For the Quarter Ending September 2024
North America
In Q3 2024, the North American Citric Acid market witnessed a significant decline in prices, driven by a confluence of factors. A persistent oversupply in the market, combined with sluggish demand both domestically and internationally, resulted in a substantial imbalance. As manufacturers adjusted to the reduced demand, they curtailed production, leading to the first contraction in supplier lead times in three months. This cautious approach from end-users further dampened buying interest, solidifying a bearish market sentiment.
Moreover, the Corn market, a crucial input for Citric Acid production, experienced its own downturn, adding additional pressure on prices. Disruptions in the U.S. market, notably due to plant shutdowns triggered by hurricanes, temporarily impacted operations, compounding the challenges faced by manufacturers.
Overall, the quarterly trend was decidedly negative, with Citric Acid prices decreasing by 2% compared to the previous quarter. A stark contrast was observed between the first and second halves of the quarter, with prices plummeting by 6%. By the end of the quarter, the price for Citric Acid Anhydrous CFR New York settled at USD 890/MT, reflecting a prevailing trend of decreasing market sentiment.
Asia Pacific
In Q3 2024, the APAC region experienced a significant decline in Citric Acid prices, driven by a confluence of market factors. Notably, an oversupply of Citric Acid, coupled with reduced demand and negative economic indicators, set the stage for a downturn. Currency depreciation across key economies contributed to rising import costs, while persistent supply chain disruptions and weakened consumer sentiment compounded the challenges for producers.
China, as a major player in the Citric Acid market, experienced the most pronounced price fluctuations. The region faced escalating input costs, excessive stockpiles, and a sluggish demand environment, resulting in a notable price adjustment. This quarter marked a -3% price decrease compared to the previous quarter and a more pronounced -9% drop between the first and second halves of the year. The closing price for Citric Acid Anhydrous in China reached USD 675/MT FOB Shanghai, highlighting the pervasive downward pricing pressure.
Additionally, plant shutdowns and operational disruptions further exacerbated market challenges, reinforcing the trend of decreasing prices. Collectively, these factors contributed to a consistent decline in Citric Acid prices throughout Q3 2024, reflecting the ongoing complexities within the APAC market.
Europe
The third quarter of 2024 for citric acid in the European market was marked by a significant price decline, driven by a confluence of factors that reshaped market dynamics. A notable oversupply coupled with reduced demand from downstream sectors contributed to the downturn. Global supply chain challenges continued to affect production and distribution, exacerbating the price decline.
In particular, Germany experienced the most pronounced price fluctuations, serving as a barometer for overall market sentiment. Factors such as reduced production costs, high inventory levels, and cautious consumer behavior further fueled the downward trend in prices. Seasonal influences also played a role, impacting the pricing landscape and prompting correlations with other market variables.
When comparing this quarter to the same period last year, prices revealed a marked decrease, reflective of prevailing market conditions. Quarter-on-quarter analysis showed stability in prices, yet a notable decline of 6% was observed between the first and second halves of the quarter. The quarter-ending price of USD 880/MT for citric acid anhydrous CFR Hamburg in Germany highlighted the ongoing downward trend. Additionally, disruptions and plant shutdowns during the quarter further underscored the challenges facing the citric acid pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Citric Acid market saw stable pricing driven by key factors. The consistent supply from major exporting regions balanced supply and demand. Despite disruptions like the Baltimore Bridge collapse and Panama Canal drought, the supply chain remained resilient. Steady input costs and proactive inventory management by suppliers supported market stability.
In the USA, Citric Acid prices experienced notable changes due to various influences. The early peak shipping season increased freight rates and container shortages, affecting overall costs. Geopolitical tensions and environmental challenges, such as low water levels in key shipping routes, necessitated alternative logistics, adding complexity to price stabilization.
Throughout the quarter, the USA Citric Acid market exhibited consistent trends with slight seasonal fluctuations. Price changes aligned with broader market dynamics, showing a moderate 0.50% average quarterly increase, indicating a stable yet cautiously optimistic pricing environment. Price parity was maintained between the two halves of the quarter, reflecting balanced market sentiment. By the end of Q2 2024, Citric Acid prices in the USA were at USD 898/MT CFR New York, underscoring a stable market amidst various challenges and marking a steady trajectory for the sector in North America.
