For the Quarter Ending September 2024
North America
In Q3 2024, the North American Malic Acid market witnessed a notable increase in prices, driven by a confluence of factors. Heightened demand both domestically and internationally played a significant role in pushing prices upward. Supply challenges originating from major exporting regions, coupled with escalating production costs and geopolitical tensions, further fueled the price surge. Market activity intensified due to low inventory levels and increased purchasing ahead of anticipated market disruptions.
However, the prices did decrease at the beginning and at the termination of Q3, but the overall trend showcased a positive trajectory. The weak demand signals from neighbouring regions and subdued trading activity continued to push prices downward. Exporting nations also faced declining prices, adding further pressure on the U.S. market. Lower new orders reduced demand for inputs, leading to shorter supplier lead times for the first time in three months, contributing to the bearish market sentiment.
Overseas buyers remained cautious, purchasing only as needed, which weakened the already soft market. This persistent drop in buying interest and trading activity reflected a pessimistic outlook. The quarter-ending price of Malic acid CFR New York in the USA stood at USD 1833/MT with ana average quarterly inclination of 0.09%, indicating a consistent increasing sentiment in the pricing environment.
Asia Pacific
The Chinese Malic Acid market experienced notable volatility in Q3 2024, characterized by a general decline in prices. The prices recorded at the end of Q3 were USD 1514/MT FOB Shanghai with an average quarterly decline of 2.79%. This bearish sentiment stemmed from weakening demand, oversupply, and economic challenges within China's manufacturing sector. An explosion at Ningbo port on August 9 disrupted operations and impacted raw material supplies.
Q3 showed mixed trends, reflecting a decrease amid fluctuating price stability influenced by evolving supply-demand dynamics. Key factors influencing the market included persistent oversupply due to increased production capacities and aggressive inventory reductions. The fluctuating prices of raw materials, especially Maleic Anhydride, significantly impacted pricing strategies. Demand challenges were evident in the manufacturing sector, reflected by declining PMI figures and persistent deflationary pressures.
While the Logistics Market Index rose to 51.5% in August, indicating improved supply chain efficiency, manufacturing sector challenges and weak consumer confidence persisted. International trade dynamics also played a crucial role, with fluctuations in the yuan impacting export competitiveness and complicated by geopolitical tensions and high freight costs
Europe
Throughout Q3 2024, the Malic Acid market in Europe experienced a period of increasing prices driven by a combination of global and local factors. The market saw significant upward pressure on prices due to supply chain disruptions, rising input costs, and heightened demand across various industries. These factors, such as reduced vessel traffic, port congestion, and fluctuating demand, have contributed to the escalating prices of Malic Acid.
Netherlands, in particular, witnessed the most significant price changes during this quarter. The region experienced notable price fluctuations, reflecting the overall trends seen in the European market. The latest quarter-ending price for Malic Acid CFR Rotterdam in Netherlands stood at USD 2029/MT with an average quarterly inclination of 0.16%, signaling a consistent upward trajectory in pricing.
However, the prices did decrease at the termination of Q3. Lower energy costs have reduced production expenses, while global market shifts have impacted this significant importer. Weak demand from key end-use sectors has led companies to offload excess inventories, creating a market surplus and further driving prices down. Reduced freight and shipping costs have facilitated easier access to Malic Acid, exacerbating the oversupply. Consequently, traders are liquidating their holdings, leading to intensified competition and additional price reductions. Overall, the pricing environment in Europe for Malic Acid in Q3 2024 has been characterized by positive momentum, with prices steadily increasing.
For the Quarter Ending June 2024
North America
The second quarter of 2024 for Malic Acid in North America has been characterized by stable prices, with the market reflecting equilibrium between supply and demand dynamics. The pricing stability can be attributed to several key factors influencing market prices. Factors such as consistent production output meeting current demands, a balanced inventory level, and sustained demand from downstream sectors have contributed to the overall stability in prices. Additionally, the stable pricing environment has been influenced by consistent consumer sentiment and optimistic economic conditions, leading to a lack of significant price fluctuations.
