Global Succinic Acid Prices Decline in November Amidst Steady Supply Rates

In November 2023, Succinic Acid witnessed a reduction of almost 2% to 3% in the international markets due to steady supply rates and moderate offtakes from buyers.

According to the sources, the Eurozone's manufacturing Purchasing Manager's Index (PMI) has consistently diminished during the past few months, and once again, it fell in November 2023, indicating further contraction in the manufacturing sector activities in the region. Consequently, the demand for Succinic Acid from the domestic downstream industries remained low as the orders were reduced for clothing fibers amid a decline in retail sector sales and food sales index by 1.1% in October 2023. Meanwhile, orders from the pharmaceutical sector remained average. Meanwhile, the Succinic Acid supply rates from the Asian exporters were stable. At the same time, the consumption rates from the food and textile sector remained low amid reduced offtakes from domestic buyers. It raised the domestic inventory levels of Succinic Acid.

Last month, the Succinic Acid price trend shifted, and prices fell noticeably in the market amid pessimistic sentiments due to dampened demand from buyers after the National Week holiday in key exporter China. Simultaneously, Benzene feedstock prices saw a dip in the middle of the month as Crude Oil prices fell due to OPEC+'s stabilization efforts. This was in response to speculation around supply chain disruptions in the Middle East because of the conflict between Israel and the Palestinian Islamist Group. Simultaneously, feedstock n-butanol prices decreased due to a reduction in trading activities after the Golden Week holidays as the supplies were adequately available in the market and consumption rates were feeble. It reduced the production costs of Succinic Acid, and production rates of Succinic Acid remained moderate during November 2023. Furthermore, the feedstock Benzene availability improved in the Asian region due to an increase in upstream Crude Oil supplies after the resumed refinery operations in the US in November. It eased the cost support on production costs of Succinic Acid.

In conclusion, the Succinic Acid prices in Germany and the US hovered at USD 1650/MT and USD 1690/MT, respectively. At the same time, in the key producer and exporter China, the prices were witnessed at USD 1560/MT at the end of November 2023.

As per the assessment, the Succinic Acid prices will decline again in the international market towards the end of the year. The reason is the anticipated destocking practices by Asian exporters at the end of the year. The demand and consumption rates from the buyers will remain moderate as the operating rates decline in the manufacturing units during peak winter.