Asia Pacific
In Q2 2024, the APAC region experienced a significant increase in Citric Acid prices, driven by strong demand and limited supply. Key factors included rising raw material costs, particularly corn, which elevated production expenses. Geopolitical tensions and logistical issues, such as the Panama Canal drought and disruptions from the Houthis' campaign against Israel in Gaza, further strained the supply chain. Additionally, the strengthening of the Chinese yuan against the US dollar incentivized Chinese exporters to increase shipments, tightening domestic supplies and pushing prices higher.
In South Korea, the most pronounced price changes were observed, with a consistent upward trend influenced by seasonal factors and increased production costs during the warmer months. Prices rose by 0.66% on average, with a further 1% increase in the latter half of the quarter, ending at USD 780/MT for Citric Acid Anhydrous CFR Busan. This trend was largely driven by China's market dynamics, impacting the broader APAC region.
April saw heightened trading activity due to positive manufacturing sentiments and strategic inventory management. The depreciation of the Chinese yuan boosted the competitiveness of Chinese exports, while reduced logistical expenses and proactive bulk purchasing ahead of the May Day holiday contributed to market stability. In May, prices surged due to the yuan's appreciation, increased domestic and international demand, and geopolitical tensions. Maintenance shutdowns at manufacturing plants and rising corn prices further tightened supply and drove prices up.
However, in June, prices declined as the yuan depreciated, demand reduced, and geopolitical tensions disrupted trade, leading to an oversupply. Scheduled shutdowns at manufacturing plants and logistical challenges also pressured inventory management, especially for heat-sensitive powdered Citric Acid.
Europe
In Q2 2024, the European citric acid market demonstrated stability, driven by steady supply dynamics and seasonal demand fluctuations. Consistent production rates, minimal disruptions, and efficient inventory management among key players were crucial in maintaining this stability. Additionally, reduced freight charges and the absence of significant plant shutdowns supported the stable pricing environment. A consistent influx of citric acid from global suppliers met regional demand effectively.
Germany, in particular, experienced notable price changes, reflecting a stable yet slightly dynamic market environment. The gradual alignment of supply and demand characterized the overall trend. Increased consumption by the food and beverage industry during the summer months helped maintain demand levels. Despite these seasonal fluctuations, prices remained stable, with minimal percentage change from the previous quarter.
Specifically, price changes between the first and second halves of the quarter were negligible at 0%, indicating a well-balanced market. The quarter-ending price for Citric Acid Anhydrous CFR Hamburg was USD 910/MT, with an average quarterly increase of 0.56%. This pricing environment underscores a stable sentiment, supported by consistent production, minimal disruptions, and balanced supply-demand dynamics in both Germany and the broader European region.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Citric acid in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Citric acid in the US was USD 885/MT CFR New York, showing an average quarterly increase of 0.58%.
The USA experienced rising prices due to various factors: production slowdowns, maintenance shutdowns, export restrictions, increased freight charges, and low inventories. Dependence on Chinese imports worsened due to disruptions in Chinese provinces during Lunar New Year, constraining supplies and raising prices. Post-Lunar New Year, global demand for Citric acid surged, influenced by geopolitical tensions, trade disruptions, and increased container freight rates, causing another price hike in March. The US, a major importer, felt these effects, adjusting prices to remain competitive amid limited inventories and delayed supplies from exporting regions. Concerns over potential disruptions in the Mississippi River due to weather further intensified inquiries and pushed prices up.
The price of raw materials also contributed to the hike. Despite a slight decrease at the start of Q1, the Citric acid market eventually saw falling prices and unified sentiment, partly due to strategic actions by the USA influencing global prices. Factors like reduced raw material costs and declining manufacturing activity in the USA led to lower prices as downstream enterprises adjusted procurement strategies.
Asia Pacific
In the first quarter of 2024, the pricing of Citric acid in the Asia-Pacific (APAC) region remained mostly stable, with some fluctuations in specific countries. In conclusion, the latest quarter-ending price for Citric acid in China was USD 720/MT FOB Shanghai with an average quarterly incline of 0.02%. The demand for Citric acid from industries like pharmaceuticals and food processing stayed consistent, supporting prices and maintaining a positive market sentiment. In February 2024, prices increased due to higher demand and low inventories, exacerbated by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further reduced availability.
