For the Quarter Ending December 2024
North America
The Fumaric Acid market in Q4 2024 exhibited notable volatility, driven by fluctuating supply-demand dynamics. Early in the quarter, prices surged due to increased demand from the pharmaceutical and nutraceutical sectors, limited supply, and disruptions from China’s Golden Week. However, as the quarter progressed, inventory levels increased, while demand from downstream industries softened, leading to price declines.
Market sentiment was also impacted by global supply chain challenges, including higher import costs due to a weakened US dollar, and rising freight rates. Toward the end of November, strong demand ahead of the festive season and supply constraints from China pushed prices upward again, creating a sellers' market.
In December, U.S. prices declined due to inventory adjustments by local suppliers and competitive pricing from Chinese imports, while stable downstream consumption supported steady demand. Despite increased U.S. imports and strategic pricing from suppliers, port congestion and ongoing tariff uncertainty added to market instability. By the end of December, prices dipped, reflecting a 2.01% decline as suppliers cleared excess stock, highlighting a shift in the market driven by pricing dynamics over demand fundamentals.
Asia Pacific
The Fumaric acid market in Q4 2024 experienced fluctuating prices influenced by supply-demand dynamics, economic conditions, and seasonal adjustments. Early October saw stability with prices maintaining levels from the previous period, aided by steady demand and temporary suspension of activities in China. However, as the quarter progressed, oversupply and weak consumer sentiment put downward pressure on prices.
Despite some price increases in mid-October, driven by strong export activity and raw material price adjustments, the market remained sensitive to supply chain challenges. By late October, prices dropped due to higher inventories and reduced purchasing power. In November, Fumaric acid prices initially rose, fueled by demand in export markets, especially India’s food preservative sector during the festival season. This uptick was short-lived, and by early December, prices fell again as supply-side pressures intensified, with excess inventory and weak demand dampening market sentiment.
Despite some recovery toward the end of December, driven by tight supply conditions and stronger demand, the overall trend in Q4 was marked by volatility, with prices fluctuating due to ongoing oversupply and seasonal influences.
Europe
The fourth quarter of 2024 in the German Fumaric Acid market has been characterized by fluctuating prices, primarily influenced by strong demand and persistent supply chain disruptions. Prices rose sharply early in the quarter due to increased procurement driven by anticipation of China’s Golden Week, logistics delays, and supply shortages.
These conditions were further exacerbated by rising import costs, currency fluctuations, and limited shipping availability. By mid-November, prices began to decline slightly as demand softened, and production costs decreased, aligning with a broader global market downturn. However, the market remained sensitive to disruptions, including fluctuating import costs and global economic trends, keeping the market tight.
Toward the end of December, prices stabilized with slight increases, driven by continued procurement activity and higher demand from downstream industries. The market's overall trend was bearish for much of the quarter, characterized by cautious trading and soft demand, with occasional upticks linked to supply tightness. The outlook for the German Fumaric Acid market in Q4 remained cautious, driven by economic uncertainty and reduced consumption.
For the Quarter Ending September 2024
North America
Throughout Q3 2024, the North American Fumaric Acid market witnessed a persistent decline in prices, influenced by several key factors. Oversupply in the market, coupled with weak demand both domestically and internationally, has been a significant driver of the downward pricing trend. Reduced demand from downstream industries, lower production costs in key manufacturing countries, and intensified pricing competition have further contributed to the negative market sentiment.
The USA, experiencing the most significant price changes, has seen a consistent downtrend in Fumaric Acid prices. Additionally, the price stagnation of raw material Maleic anhydride in exporting and manufacturing nations, driven by oversupply and subdued demand, further contributed to the downward pressure on prices. The quarter-ending price in the USA stood at USD 1273/MT of Fumaric acid CFR New York with ana average quarter decline of 1.44%, reflecting the overall decreasing pricing environment in the region.
Additionally, U.S. buyers have postponed new purchases, anticipating further price reductions, which has exacerbated the supply-demand imbalance. Companies are also liquidating their stockpiles to reduce storage costs and avoid product spoilage, increasing market supply and further driving down prices. This trend indicates a challenging market landscape characterized by subdued demand, oversupply, and pricing pressures.
Asia Pacific
In Q3 2024, the APAC region witnessed a challenging period for Fumaric Acid pricing, characterized by a consistent decrease in market prices. Several significant factors influenced this downward trend. Oversupply and weakened demand dynamics played a pivotal role in driving prices lower. Increased production capacities, surplus inventory levels, and subdued market demand further exacerbated the pricing decline. Seasonal factors, such as scheduled manufacturing plant shutdowns, added pressure to destock inventories, particularly for heat-sensitive products like Fumaric Acid.
