As Christmas Break Approaches, Citric Acid Prices Decline in the US
- 22-Dec-2022 5:49 PM
- Journalist: Timothy Greene
USA: As the holiday season draws near, Americans are still hitting the roads and airports despite worries about infection or inflation. For team transitory—the economists who expected that inflation would decline without interest rate hikes—recent US inflation numbers have been positive. In contrast to the 0.3% increase predicted by experts, the US Consumer Price Index (CPI) increased by 0.1% from October to November.
In November 2022, for a number of goods, inflation indices either slowed down or actually decreased. Businesses had stocked up on including Citric Acid in reaction to the supply chain shock and zero COVID policies in China, and now they needed to sell some of those stockpiles at low price margins, enduring a loss. This is due in part to the easing of supply chain hiccups. But rate increases? They did not appear to be really involved.
One of the most often used food additives is Citric Acid globally, as it boosts acidity, enhances flavour, and protects the integrity of the contents. In addition to various dairy products, sodas, juices, powdered drinks, candies, and frozen foods frequently include Citric Acid manufactured in factories. Due to its qualities, Citric Acid is necessary for many different businesses, especially Food & Beverage industries. Manufactured Citric Acid is reportedly utilized in 70% of Foods & Beverages, 20% of pharmaceuticals, 10% of dietary supplements, and 10% of cleaning goods.
The bulk of domestic merchants in the US have already stocked up on Citric Acid from China because they were concerned that intermittent lockdowns in China might impede trade between the two nations. The prices of Citric Acid in the US are also on the lower end due to the coming holiday season in the end-user sectors and the abundance of inventories in the market.
The ChemAnalyst database predicts that prices for Citric Acid will continue to fall through the end of December 2022 because of the winter storms and the approaching Christmas season. After the break in the first quarter of 2023, Citric Acid prices are projected to stabilize.