After the holidays, there was a surge in purchasing both domestically and internationally, driven by consumer confidence and favorable sentiment, with traders benefiting from the Chinese currency depreciation against the USD. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders in anticipation of shortages. Additionally, the increase in raw material prices also contributed to the rise in Citric acid prices. In March, sustained demand from Chinese end-users led to higher prices, prompting increased production. When the market reopened after the holidays, prices surged due to the production ramp-up to meet domestic demand.
The pricing trends for Citric acid in the APAC region in the first quarter of 2024 were generally stable, although prices did decrease at the start of the quarter. This drop was influenced by year-end destocking activities from the previous month, which had a notable impact on market dynamics. Additionally, weakened demand downstream and sufficient inventories put pressure on Citric acid pricing. In the Chinese market specifically, prices also saw a decline due to weak demand.
Europe
Throughout the first quarter of 2024, the European market for Citric acid experienced a fluctuating landscape influenced by a myriad of factors. Ending the quarter at USD 895/MT CFR Hamburg in Germany, Citric acid prices saw a quarterly decline of 1.24%.
This decline was part of a broader downturn in the market, marked by reduced prices and a unified market sentiment, largely steered by Germany's strategic decisions. As a key importer, Germany's measures to uphold its global competitiveness, including adjusting pricing strategies, reverberated throughout the market. However, this was not the sole driver of market trends. The decrease in the cost of raw material in Germany, fueled by weakened demand projections and reduced manufacturing activity in the Eurozone, also played a significant role. The market responded to these dynamics by adapting pricing strategies and actively reducing inventories to avoid surplus stockpiles. Despite these efforts, challenges arose, such as declining local inquiries complicating destocking and export hurdles leading to order cancellations and delays. Seasonal factors and decreases in domestic raw material prices added further pressure on Citric acid prices, with discounted products saturating the market and consolidating the downward trend.
March saw a price increase, partially attributed to Germany's role as a key importing hub and its intricate ties with major exporting nations. The resumption of production activities in these exporting countries, along with the easing of trade disruptions and export momentum halts, provided some resilience to importing nations' market players.
For the Quarter Ending December 2023
North America:
In the North America region, the Citric Acid market in the fourth quarter of 2023 faced several significant factors that impacted prices. Firstly, until the first half of the quarter, there was an overall improvement in the domestic market situation, with increased demand and replenishment of inventories. This was driven by rising input-cost inflation and a surge in domestic inquiries, particularly due to the onset of the winter season. Additionally, the import market experienced supply challenges, with limited inventories among suppliers and a decrease in imports from key exporting countries from H2 of Q4 2023.
For the domestic market of Citric Acid, it witnessed a notable increase in Citric Acid prices throughout the quarter with prices inclining from $2370/mt to $2450/mt between October and December. This was influenced by rising wages and energy prices, which caused inflationary pressures throughout the supply chain. Furthermore, the decrease in import volume from China contributed to a high supply and lowered prices. The bulk ordering and replenishment of inventories by businesses further strained supply and pushed prices higher. Despite these challenges, the market outlook remained optimistic, with expectations of improved demand and steady behavior from buyers. Overall, the Citric Acid market in the North America region, specifically in the USA, faced challenges in supply and increased prices due to various factors. The market outlook remained optimistic, and the quarter ended with a Citric Acid price of USD 870/MT CFR New York in the USA.
APAC:
In the fourth quarter of 2023, the Citric Acid market in the APAC region witnessed several significant factors that impacted prices. Firstly, there was a global decline in prices due to decreased international demand, particularly from major exporting nations. This decline was driven by lower export prices from key Chinese provinces and surplus inventory among German suppliers. Secondly, South Korea, as a major player in the Citric Acid market, experienced a notable reduction in imports, indicating a shift towards accumulating inventory to meet domestic demand. This decrease in imports, coupled with limited supply and steady demand, contributed to a price surge in the country. Additionally, the South Korean Won appreciated by 3.94% against the USD, further influencing the pricing trend. Furthermore, the Consumer Price Index (CPI) in South Korea declined in November, reaching 112.74 points, reflecting subdued levels of activity in the domestic market.
