The Succinic Acid Market Remains Stable in Asia Pacific Region

Beijing, China- The market sentiments of Succinic Acid have been observed to be stagnant owing to the steady market prices of feed in the regional market. The operational rate came back to life in Beijing and Shanghai, the commercial hub of China. This action has stabilized the market sentiments of Succinic Acid in the domestic market. China recently resumed production as they loosened up the Covid curbs in the country after two months.

According to the analysis of ChemAnalyst, the prices of Maleic Acid, N-Butanol, and Benzene quivered throughout the week in the domestic market, which proportionally impacted the prices of Succinic Acid. The demand for the feedstock Maleic Acid and N-Butanol from the downstream sectors was at the edge, consequently showcasing its effect on the market dynamics of Succinic Acid. On the other hand, benzene prices climbed in the domestic market, upheld by crude oil prices. Importing oil from Saudi Arabia, one of the major exporters, became a difficult task for significant Asian countries. The lack of political alliance and specific sanctions increased Benzene prices in the regional market.

The key factors responsible for the steady movement and production of Succinic Acid are the expanding applications and development of the synthetic business towards bio-based Succinic Acid synthetics. Furthermore, the expanded utilization of succinic acid in the pharmaceutical industry and rising concern for the environment have also impacted the market for Succinic Acid.

Petro-based succinic acid is cost-effective and has improved results compared to the bio-based type. Likewise, it tends to be broadly utilized in the food and beverages industry as a Succinic Acid is consumed as a flavour enhancer. These facets have showcased its ripple effects on the prices of Succinic Acid and became the cause of market stagnancy.

As per ChemAnalyst, the market prices of Succinic Acid will remain static in the Asia-Pacific region on the back of sluggish demand from cosmetics, food, and pharmaceutical factors. The erratic price movement of feedstock in the regional market will correspondingly impact the prices.