Fumaric acid prices fell significantly in Chinese and Dutch markets during March 2025, indicating a profound change in the global chemical commodities market. Experts in the industry point to a combination of supply chain factors and market forces that have upset prior pricing equilibria.

Chinese producers indicate price decreases since February, the sharpest one-month fall since December 2024. Producers produced Fumaric acid in large quantities ahead of the Lunar New Year holidays in anticipation of strong post-holiday demand that never materialized. This misjudgment resulted in a record high inventory surplus, prompting producers to cut prices to clear on-hand inventory.

A perfect storm of market forces has been seen sending Fumaric acid valuations into a downturn. The pairing of inflated inventories and decreased raw material costs has totally revolutionized the marketplace.

Maleic anhydride, the major Fumaric acid synthesis precursor, has itself seen considerable price decreases. Large maleic anhydride plants sustained production levels in spite of transportation issues at major ports such as Yantai, placing downward pressure on this vital raw material. This price decrease translates directly into Fumaric acid production costs, allowing manufacturers to provide more aggressive pricing while maintaining margins.

The Dutch market reflects these trends, with the prices of Fumaric acid declining in March. European producers have shifted their Fumaric acid pricing models to stay competitive with Asian imports, especially with freight rates across continents dropping drastically. Shipping of containers from China to Europe is down more than 70% from pandemic highs, slashing landed costs for importing Fumaric acid dramatically.

Dutch distributors indicate that demand for Fumaric acid from major industries continues to be weak. The food processing sector, which applies Fumaric acid as an acidulant and preservative, has sustained steady but unremarkable procurement levels. Likewise, pharmaceutical companies using Fumaric acid in psoriasis therapies and multiple sclerosis drugs have taken conservative purchasing approaches.

The construction sector, a significant consumer of unsaturated polyester resins that incorporate Fumaric acid, shows limited activity across both regions. This underwhelming demand from multiple industries has intensified the oversupply situation for Fumaric acid producers.

European buyers are prioritizing inventory management over new orders. The current Fumaric acid price trajectory benefits buyers immensely but creates serious challenges for producers who must now operate on tighter margins.

Industry commentators predict Fumaric acid prices will ultimately stabilize once producers adjust output levels to reflect true demand. Nevertheless, while raw material costs remain low and inventories continue to remain high, Fumaric acid buyers can expect good prices to hold at least through the second quarter of 2025.

Chemical industry experts note that this Fumaric acid price hike is just one piece of a bigger deflationary puzzle going on in industrial commodities worldwide, with tepid consumption patterns and risk-averse industrial production exerting consistent downward pressure on prices.