In September 2024, the global Fumaric Acid market experienced a steady decline in prices throughout the month, influenced by a variety of interconnected factors. During the first week, prices dropped significantly due to oversupply conditions, as manufacturers worked to clear excess inventories accumulated during peak production periods. Weaker downstream demand further exacerbated this downward trend. Additionally, typical seasonal patterns and reduced purchases from industries reallocating budgets contributed to the price decline. The monsoon season also prompted suppliers to offer discounts to mitigate the risk of inventory damage. Consequently, these dynamics had a widespread impact on major importing countries due to the global nature of Fumaric Acid trade.

The decline in Fumaric Acid prices can be attributed in part to the reduction in raw material costs, particularly Maleic Anhydride. A decrease in demand for materials such as n-butane, coupled with China's shift from a coal- and crude oil-based economy to a more gas-focused model, has led to a decrease in Maleic Anhydride prices. Consequently, manufacturers of Fumaric Acid experienced significant pricing pressure. This trend extended into the second week of September, as an oversupply of Fumaric Acid persisted, prompting producers to implement competitive pricing strategies to maintain market share.

In the U.S. market, a lack of demand intensified the pricing challenges for Fumaric acid. Reduced consumption in downstream sectors, along with diminished trading activity, contributed to an ongoing decline in prices. Key purchasers, especially within the pharmaceutical and food industries, scaled back their buying volumes, adversely affecting market sentiment. The interplay of elevated inventory levels and tepid demand resulted in a persistently weak Fumaric acid market throughout September.

As October 2024 commenced, Fumaric Acid prices exhibited stability, carrying over from the previous month. This equilibrium can be attributed to unchanged demand levels and consistent conditions in the upstream propylene sector. The market for Fumaric Acid remained balanced, with both buyers and sellers expressing confidence in the prevailing price levels. A significant contributor to this stability was China's eight-day holiday period for the Mid-Autumn Festival and National Day, which curtailed market activity and facilitated the continuation of stable pricing.

In other significant importing regions, the impact of the September decline remained evident. Notably, U.S. fumaric acid prices saw an additional decrease, driven by a persistent oversupply relative to demand.

Despite the current stability in prices, the Fumaric Acid market is poised for a significant price increase in the upcoming weeks of October 2024, particularly within the U.S. and European markets. Several key factors are driving this anticipated rise. First, inventory levels have markedly decreased due to robust consumption from both domestic and export end-users. This reduced supply, coupled with escalating demand from critical sectors such as pharmaceuticals and nutraceuticals, is exerting upward pressure on prices. Additionally, the recent Golden Week holiday in China, which began on October 1, has further tightened supply, resulting in inventory shortages for U.S. and European importers. The depreciation of the U.S. dollar against the Chinese yuan is also raising import costs, contributing to the expected surge in Fumaric Acid prices. Furthermore, the announcement of new U.S. tariffs on Chinese imports totaling $18 billion is likely to shift trade dynamics and drive prices even higher.

Logistical challenges, such as escalating ocean freight costs and increased fuel prices, are further complicating the supply chain and fueling upward price trends. Compounding these issues, a recent explosion at a prominent U.S. production facility has intensified supply shortages, leading to greater price volatility.