In the USA, the market has witnessed the most significant price changes, with a notable -21% decrease compared to the same quarter last year. The quarter-on-quarter change recorded at -2% further emphasizes the downward trend in prices. However, despite these declines, the price remained consistent throughout the quarter, with no fluctuations observed between the first and second half. The quarter-ending price of USD 1810/MT of Malic acid CFR New York in the USA signifies the stable pricing environment prevailing in the region. This stability reflects a neutral sentiment in the market, indicating a balanced and steady pricing trend for Malic Acid in the USA during Q2 2024.
Asia Pacific
The Malic Acid market in the Asia-Pacific (APAC) region experienced a significant downturn during the second quarter of 2024, with China at the epicenter of the most dramatic price fluctuations. This period was characterized by a perfect storm of market challenges, creating a complex and volatile environment for industry participants. The primary factors driving this downturn included a substantial oversupply of Malic Acid, likely resulting from increased production capacities or stockpiling, coupled with a sharp decline in demand across various sectors. This demand reduction may have been influenced by broader economic slowdowns, changes in consumer preferences, or shifts in industrial applications of Malic Acid.
Compounding these issues were significant logistical challenges, possibly stemming from disruptions in global shipping, port congestions, or regional transportation difficulties, which further exacerbated the market imbalance. The geopolitical landscape also played a crucial role, with ongoing tensions between major economies potentially leading to trade restrictions, tariffs, or other barriers that impacted the free flow of Malic Acid in international markets. Moreover, a general weakening of consumer confidence, possibly due to inflationary pressures, job market uncertainties, or other economic concerns, led to reduced spending in industries that typically consume Malic Acid, creating a ripple effect throughout the supply chain.
China, as a key player in the global Malic Acid market, bore the brunt of these challenges. Even on a quarter-to-quarter basis, prices declined by 3%, indicating that the negative trend persisted throughout the early months of 2024. By the end of the quarter, the price for DL Malic Acid FOB-Shanghai had fallen to USD 1630 per metric ton, a figure that starkly illustrates the prevailing negative sentiment in the market.
Europe
The European Malic Acid market in the second quarter of 2024 initially demonstrated remarkable stability, characterized by consistent prices and minimal fluctuations due to stable supply levels, subdued demand, and normalized freight charges. Italy served as a key indicator of broader European trends, with its price movements closely aligning with regional patterns. For most of the quarter, there was no significant price variance, underscoring the persistent stability. However, as the quarter drew to a close, an unexpected and considerable surge in prices occurred, catching many market participants off guard. This late-quarter price increase was attributed to supply chain disruptions, a sudden spike in demand from key industries, speculative buying, and possible geopolitical events affecting trade dynamics. By the quarter's end, the price for Malic Acid FOB Milano in Italy stood at USD 3150 per metric ton, reflecting this last-minute surge and serving as a new benchmark for the European market. This sudden shift from stability to volatility presents both challenges and opportunities for industry stakeholders, introducing uncertainty into the market and potentially complicating long-term planning and contract negotiations. Looking ahead, market participants must remain vigilant to potential continued volatility and closely monitor the factors behind this unexpected price increase.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Malic acid in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Malic acid in the US was USD 1910/MT CFR New York, showing an average quarterly increase of 0.53%.
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 Malic 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 material, propionic acid, also contributed to the hike. Despite a slight decrease in the middle of Q1, the Malic 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 initial three months of 2024, Malic acid prices in the Asia-Pacific (APAC) region remained largely steady, albeit with some fluctuations in certain countries. Specifically, the closing price for Malic acid in China at the end of the quarter was recorded at USD 1770/MT FOB Shanghai, showing an average quarterly increase of 0.58%.
However, this period posed challenges for the APAC Malic Acid market, marked by a persistent decrease in prices. Several factors contribute to this downward trajectory. Firstly, there has been a drop in demand from downstream sectors, resulting in subdued buying activity. Additionally, market players have engaged in destocking endeavors, aiming to reduce their inventory levels, which has further driven prices down. China, in particular, has witnessed substantial price fluctuations in its Malic Acid market, with a consistent downward trend observed throughout the quarter.
Factors such as diminished domestic and international demand have led to an oversupply of Malic Acid, intensifying price pressures. The typical seasonal pattern, with the first quarter experiencing weaker demand, has also contributed to the overall price decline. Moreover, there is a clear correlation between reduced prices and decreased demand from downstream industries.