Additionally, the drop in raw material costs, notably Maleic Anhydride, contributed to the price decline. Maleic Anhydride prices fell by 6-7% due to lower crude oil prices and a subsequent decrease in refinery product prices. This decline in upstream costs has been a significant factor in the decreasing prices of Fumaric Acid. Weak demand for Maleic Anhydride in the domestic market, has reinforced the bearish sentiment in the Fumaric Acid market. This suggests that prices may remain under pressure in the near term.
Within China, the market experienced the most significant price changes, reflecting broader trends in the region. Seasonal shifts and logistical challenges further contributed to the bearish sentiment. Ultimately, the quarter-ending price of USD 1026/MT of Fumaric Acid -FOB Shanghai with an average quarterly decline of 3.44% in China signified the prevailing negative pricing environment in the region.
Europe
Throughout Q3 2024, the European Fumaric Acid market experienced a consistent decline in prices, with Germany notably witnessing the most significant price changes. Several factors contributed to this downward trend. Germany’s position as a major importer has further amplified the influence of global market dynamics, contributing to the overall price decline Reduced production costs in key manufacturing regions allowed for more competitive pricing strategies, leading to an oversupply of Fumaric Acid in the market.
Weak international purchasing activities further exacerbated the situation, resulting in ample domestic inventories and subdued demand levels. This imbalance between supply and demand created a buyer's market dynamic, putting pressure on prices to decrease steadily. Furthermore, reduced freight charges and lower shipping costs have facilitated the movement of Fumaric Acid, supporting this downward price trajectory
In Germany, the market showcased a negative trend with notable price fluctuations. Ultimately, the quarter ended with Fumaric Acid priced at USD 1178/MT CFR Hamburg in Germany with an average quarterly decline of 2.44% underscoring the prevailing downward pricing environment throughout Q3 2024.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Fumaric Acid market exhibited stable pricing trends, reflecting a consistent equilibrium. This stability was driven by a steady balance between supply and demand dynamics, primarily due to sufficient inventory levels maintained by suppliers. Additionally, production costs remained relatively stable, supported by consistent raw material prices. The lack of volatility in key cost drivers contributed to the maintenance of steady Fumaric Acid prices throughout the quarter.
Furthermore, the industry observed minimal fluctuations in transportation and logistical costs, which typically influence market prices. The absence of significant geopolitical disruptions also played a crucial role in maintaining a stable pricing environment. Market participants adopted a cautious approach, refraining from aggressive purchasing or selling, further contributing to price stability.
Focusing on the USA, the market remained stable with no significant seasonal variations affecting prices. The correlation between supply and demand dynamics remained consistent, resulting in no substantial price deviations. The price comparison between the first and second half of the quarter showed no change, further emphasizing the stable market environment. Concluding the quarter, the price of Fumaric Acid in the USA was USD 1325/MT CFR New York, with an average quarterly decline of 1.66%, reflecting a balanced market driven by consistent supply and demand, stable production costs, and minimal external influences.
Asia Pacific
In the second quarter of 2024, the Fumaric Acid market in the APAC region faced a significant decline in prices. This downturn was driven by a combination of increased supply, unfavorable currency fluctuations, and heightened geopolitical tensions. Market sentiment remained predominantly negative, largely due to an excess of inventory and reduced demand from both domestic and international markets. The devaluation of local currencies against the US Dollar further compounded the issue, diminishing the competitiveness of exports and leading to higher domestic stock levels and subsequent price reductions. Geopolitical tensions also disrupted trade routes, resulting in increased freight charges and further dampening demand.
China experienced the most notable price changes within the region. The overall trend in China showed a consistent downward trajectory, influenced by seasonal factors such as strategic destocking ahead of summer shutdowns to prevent quality degradation of powdered products like Fumaric Acid. This seasonality had a clear correlation with the price changes, contributing to a steady decline. By the end of the quarter, Fumaric Acid prices in China stood at USD 1130/MT FOB Shanghai, marking an average quarterly decline of 2.45%. This reflects the challenging pricing environment driven by the interplay of supply surplus, geopolitical disruptions, and currency depreciation.
Overall, the pricing landscape for Fumaric Acid in Q2 2024 was notably challenged. The confluence of increased supply, geopolitical tensions, and currency depreciation contributed to persistently negative market sentiment. As the market navigates these headwinds, stakeholders will need to closely monitor these factors to strategize effectively for the upcoming quarters.