The overall trend in the Citric Acid market in South Korea during the fourth quarter of 2023 was influenced by increased demand, both domestically and internationally. This demand was driven by heightened consumer purchases and the need to replenish inventories with fresh stocks. While the market experienced limited supply, production activities provided cost support to meet the rising demand. In conclusion, the Citric Acid market in the APAC region, particularly in South Korea, saw a price surge in the fourth quarter of 2023 due to increased demand, limited supply, and currency fluctuations. The market was also influenced by global factors such as declining prices in major exporting nations and surplus inventory among suppliers. The latest price of Citric Acid Anhydrous CFR Busan in South Korea for the current quarter is USD 770/MT.
Europe:
In the fourth quarter of 2023, the Citric Acid market in Europe experienced various factors that influenced prices and market dynamics. One of the primary reasons for the market fluctuations was the overall improvement in market conditions and increased demand from downstream industries. This resulted in a consistent rise in prices during the quarter. Another contributing factor was the availability of ample supply in the market, leading to a demand-supply imbalance and subsequent price adjustments. Additionally, the appreciation of the Euro against other currencies boosted the competitiveness of Belgian exports, leading to increased global demand and higher domestic prices. In Germany’s domestic market, Citric acid Anhydrous prices were recorded at $1620/mt at the quarter end.
In terms of Belgium, which experienced the most significant price changes, the market situation improved due to positive economic growth, rising employment, and consistent inflation rates. The country witnessed a slight increase in consumer price index (CPI) and core inflation, indicating improved consumer confidence and expenditure. However, there were no reported plant shutdowns during this period, with operating rates remaining high. Analyzing the price trends for Belgium in the fourth quarter of 2023, there was an overall decrease of 2% in prices compared to the first half of the quarter. This can be attributed to low demand from end-user industries and destocking activities. The quarter ended with a price of USD 1260/MT of Citric Acid FOB Antwerp in Belgium.
For the Quarter Ending September 2023
North America
Between July and September 2023, the CFR New York Citric acid prices saw an increase, climbing from $870 per metric ton to $896 per metric ton. This price uptick had a positive impact on the third-quarter results. The rising prices clearly signaled a preference for higher price levels, with an average quarterly increase of 0.17%. Throughout the quarter, the domestic citric acid market experienced growth, primarily driven by increased demand in various industries. Notably, limited to moderate inventory levels encouraged sellers to gradually raise prices each month, which significantly supported the optimistic price trend for Citric acid in the United States. Additionally, import costs rose in the latter part of the quarter due to fluctuations in the exchange rate between the US dollar and the Yuan. While inflation slowed down somewhat in the third quarter of 2023 due to significant shifts in the US economy, market participants remained watchful due to the Federal Reserve's decision to raise interest rates. Starting in July, there was a noticeable surge in warehousing costs, warehouse usage, and inventory expenses in the United States. As a result, commodities like Citric acid saw price increases due to the rising expenses associated with inventory management and storage. In summary, it's likely that importing countries followed a trajectory similar to that of exporting countries during this period.
Asia Pacific
During the third quarter of 2023, Citric acid prices experienced a notable rise, going from $ 745 per metric ton in July to $ 780 per metric ton FOB Shanghai by September. This trend indicated a strong inclination towards higher prices, representing an average quarterly increase of 0.89%. China, the world's second-largest economy, faced a slower growth rate than initially anticipated in the first half of 2023, which persisted into the second half of the year, casting a negative shadow over the beginning of the third quarter. This was mainly due to worsening deflation, elevated youth unemployment, and weak foreign demand. Several factors contributed to the price hike of Citric acid in China during this quarter, with the most influential factor being the strengthening of the Chinese Yuan (RMB) against the US dollar and increased local demand from end-user businesses. Concurrently, the prices of raw materials in the Chinese market saw an increase driven by rising energy costs. Market dynamics revealed supply constraints as acid factories maintained low inventories. While maintenance companies gradually resumed production, demand did not show significant improvement, leading to substantial market pressure. The increased value of the Yuan and the weakening US dollar raised export costs, affecting both local and foreign markets. Market players, meeting the general demand, kept their supplies relatively low, and manufacturing production remained steady throughout the period. The heightened demand and supply chain disruptions created an imbalance, resulting in upward pressure on prices. In the latter weeks of September, just before the Golden Week holidays, there was a slight increase in both freight and manufacturing due to a spike in demand and inquiries. Another factor contributing to the price surge was strategic bulk ordering by market participants looking to replenish their inventories. The heightened demand prompted many buyers to expedite their Citric acid procurement, intensifying overall demand pressures during the holiday season.