Europe
Throughout the first quarter of 2024, the European market for Malic acid experienced a fluctuating landscape influenced by a myriad of factors. Ending the quarter at USD 2075/MT CFR Rotterdam in Netherlands, Malic acid prices saw a quarterly decline of 3.94%.
This decline was part of a broader downturn in the market, marked by reduced prices and a unified market sentiment, largely steered by Netherlands's strategic decisions. As a key importer, Netherlands 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 maleic anhydride in Netherlands, 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 Malic acid prices, with discounted products saturating the market and consolidating the downward trend.
March saw a price increase, partially attributed to Netherlands'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 final quarter of 2023, the Malic Acid market in North America saw a decline, influenced by various significant factors affecting pricing. Initially, there was an overall reduction in demand from the international market, resulting in a price decrease. Furthermore, the build-up of excess inventory among suppliers in the USA added to the downward pressure on prices. The market also felt the effects of a constrained economic environment, driven by uncertainties in the global economy, inflation concerns, and the possibility of a recession.
Demand remained relatively low to moderate, marked by cautious procurement practices and a decrease in downstream inquiries. Zooming in on the USA, projections suggest that Malic Acid prices will continue to decrease until the quarter's conclusion. The root cause of this decline can be attributed to global market dynamics, where the USA, as a major importer, was influenced by trends in key exporting nations.
One primary contributor to this price drop was the significant reduction in prices seen in key Chinese provinces, which hold a crucial role in the Malic Acid market. The repercussions of China's pricing strategies had a ripple effect across the United States, impacting the overall pricing structure of Malic Acid. The latest price for Malic Acid CFR New York in the USA at the quarter's end is USD 1880/MT, reflecting an average quarterly decline of 2.67%.
Asia Pacific
In the APAC region, Malic acid experienced a decline in market sentiments during the fourth quarter of 2023, leading to a consistent decrease in prices. The primary factor contributing to these market fluctuations was the moderate to high supply of Malic acid. Weak market sentiment prevailed due to substantial existing inventories within the domestic market, coupled with low to moderate demand from end-user industries. China, being the largest market for Malic acid, witnessed a significant price drop in the initial months of the quarter due to weakened demand from both domestic and international consumers, along with low consumer confidence. According to reports from various manufacturers, local suppliers in China struggled with excess inventory, deterring them from engaging in bulk purchases. Analysts note that the economic impact varies across industries, with local companies facing an abundance of diverse supplements, including Malic acid. Furthermore, the Purchasing Managers' Index (PMI) exhibited an unexpected increase in November, indicating a sudden surge in industrial activity that peaked during the same month. Despite increased output, China's market faced the repercussions of weak foreign demand, leading to substantial price reductions from Malic acid suppliers. The stability of raw material prices, particularly Maleic Anhydride, in the Chinese market can be attributed to the significant influence of feedstock, particularly benzene. The pricing trend for China in the current quarter revealed a 2.90% decrease on an average quarterly basis. As of the latest update, the price for DL Malic Acid FOB-Shanghai in China for the current quarter is USD 1740/MT.
Europe
The European Malic Acid market encountered notable factors influencing prices during the fourth quarter of 2023 (Q4). Initially with the commencement of October, a pessimistic demand outlook prevailed across the region, leading to diminished buyer interest and limited demand from end-user industries. Additionally, local spot market suppliers maintained sufficient inventories, fostering stability in market sentiments. In November, a substantial increase in the prices of Malic Acid was observed as customer confidence improved, resulting in a notable rise in consumer purchases and heightened demand. This surge in demand exerted pressure on existing supply chains, causing a ripple effect on prices. The global escalation in freight costs significantly impacted the market dynamics for Malic Acid in Belgium. Compounding the challenges, market players faced shortages in inventories. Belgium, in particular, experienced the most significant price fluctuations during the quarter. In summary, the Malic Acid CFR Antwerp price at the quarter's end stood at USD 2820/MT, reflecting an average quarterly increase of 3.85 percent.
