The raw materials industry is facing ongoing volatility as global economic conditions continue to evolve. Changes in pricing, availability, and trade flows are becoming more frequent—and harder to predict, especially when combined with such dynamic geopolitical tensions, making it increasingly difficult for buyers and suppliers of ingredients in nutrition and health industries for humans and animals.

Understanding the drivers behind these developments is essential to managing risk and maintaining supply chain resilience.

Key Drivers of Volatility

1. Geopolitical Tensions and Trade Policy Shifts

Sanctions, export restrictions, and evolving regulatory frameworks are contributing to increased uncertainty across key sourcing regions.

Recent developments include mostly trade tensions between major economies, particularly the U.S. and China, affecting cross-border flows, shipping and increasing administrative costs.

Disruptions in one region can quickly translate into global price fluctuations and limited availability—especially for those relying on single-origin sourcing.

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2. Macroeconomic Factors: Inflation, Currency, and Interest Rates

Global inflation remains elevated, impacting input costs across manufacturing and logistics. Meanwhile, currency movements continue to influence trade competitiveness and landed costs.

These variables make it increasingly difficult for market participants to forecast price movements and plan procurement effectively, so having reliable sources of information becomes more crucial than ever.

3. Energy and Freight Costs Remain Elevated

The cost of moving goods across borders has not returned to pre-pandemic levels. Container availability, energy markets, and freight demand are all contributing factors.

• Fuel price fluctuations and port congestion continue to impact timelines.
• Logistics costs are often passed down the value chain, raising the overall cost of raw material imports.

4. Supply and Demand Imbalances

Market sentiment is also shaped by seasonal and structural changes in supply and demand. These include:

• Temporary reductions in production output (e.g. due to plant maintenance, accidents or weather-related events).
• Demand spikes tied to regulatory changes, reformulations, or animal disease outbreaks.

The result: pricing volatility across critical materials like Lysine, Vitamin E, and others.

Without real-time data, many companies remain reactive—responding only after conditions have already shifted.

How Kemiex Helps Market Participants Respond Proactively

To navigate these uncertainties, companies need timely, structured market intelligence and reliable data. Kemiex supports procurement and commercial teams with:

• Price Benchmarks – Independent price references based on actual prices from the industry.
• Supply & Demand signals – Real-time updates on production trends and capacity developments.
• Risk monitoring – Early alerts and market-moving news.

Our integrated platform enables faster, better-informed decisions—especially during times of volatility and uncertainty.

Outlook

The raw material markets will likely remain dynamic as macroeconomic conditions continue to shift. Market access, cost control, and supply reliability are top priorities for stakeholders across the value chain.

Companies that invest in market visibility and benchmarking tools will be better positioned to protect margins and secure long-term business continuity.

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