US Tartaric Acid Prices Fall in June 2023 Amid Plunging Feedstock Costs

The US market for Tartaric Acid has seen a price decrease in the month of June. There are a number of reasons behind the price decrease, such as an increase in supply, decreased demand, and a strengthening USD. One of the main reasons is that Tartaric Acid production has increased globally in recent years. China, the world's largest Tartaric Acid producer, increased its output in 2023, increasing the global product supply.

Another reason for the Tartaric Acid price drop is sluggish demand. Tartaric Acid demand in the USA has declined in recent months due to several factors, such as the economic slowdown and growing preference for natural and organic products over synthetic preservatives. Tartaric Acid is mainly used in the pharmaceutical, cosmetic, and Food industries. The economic slowdown has caused consumers to cut back on spending on personal care products. As a result, personal care products containing Tartaric Acid have decreased in demand. Consumers are increasingly turning to natural and organic products as alternatives to synthetic preservatives.

The USD has appreciated against other major currencies like the Euro and the Yen. As a result, Tartaric Acid prices increase for buyers in these countries, leading to a decrease in demand. Also, the Manufacturing Purchasing Managers' Index (PMI) in the USA decreased to 46.3 in June 2023 from 48.4 in May, and the Consumer Price Index (CPI) in the USA increased by 0.1% in June 2023 on a seasonally adjusted basis, after rising by 0.3% in May. The core CPI, which excludes food and energy prices, increased by 0.3% in June after rising by 0.6% in May. A decrease in PMI suggests that the demand for goods produced by the manufacturing sector is declining. Also, a decrease in PMI is a sign of weakening economic growth. This lead to lower consumer spending, which would also put downward pressure on prices.

In addition, Tartaric Acid production costs have also decreased in recent months due to the decrease in raw material prices and the improvement of production processes. The price of raw material used for producing Tartaric Acid, which is Maleic Anhydride, has decreased in recent months. In addition, the improvement of manufacturers' production processes has also contributed to the decrease in production costs.

There is also an exporter surplus of Tartaric Acid, contributing to the price decrease. The USA is one of the largest exporters of Tartaric Acid. The global demand for Tartaric Acid is not increasing as quickly as the supply is increasing. This has resulted in an export surplus, contributing to the price reduction.

According to ChemAnalyst, the Tartaric Acid market situation will likely stabilize further. Current market conditions are expected to continue to weigh on Tartaric Acid prices in the near term. However, Tartaric Acid demand is expected to grow in the long term. This will likely happen if the global economy gets back on track and the pharmaceutical and food and beverage sectors resume growth.