Europe
In the third quarter of 2023, the cost of citric acid followed a consistent trend, with a minor drop from $1230 per metric ton in July to $1240 per metric ton CFR Milano in September. This pattern indicated a noticeable price decline, resulting in an average quarterly decrease of 2.00%. In July, domestic citric acid prices saw a significant decrease due to sufficient inventories among domestic suppliers. This drop was also in line with the Chinese market, as China is a major citric acid importer. Additionally, weak demand and slow sales from end-users contributed to the declining prices. The price increase in the middle of Q3 was mainly driven by higher demand towards the end of 2023. Exchange rate fluctuations had a significant impact on the costs of imported chemicals, including citric acid. The Euro's devaluation led to higher prices in Italy, as a strong US dollar forced local businesses to pay more for imports from China. Speculators also invested more due to a strong trend in the spot market. Furthermore, rising energy costs increased the overall manufacturing expenses for citric acid, leading to an overall price increase. Economic factors, such as high inflation and a challenging manufacturing environment in Italy, continued to hinder growth, causing market investors to take a cautious "wait-and-see" approach. In summary, importing countries likely experienced a trajectory similar to that of exporting nations during this period.
South America
Between July and September 2023, the prices of citric acid in CFR Buenos Aires, Argentina, experienced an uptick, rising from $900 per metric ton to $925 per metric ton. This price increase had a positive impact on the third-quarter financial results. The increasing prices clearly indicated a preference for higher price levels, showing an average quarterly rise of 0.17%. In July, local citric acid prices saw a significant decline due to sufficient inventories among domestic suppliers. This decrease was in line with the situation in the Chinese market, as China is a major importer of citric acid. Additionally, weak demand and slow sales from end-users contributed to the decreasing prices. The price increase in the middle of the third quarter was mainly fueled by increased demand towards the end of 2023. This cost increase was primarily a result of heightened demand in the latter part of 2023, especially from India and China, the world's top citric acid producers. Furthermore, speculators increased their investments due to a strong trend in the spot market. At the same time, limited supplies from major exporting nations played a significant role in driving citric acid prices higher. Moreover, the rise in energy expenses has added to the overall manufacturing costs of citric acid, leading to a general price hike. China, the primary citric acid producer, has been experiencing shortages due to various factors, including power outages and flooding, resulting in higher global citric acid prices. While inflation moderated somewhat in the third quarter of 2023 due to significant shifts in the US economy, market participants remained cautious due to the Federal Reserve's decision to increase interest rates. Starting in July, there was a noticeable increase in warehousing costs, warehouse usage, and inventory expenses in South America. As a consequence, commodities like citric acid saw price increases due to the rising expenses associated with inventory management and storage. In summary, it's likely that importing countries followed a similar trajectory to exporting countries during this period.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, sporadic fluctuations between demand and supply during the month led to a significant drop in citric acid prices in the US market. This price is valued at the end of the second quarter of 2023 and represents an average quarterly decline of 10.40%. The US citric acid market slowed due to lower demand from downstream industries. This resulted in excess inventory and forced suppliers to cut prices. Continued US economic uncertainty and rising global inflation also contributed to the decline in demand. Furthermore, the war in Ukraine is a major uncertainty for the US economy. The hypothesis is that, despite falling energy prices, there is still significant underlying inflation that is far higher than the Federal Reserve's target. The fact that domestic Citric acid suppliers are having a sizable supply on hand that is allowing them to meet local demand. Market trading fundamentals were impacted by weak demand and high inventories. Retail sales fell due to high inflation. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers. In conclusion, the US Citric acid market is facing several challenges, including declining demand, excess inventory, and falling prices.
APAC
The market price of citric acid dropped significantly in the second quarter of 2023 due to weak domestic and international demand. The award was evaluated at the end of his second quarter of 2023 and was acquired with a quarterly average decline of 10.58%. China's import and export activities were mixed. Large market participants reported that buyers were reluctant to place large orders due to fears of further price declines. Freight traffic also increased in June, raising the index to 51.2 points. This is due to an increase in domestic and international trade. The warehouse utilization rate remained at a high level of 52.3 points in June as well. This is due to strong demand from the e-commerce and manufacturing sectors. Market conditions remained weak due to declining demand and lower purchases from the end-user industry. Currency fluctuations also continued to affect market development. Due to large inventories of citric acid, suppliers had to lower prices to reduce existing inventories. Some market participants are reducing inventories and improving cash flow. Uncertain economic conditions and rising inflation have reduced the demand for citric acid from the agricultural fertilizer and food industries. This halted trading and increased inventories as producers ramped up production. Citric acid prices fell further as raw material suppliers offered lower prices on the spot market.
