Glutamic Acid prices trend showed steady growth in the first quarter of 2023. Due to merchant supply to meet demand and continued purchases from the pharmaceutical end-user sector, prices increased at the beginning of Q1 2023 and remained up until the end of February. The market position also benefited from an increase in trade flow and simpler logistic costs compared to the previous quarter. On the other hand, prices stabilize from the start of February to the end of March as a result of adequate stocks, offtakes from the low-end consumer sector, and a decline in freight costs.
In the first quarter of 2023, Glutamic Acid prices in the APAC area showed signs of improvement. As domestic and foreign markets demanded that their stocks be refilled with fresh stock at the beginning of Q1 2023, prices increased significantly. The market situation remained stable thanks to increasing production activity as well. The Chinese pharmaceutical markets technically made a strong comeback with continuous orders from both the domestic and international markets at the beginning of February, following the Lunar New Year vacation. Factory and port operations started up as soon as the market was restored. Also, as the sugarcane output was not as impressive as anticipated, the market situation for feedstock Sugar bagasse was also reported to be feeble in the Chinese market. At the termination of Q1 2023, the settlement price of Glutamic Acid API accessed at USD 2220/MT FOB Shanghai with an average quarterly inclination of 2.36%.
In the first quarter of 2023, the price trajectory for glutamic acid continued to increase steadily. Prices grew at the start of Q1 2023 and persisted through the end of February as a result of merchant supply increasing to match demand and ongoing purchases from the pharmaceutical end-user sector. Additionally, a rise in trade volume and lower logistical expenses when compared to the prior quarter helped the market position. On the other hand, due to sufficient inventories, offtakes from the low-end consumer sector, and a drop in freight costs, prices stabilised from the beginning of February to the end of March.
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