October 2024 was packed with significant developments across bulk material markets, from lithium extraction and sugar substitutes to oil futures and resin prices. As demand for eco-friendly lithium extraction accelerates and sugar substitutes continue to gain traction, shifting global conditions also spurred notable trends in soybean oil and plastic resin markets. Additionally, record-breaking wheat yields shaped the agricultural outlook. Here’s a snapshot of five key headlines you might have missed, offering insights into the evolving dynamics of these critical industries.
Direct Lithium Extraction Market Poised for 20% Annual Growth
The direct lithium extraction (DLE) market is projected to grow at an annual rate of 20%, driven by increasing demand from battery manufacturers for more efficient and eco-friendly extraction methods. Unlike traditional, slow, and costly processes, DLE offers a more energy-efficient alternative, especially suited for lithium-rich brines. However, regional challenges, such as infrastructure limitations in South America's lithium triangle and technical difficulties with geothermal brines in Europe and the U.S., remain. Oilfield brines present opportunities using existing infrastructure but face lower lithium concentrations.
Sugar substitutes market forecast for growth to $29 billion by 2029
The sugar substitutes market is expected to grow from $23.56 billion in 2024 to $29.9 billion by 2029, driven by a 5% annual growth rate. Key factors include increasing demand for clean label and natural ingredients like stevia and monk fruit, supported by regulatory and health trends favoring low-calorie options. Liquid sweeteners are gaining traction due to their nutritional benefits and versatility in food and beverages. Europe leads in market share, benefiting from strong regulatory frameworks and health-conscious consumers.
Soybean oil futures showing surprising strength
Soybean oil futures have shown unexpected strength despite record-high soybean production forecasts. After hitting a four-year low in August, futures have surged nearly 13%, driven by climbing palm oil prices. The ongoing rise in palm oil, exacerbated by El Niño-induced droughts and labor shortages in Indonesia and Malaysia, has created a price floor for global edible oils. Indonesia's reduced production and potential policy shifts to increase biodiesel usage are adding to supply concerns, influencing the market.
Prices of PP, PET Drop; PE, PS and PVC to Follow
Polypropylene (PP) and polyethylene terephthalate (PET) resin prices have dropped, driven by factors like lower feedstock costs and weaker demand. Meanwhile, price reductions for polyethylene (PE), polystyrene (PS), and polyvinyl chloride (PVC) are also expected to follow. Market influences include fluctuating global energy prices, improved material supply chains, and shifting consumer and industrial demand patterns. This trend marks a key transition period for resin markets, as economic pressures and inventory adjustments continue to shape material pricing.
All-wheat crop up 9% from 2023
The USDA’s September report estimates the 2024 U.S. all-wheat crop at 1,971 million bushels, up 9% from 2023, despite a smaller planted area. This increase is driven by higher yields and reduced acreage abandonment. Winter wheat production rose 9%, with gains in hard and soft white varieties, although soft red winter wheat declined. Spring wheat set a record yield, boosting production by 8%. Durum wheat saw a 35% production increase, with abundant supplies anticipated. Overall, wheat stocks as of September 1 increased 12% year over year.
