanthan Gum
The market for Xanthan Gum remains as enigmatic as a hidden grove, leaving many perplexed. While understanding its dynamics is still in the dark, there are rumors of limited quantities floating around like a well-kept secret.
Methionine
As for Methionine, we still seem to be in uncertain territory. The supply problem remains, much like a winding path in the forest, but the Methionine price remains steadfast, refusing to keep up with the ups and downs of the market.
Citric Acid
As for Citric Acid, the market presents a picture of stability. Like a calm pond, prices and supply seem unaffected by turbulence elsewhere.
What Else?
Europe & Africa
EU
In the week ending October 13, the price of Aluminium Ingot in the European spot market decreased due to low demand from domestic downstream industries, leading to an oversupply in domestic warehouses. Economic concerns and the shift away from gas-emitting SUVs in the European auto market are contributing to the market’s instability. However, efforts to decarbonize operations and government initiatives, such as EU’s green subsidies for electric vehicles, may boost demand and prices in the coming months. Meanwhile, competition from Chinese manufacturers and high gas emissions rates are affecting demand from the automotive sector, leading to a decline in Aluminum Ingot prices in mid-September. Despite market bearish sentiment, the sales of SUVs remain strong, and potential tariffs between the UK and the EU could impact the price of imported electric cars by the end of 2023.
Germany
Reduced demand from the Personal Care sector in Hamburg, Germany, has led to a decline in prices of Ethoxylates, a key raw material. The sluggish economic conditions in Europe have weighed on the Ethoxylates market, with prices falling by USD 40 per ton by October 13. Despite innovative approaches and production expansions by industry giants like Dow and BASF, the market sentiment remains negative due to weak demand fundamentals. However, rising energy costs may exert upward pressure on Ethoxylate prices in the coming weeks, even as the downward trend continues, primarily driven by reduced demand from the Personal Care sector.
The Americas
USA
In October, the North American market for Sodium Benzoate Excipient saw a moderate price increase due to rising consumption and production costs. The pharmaceutical industry faced challenges in adapting to these higher costs, potentially impacting research and development projects. The price trajectory is expected to remain positive until the end of October, with growing downstream demand and import momentum.
USA
In September, Coca-Cola announced an undisclosed investment in carbon conversion research, partnering with Swansea University in the UK for a three-year project. The research aims to use electrolysis to convert carbon dioxide into ethylene, a key component for making plastic bottle caps. If successful, this process could reduce fossil fuel usage and carbon emissions, aligning with Coca-Cola’s goal of achieving net-zero emissions by 2040. Ethylene is a major carbon emitter globally, and this investment reflects Coca-Cola’s commitment to innovative sustainability solutions and collaboration with research institutions, building upon their efforts to convert captured CO2 into sugar with the University of California, Berkeley.
Asia & Oceania
South Korea
UPM Biochemicals has strengthened its presence in the Korean market by choosing Dongsung Chemical as the exclusive distributor for its bio-monoethylene glycol (BioMEG) product, UPM BioPura. This strategic collaboration expands their partnership, contributing to sustainable chemical solutions in the Korean chemical industry and promoting environmental sustainability. UPM gains access to the extensive Korean monoethylene glycol (MEG) market, further integrating its innovative bio-based product. The partnership positions UPM to introduce sustainable chemicals to the Asian shoe and textile industries, offering innovative solutions to a wide range of customer segments in these markets. This collaboration aligns with UPM’s global commitment to sustainable materials and its investment in a biorefinery in Germany, focusing on renewable fuels and chemicals derived from sustainable biomass.
China
China’s Sinopec has sealed a significant equity deal with Kazakhstan’s state-owned KazMunayGas JSC (KMG), securing a substantial 30% stake in a polyethylene project in Kazakhstan. This partnership, announced during Kazakh President Kassym-Jomart Tokayev’s visit to Beijing for the Belt and Road Forum, is set to produce 1.25 million tons of polyethylene annually in the Atryau region. Sinopec plans to commence construction in late 2024 and is also exploring the construction of phthalic acid and polyethylene terephthalate manufacturing facilities in Kazakhstan. This collaboration reflects China and Kazakhstan’s growing ties in the energy sector, promising economic development and opportunities for both nations.