Europe
In the second quarter of 2023, the demand for Citric acid decreased, leading to a decline in market prices. Citric acid prices fell by an average quarterly declination of 15.67%. with the commencement of Q2 2023, the prices were low as the cost of shipping goods by sea has decreased due to recent rates between China and Europe returning to pre-pandemic levels and a major reduction in congestion, both of which influence the citric acid market. Also, the German suppliers set down antidumping policies on the Chinese market for citric acid. The availability of domestic supplies and a decrease in demand in the local as well as in the international market impacted commodity prices. Germany’s Regional Citric acid market continued to be hostile throughout the second quarter. The manufacturing units have been forced to sell Citric acid at lower prices, but buyers are still waiting to see if prices will drop further. Import offers have increased this week, but they remain substantially below domestic prices. European buyers of Citric acid are delaying restocking due to a lack of end-user demand, and to destock their existing inventories to avoid damage. Also, considerably low consumer demand in downstream sectors and the suppliers' ability to meet local requests with their available inventories are to blame for the drop in Citric acid import prices. This has led to an increase in the supply of Citric acid, which has put downward pressure on prices.
For the Quarter Ending March 2023
North America
In the first quarter of 2023, the North American Citric acid market had fluctuating market sentiments as prices showed an unstable trend in the first half of the quarter before rising in the second. Prices rose in the first half of the quarter as a result of persistent market demand and enough supply to meet consumer demand. Due to an increase in market offtakes, prices kept increasing in the second half of the quarter. As we entered the third month of the quarter, prices started to fall as a result of the significant number of inventories in the domestic market, which also caused a decrease in the price of the product. Given that the domestic market was being destocked, a sizable number of items had their prices reduced. Because they were concerned about making a loss, the producers were forced to sell the goods at a lower margin. Toward the end of the quarter, the prices for Citric Acid were assessed around USD 1350/MT for CFR New York in March.
Asia Pacific
The Asia Pacific region's citric acid market experienced an increasing market trend in Q1 2023. The largest supplier of food additives in the world, China, was unable to supply the goods on time due to the approaching spring festival, which contributed to the product's price increase. Due to low stock levels among suppliers and buyers in both the Chinese and Indian markets, offtakes from the downstream food and beverage sectors grew throughout the quarter. The producers were ready to offer the goods for more money because of the restocking and upkeep occurring in their production facilities. Prices continued to rise during the quarter as a result of the domestic market's insufficient supply. Toward the end of the quarter, the prices were assessed around USD 1080/MT for Anhydrous FOB Shanghai in March.
Europe
In the first quarter of 2023, an increasing trend was observed in the European Citric acid market. Due to the market's rising demand and the limited supply required to meet customer demand, prices rose in the first half of the quarter. Prices rose in the second half of the quarter as a result of rising market offtakes. The decrease in domestic market stocks has also contributed to an increase in product pricing. The cost of a substantial number of items was raised as the domestic market was replenished. Because of the increased demand, producers were able to increase their profit margins. Toward the end of the quarter, the prices were assessed around USD 1380/MT for CFR Hamburg in March.
For the Quarter Ending December 2022
North America
Due to the protracted market unpredictability in the US, the price of Anhydrous Citric acid FOB Texas dropped from $2975/mt to $2750/mt from October to December 2022. Imports were limited during the first week of October due to the Chinese holiday known as Golden Week. The domestic suppliers' substantial stocks allowed them to meet the overall demand despite the fact that demand-related offtakes in the end-user sectors remained on the low side throughout the quarter. Supply chains were still in jeopardy for the majority of the quarter due to weather problems, Covid lockdowns in China, and upheaval in Ukraine caused by Russia.
Asia Pacific
During the 4th quarter of 2022, prices in the domestic Chinese Citric acid market somewhat decreased, with Anhydrous and Monohydrate values evaluating at $875/mt and $775/mt, respectively, in December. The first week of October saw a steady decline in orders for China's industry that manufactures Citric acid as a result of industrial facilities being closed for the Golden Week. Because Chinese traders had to contend with a variety of conflicting signals following a one-week hiatus, it was difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q4. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand.