Europe
In Q2 2024, the European Fumaric Acid market experienced a notable decline in prices due to a combination of global supply dynamics and weakened demand. The quarter saw reduced production costs in exporting countries, allowing manufacturers to offer lower prices, further driving the downward trend. Key factors contributing to this market behavior include manufacturers' efforts to clear surplus inventories to avoid escalating storage costs and mitigate risks of product deterioration. Additionally, a downturn in global purchasing activities led to ample domestic inventories, further dampening demand and tilting the market in favor of buyers, resulting in persistent price erosion.
Germany, in particular, witnessed the most pronounced price fluctuations, with a clear negative trend. Historical pricing patterns and seasonal factors indicate that Q2 is typically not favorable for Fumaric Acid price increments, and this year followed suit. A comparison between the first and second half of Q2 revealed an additional 2% drop in prices, highlighting a consistent downward trajectory.
By the end of Q2, the price of Fumaric Acid in Germany settled at USD 1260/MT CFR Hamburg, reflecting an average quarterly decline of 2.92%. This encapsulates the overall negative sentiment of the quarter, driven by oversupply and diminished demand. The pricing environment remains challenging for producers and sellers, as the market continues to face significant downward pressure.
For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Fumaric acid market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Fumaric acid priced at USD 1400/MT CFR New York, showing an average quarterly increase of 2.51%.
A significant driver of these price changes was the sustained demand from the downstream sector, prompting bulk orders and subsequent proactive price hikes by market participants. Geopolitical tensions and trade disruptions, such as disturbances in crucial shipping routes like the Red Sea and the Suez Canal, also played a role in the price volatility. These disruptions led to higher freight charges and logistical bottlenecks, further impacting pricing dynamics. North America's heavy reliance on Fumaric acid imports, particularly from China, was a notable factor influencing market trends. Fluctuations in Chinese production, including pauses during the Lunar New Year and Spring Festival, resulted in constrained shipments and limited US inventories, prompting market players to adjust their quotes to protect profit margins.
In exporting regions, prices surged due to insufficient inventories and delayed supplies, prompting US market players to make bulk orders to ensure ample stocks, which worsened the price hike. External factors like the National Oceanic and Atmospheric Administration's warning of potential Mississippi River bottlenecks for the third year in a row due to warm, dry spring weather and low winter snowpack added to worries about shipment disruptions. This led to increased inquiries from US market players to exporting nations, further driving up prices.
Asia Pacific
In Q1 2024, the Fumaric acid market in the APAC region, particularly in China, experienced notable price fluctuations but maintained an optimistic trend, with prices steadily rising. By the end of the quarter, Fumaric acid's price in China reached USD 1229/MT FOB Shanghai, showing an average quarterly increase of 1.02%.
This positive pricing trend was driven by several factors. Increased demand from downstream sectors, along with rising raw material costs like maleic anhydride, contributed to the price hike. Limited supply and transportation challenges further pushed prices up. International demand also intensified, especially after the Lunar New Year break, stimulating a resurgence in the market. Despite temporary slowdowns during the holiday period, both regional and global interest in fumaric acid bounced back strongly. A robust export market in China supported prices, although transportation delays and higher shipping costs due to increased demand posed challenges. Overall, the market is experiencing price increases due to scarcity, with demand outpacing supply, indicating a need for market equilibrium. Moreover, external factors such as trade disruptions in the Red Sea have exacerbated the situation, resulting in escalated freight costs and diminishing foreign orders.
Europe
During the first quarter of 2024, the European market for fumaric acid, particularly in CFR Hamburg, Germany, experienced pricing fluctuations influenced by several factors. Despite concluding at USD 1390/MT with a modest 2.02% quarterly incline, the market generally trended upwards due to heightened demand from downstream sectors. This demand surge, along with global supply chain disruptions, especially in the Red Sea region, caused shipment delays and material shortages, thereby driving prices up. Currency fluctuations, such as the Euro's depreciation against the dollar, further complicated matters, impacting import costs and freight charges.
The German fumaric acid market experienced a significant recovery, marked by rising prices and a balanced supply-demand scenario. This resurgence was fueled by increased regional orders and a gradual reduction in inventory levels by merchants. Additionally, the rise in prices of crucial raw materials and the Euro's devaluation against the dollar played roles in shaping market dynamics.
Germany's position as a major importing hub contributed to market conditions, closely linked to exporting nations' trends. The resumption of production in exporting countries after holiday breaks and the easing of trade disruptions further supported market resilience across importing nations. Overall, the fumaric acid market in Europe experienced fluctuations driven by demand spikes, supply chain disruptions, and currency fluctuations, with Germany's market playing a pivotal role in regional dynamics.
