Succinic Acid Prices Fell in Turkey Amid Sluggish Demand for Cosmetic Products

At the beginning of the 2024 final quarter, the Succinic Acid market showcased bearish sentiments in October 2024. The market players negatively revised their quotations to improve offtakes amid increased inventory levels in the market. Succinic Acid demand was moderately low by the beauty and personal care product manufacturers. The global economic slowdown in 2023 and 2024 has constrained Turkey's cosmetics exports, but there are positive expectations for growth in 2025 as interest rates decline. The return of global tourism to pre-pandemic levels is projected to further increase demand for beauty products. Despite challenges from high inflation and reduced purchasing power, domestic cosmetics expenditures rose by 6% in real terms in the first eight months of 2024, while imports grew by 13% in the first half of the year. Production in the cosmetics sector increased by 7.6% during the first seven months of 2024. With over 180 export destinations identified, efforts are ongoing to explore new markets. Simultaneously, Türkiye's Manufacturing Purchasing Managers' Index (PMI) was below the 50.0 threshold in October but rose slightly from September 2024, indicating a slowdown in the contraction of manufacturing activities during the month.

Additionally, the Succinic Acid consumption rates were sluggish in the food sector as buyers cautiously made their purchases amid a rise in inflation during the month.  According to the Turkish Statistical Institute, Turkey's Consumer Price Index (CPI) rose by 3% in October, up from September 2024.

At the same time, the supply rates were firm from key Asian exporters as the manufacturing rates were steady in the key Asian Succinic Acid exporter China. Additionally, in October 2024, the cost support from Succinic Acid feedstock Benzene eased during the month due to sluggish consumption from the downstream value chain. It negatively impacted the upstream cost support on the production costs of Succinic Acid in the exporting country. According to the ChemAnalyst data sources, the Succinic Acid CFR Izmir quotations in Turkey witnessed USD 1600/MT at the end of October 2024, after witnessing a monthly decrease of 7.5%.

As per the estimation, the Succinic Acid prices are likely to rise in the country around the middle of Q4. Buyers are likely to increase their stocking practices before the peak winter season. Meanwhile, demand is anticipated to grow from the cosmetics and food industries. Additionally, Succinic Acid supply from Asia may remain limited, as production in key Chinese facilities might be afflicted due to a shortage of feedstocks such as n-butanol and benzene during the peak winter months.