For the Quarter Ending September 2023
North America
From July through September 2023, Malic acid prices, as represented by CFR New York, experienced a significant decline, dropping from $2220 per metric ton to $1240 per metric ton, marking the conclusion of the third quarter. This price fluctuation clearly indicated a preference for reducing price levels, resulting in an average quarterly decrease of 4.39%. The domestic Malic acid market initially faced a downturn at the beginning of the quarter, primarily due to reduced demand across various industries. Importantly, the presence of high inventory levels compelled sellers to gradually lower their prices each month, contributing significantly to the pessimistic pricing trend for Malic acid in the United States. Moreover, the decreasing trajectory of the raw material, maleic anhydride, exacerbated the weakening market conditions in exporting countries. As September unfolded, prices began to rise due to increased costs associated with importing, driven by fluctuations in the exchange rate between the US dollar and the Yuan. Although there was a modest slowdown in inflation during the third quarter of 2023 due to significant shifts in the United States economy, market participants remained cautious due to the Federal Reserve's decision to raise interest rates. In the first week of September, there was a noticeable surge in warehousing costs, warehouse utilization, and inventory expenses in the United States. Consequently, commodities like Malic acid saw price increases as a result of rising costs related to inventory management and storage. In summary, it is likely that importing countries experienced a trajectory similar to that of exporting countries during this period.
Asia Pacific
In the third quarter of 2023, there was a noticeable decrease in the overall price of Malic acid. Prices declined from $2008 per metric ton in July to $ 1901 per metric ton (FOB Shanghai) in September. This price fluctuation indicated a significant change, resulting in an average quarterly drop of 3.79%. China, the world's second-largest economy, experienced slower growth in the first half of 2023, which continued into the second half, negatively affecting the beginning of the third quarter. This slowdown was primarily due to increased deflation, high youth unemployment, and weak foreign demand. At the same time, the prices of the raw material, Maleic anhydride, in the Chinese market decreased due to lower n-butane prices. The market showed ample supply, with factories maintaining substantial inventories. Although production gradually resumed, demand did not significantly improve, leading to a supply-demand balance and keeping the market weak during the first two months of Q3. However, by September, increased demand and disruptions in the supply chain caused an imbalance, leading to rising prices. The consistent demand for Malic acid from domestic and international markets and new inquiries contributed to this upward price trend. This occurred while considering the current conditions of the nations and the overall market situation. Regarding manufacturing, Malic acid production in the country was based on customer demand. 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 that drove up prices was strategic bulk orders from market participants looking to replenish their inventories. The heightened demand during the holiday season led many buyers to accelerate their Malic acid procurement, increasing overall demand pressure.
Europe
During the third quarter of 2023, Malic acid prices exhibited a consistent pattern, showing a slight decrease from $2830 per metric ton in July to $2520 per metric ton (CFR Antwerp) and from $2520 per metric ton in July to $2320 per metric ton (CFR Izmir) by September. This trend indicated a significant price decline, resulting in an average quarterly decrease of 3.98% and 3.34%, respectively. As Q3 began, the global Malic acid market experienced an oversupply, which led to a noticeable decrease in its market value. To exacerbate the situation, domestic traders accumulated substantial inventories of Malic acid and, in a strategic move to minimize losses, decided to reduce their price quotes, further contributing to the overall market downturn. This price reduction can be attributed to a significant drop in the cost of its primary raw material, Maleic anhydride, in the previous months. The decrease in Maleic anhydride prices subsequently lowered production costs for Malic acid manufacturers. Moreover, reduced raw material expenses have made Malic acid production more cost-effective, and these savings are being passed on to consumers. Additionally, a stable demand outlook for Malic acid has played a significant role in the price reduction. In summary, importing countries likely followed a similar trajectory to exporting countries during this period.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Malic acid prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. In addition, the downward trend in prices further intensified due to the global drop in phenol raw material prices. Retail sales fell due to high inflation. Retailers have also struggled with bloating inventory they ordered to meet surges in demand during the outbreak, despite stagnant demand. The price was valued at the end of Q2 2023, representing an average quarterly decline of 7.11%. Falling fares were another factor contributing to the slowdown in development. Imports are declining as US companies struggle to dispose of large inventories. The most important container port in the United States also saw a decline in the volume of imports. And despite stagnating demand, retailers are facing inflation in ordered inventory to meet increased demand during the pandemic and possible shortages in the future.
