Malic acid prices declined significantly on Chinese and US markets in March 2025, a major change in global chemical commodities dynamics. Industry experts’ reason that malic acid prices dropped due to several dynamics influencing both demand and supply.

Chinese producers indicate that prices of Malic acid have declined steadily since February, marking a dramatic drop. Producers over-produced during the pre-Lunar New Year holidays in anticipation of strong post-festival demand that did not come. This was a blunder that created record inventory overstock, compelling manufacturers to cut Malic acid prices in order to clear inventories.

Market dynamics have produced a perfect storm pushing Malic acid valuations lower. The convergence of inflated inventories and lower raw material prices has fundamentally changed the Malic acid market.

Maleic anhydride, the main raw material for Malic acid production, has seen steep price drops. Large maleic anhydride plants-sustained output levels despite shipping difficulties at major ports such as Yantai, placing downward pressure on this essential raw material. This drop in price directly affects Malic acid production expenses, allowing producers to provide more competitive prices without sacrificing profit margins.

The US market is reflective of these trends, as Malic acid prices decreased across the month of March 2025. Malic acid price strategies from American producers have been altered to stay competitive with Asian imports, especially as intercontinental shipping rates have plummeted. Shipping containers from China to the US have dropped substantially, greatly lowering imported Malic acid landed costs.

US distributors continue to post weak demand from key industries. The food processing industry, for which Malic acid serves as an acidulant and preservative, records stable but unimpressive purchasing volumes. Pharmaceutical manufacturers that use Malic acid in the treatment of psoriasis and multiple sclerosis have also followed cautious purchasing approaches.

The building sector, being a prominent user of Malic acid containing unsaturated polyester resins, experiences negligible activity in both geographies. Such poor demand from several industries has added to the situation of oversupply for the producers of Malic acid.

American buyers now prioritize inventory management over placing new orders. The current Malic acid price trajectory greatly benefits purchasers but presents significant challenges for producers who must now operate with narrower profit margins.

Industry analysts predict Malic acid prices will eventually stabilize once producers adjust output to match actual demand. Nevertheless, as long as raw material costs remain low and inventories stay elevated, Malic acid buyers can expect favorable prices to continue at least through the second quarter of 2025.

According to ChemAnalyst, price fall is one part of a global deflationary trend in industrial commodities overall, fueled by weak consumption trends and cautious industrial production that continues to put downward pressure on prices.