Europe
The prices of European Citric acid showed a downward tendency in the fourth quarter of 2022, with CFR Hamburg values dropping from $1780/mt to $1550/mt in that period. Along with the rising energy and raw material prices, demand in Germany remained on the weaker side during the quarter, making it challenging for the pharmaceutical and nutraceutical businesses to plan ahead and stay afloat. Germany's industrial production only slightly grew in October despite rising energy prices and supply-chain worries. Nevertheless, the circumstances in Russia and Ukraine, as well as COVID-19 cases, all continued to have a detrimental effect on output.
For the Quarter Ending September 2022
North America
In the third quarter of 2022, the North American citric acid market had conflicting sentiments as prices decreased in the first half of the quarter before rising in the second. Due to continuous market demand and sufficient supply to meet consumer demand, prices stabilized in the first half of the quarter. Prices fell in the second part of the quarter because of a decline in market offtakes. A large amount of inventory on the domestic market has also contributed to a fall in the product's price. A substantial number of items had their prices lowered since the domestic market was being restocked. The producers were compelled to sell the goods at a smaller margin because they were worried about losing money. Towards the end of the quarter, the prices for Citric Acid were assessed at around USD 1350/MT for CFR New York in September.
Asia Pacific
The Asia Pacific region's citric acid market experienced a falling market trend in Q3 2022. Due to the relaxation of regulations following the COVID policy, product delivery from China, the world's largest supplier of food additives, was consistent. Because providers and purchasers in both the Chinese and Indian markets had enough stocks, offtakes from the downstream food and beverage sectors decreased throughout the quarter. Due to the destocking and maintenance taking place in their manufacturing facilities, the manufacturers were prepared to sell the items at a lower price. Because there were so many supplies on the domestic market, prices were constantly falling. Toward the end of the quarter, the prices were assessed around USD 980/MT for Anhydrous FOB Shanghai in September.
Europe
In the third quarter of 2022, a cyclical trend was observed in the European citric acid market. Prices stabilized in the first half of the quarter because of the market's consistent demand and the availability of enough supplies to satisfy consumer demand. Because there were fewer market offtakes, prices decreased in the second half of the quarter. A decrease in the product's pricing has also been aided by the substantial number of inventories on the domestic market. As the domestic market was being restocked, the prices were reduced on a sizable number of items. Due to their concern about losing money, the manufacturers were forced to sell the goods at a lower margin. Toward the end of the quarter, the prices were assessed around USD 1980/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North America
North American Citric Acid market showcased mixed sentiments during the second quarter of 2022 as prices decelerated in the first part of the quarter before increasing in the second. The return of COVID in China's commercial centers dramatically aggravated the import of citric acid into the US, which was already dealing with protracted port congestion. Concerns about the high pricing of food chemicals among domestic traders and customers persisted during the entire quarter due to factors including the US's surging inflation, the upheaval in Russia and Ukraine due to geopolitics, and the wildly fluctuating nature of oil prices. Demand from the region's downstream confectionary and food businesses remained robust throughout time.
Asia Pacific
During Q2 of 2022, the Citric Acid market in the Asia Pacific region stayed stagnant. Because China is the world's largest supplier of food additives, product delivery was, in fact, delayed following the covid outbreak in the second week of April. This made the nation's supply constraints and port bottlenecks worse. China's zero-tolerance regulations and legislation, which continued to obstruct manufacturing and logistics and created chaos with the transportation of different food additives and raw materials, put a burden on supply chains. The zero-covid policy led logistical and transportation networks to break down, significantly hindering the flow of goods across the country and to major international shipping ports. Offtakes from the downstream food and beverage sectors were constant throughout the quarter because suppliers and buyers in both the Chinese and Indian markets had sufficient stockpiles.
Europe
During the second quarter of 2022, the market for sodium methylparaben in the European region had a favorable trend. In terms of demand, offtakes in the end-user food and beverage sectors held steady throughout the quarter. Local merchants had a large supply of merchandise to meet the overall downstream demand in the European market. While shipping prices and the flow of goods into Europe continued to rise due to the crisis between Russia and Ukraine, it also made it harder for exporting countries to conduct business. The cost of shipping goods from China to Europe increased due to a shortage of empty cargo containers and Russia's invasion of Ukraine, which significantly affected international trade.
