The Gelatin Prices in the North American region showed a mixed price trajectory in the Q4 of 2022. In the USA, Gelatin price escalated a total of 7.8% for Gelatin (BS-150) and 1.4% for Gelatin (BS-220) until November of 2022 before dropping 1.7% and 1.1% in December. Inventories of Gelatin were low in the domestic market due to rising feedstock costs which impacted production. Due to slow imports and a lack of truckers, the U.S. market for Gelatin remained tight. In addition, the cost of logistics had grown, mostly as a result of containers becoming stranded at ports or at sea and a lack of workers to unload the ships. In December, prices decreased as the country finally started to recover, as the U.S. supply chain gradually became better with reduced ship backlogs at the east coast port significantly. The reduced demand brought on by slower consumer spending resulted in slow manufacturing activity in December. Therefore, by the end of the quarter, the CFR Houston prices for Gelatin (BS-150) and Gelatin (BS-220) settled at USD 7985/M.T. and USD 8920/M.T. in December 2022, respectively.
During the fourth quarter of 2022, the prices of Gelatin across the Asia Pacific region displayed an upward price trajectory. Between October and December, the FOB Shanghai price in China increased from USD 6520/M.T. to USD 7100/M.T. for Gelatin (BS-150) and USD 7940/M.T. to USD 8045 /M.T. for Gelatin (BS-220). The prices of Gelatin in the Chinese market were affected by the strong demand from a number of end-user pharmaceutical and healthcare industries. Low inventories among domestic merchants as a result of the suspension of manufacturing activities over the Golden Week holidays in the first week of October helped the price trend in the market. Following a one-week holiday and the market's reopening, domestic traders met several contradictory signals, making it challenging for the participants to keep up with the slow progress witnessed in the downstream industries. Government officials altered its zero-covid policies in response to complaints and significant dissatisfaction in the nation, putting the nation susceptible once more in the second half of the fourth quarter of 2022.
Gelatin's market dynamics in Europe were comparable to those in North America and the Asia-Pacific region. However, until November 2022, Gelatin's price increased. The price hike was prompted by supply shortages and continuous demand from end-user industries. Additionally, in order to enhance profit margins, domestic firms had to alter their product lineups as import costs rose. Later in December, weak purchasing activity was seen as a result of decreased demand from the local market, which led to a decrease in price. Due to their misgivings about the availability of merchandise, regional dealers in Germany lowered prices to entice customers.
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