Asia
The market price of Malic acid declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 5.92%. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector is contracting. China's import and export activities were mixed. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. China CFR Shanghai Malic acid price chart market showed a downward trend in prices as negotiations progressed. Due to large inventories of Malic acid, suppliers have had to reduce prices to reduce existing inventories. In addition, this price trend was mainly due to a decrease in sales in final consumption areas, and there were no new inquiries from domestic and overseas suppliers. Prices of raw materials used to make Malic acid, such as maleic anhydride, also fell in June. This also contributed to the price drop. Meanwhile, the Chinese government has taken steps to cool the economy, including raising interest rates and tightening the money supply. In addition, market sentiment continued to be subdued due to declining buyer demand, lower sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants are reducing inventories to reduce inventories and improve cash flow.
Europe
In the second quarter of 2023, the demand for Malic acid decreased, leading to a decline in market prices. German Malic acid prices are trending downward as demand from downstream sectors and imports from exporting countries such as China and India slow down. The supply of Malic acid is increasing due to the expansion of production capacity in India, the world's largest Malic acid producer. This has increased the supply of Malic acid on the global market. However, the slowdown in the global economy has reduced demand for Malic acid. Also, speculators have sold Malic acid futures in anticipation of future price declines, putting downward pressure on prices. The government has also eased some restrictions on the importation of generic drugs, increasing the availability of generic versions of Malic acid. Malic acid price performance is heavily influenced by weak buying momentum and overstock. Tariffs between China and the West Coast of the United States have recently returned to pre-pandemic levels, significantly easing congestion, and as a result, ocean freight prices have also fallen, affecting general market conditions.
For the Quarter Ending March 2023
North America
The price trajectory for Malic Acid in the North American region started to drop in the first quarter of 2023. Prices started to decline from the beginning of Q1 2023 as a result of a decline in end-user sector demand. While oil prices fell significantly and the cost was negative for the downstream goods, the market for both the raw materials benzene and maleic anhydride had a downward trend. This backed up the downward tendency of Malic Acid. Moreover, providers maintained enough stocks, which kept the market weak. Also, the merchants were motivated to cut their prices by the simplicity of logistics and production costs. Also, the simplicity of freight charges and an unimpeded supply chain contributed to the downward market trend. Towards the end of Q1 of 2023, the prices for Malic Acid were assessed around USD 2920/MT for CFR New York in the month of March with an average quarterly declination of 6.38%.
Asia
The first quarter of 2023 saw a decline in the price trajectory for Malic acid in the Asia Pacific region. The price trajectory showcased fluctuating trajectory throughout. At the commencement of Q1 2023, the prices were recorded to roll down on the back of decreased demand from the end-user sector. The market for both raw materials, Benzene and Maleic anhydride, witnessed a downward trajectory as crude prices fell broadly, and the cost was negative for the downstream products. This supported the Malic Acid negative trajectory. Furthermore, enough inventories among the suppliers kept the market feeble. Also, ease in logistic and production costs propelled the merchants to lower their quotations. Towards the end of Q1 of 2023, the prices for Malic Acid were assessed around USD 2570/MT for FOB-Shanghai in the month of March with an average quarterly declination of 2.52%.
Europe
In the first quarter of 2023, the price trajectory for Malic Acid in the European region began to decline. Prices started to drop in response to a drop in end-user sector demand from the beginning of Q1 2023. The market for both the raw materials, benzene, and maleic anhydride, showed a declining trend, despite the fact that oil prices went dramatically down and the cost was negative for the downstream items. This supported Malic Acid's decreasing trend. Moreover, providers kept ample inventories on hand, which kept the market sluggish. The ease of transportation and low production costs also encouraged merchants to lower their pricing. An unhindered supply chain was another factor in the declining market trend.
For the Quarter Ending December 2022
North America
Due to ongoing offtakes and erratic market dynamics in the end-user food and beverage industries, the North American Malic Acid market showed a declining trend in the fourth quarter of 2022. Due to a decrease in demand from the food and beverage industries, prices declined in the first month of the quarter. Due to low sales and big stockpiles in China's domestic market, prices fell in the final month of the quarter. Malic Acid is mainly imported into the US from China, where the prices were declined in a nation as ports are already closed due to rising covid cases, and small-size orders are being accepted. Demand has lowered from the downstream food sectors in the region. Towards the end of Q4 of 2022, the prices for Malic Acid were assessed around USD 3560/MT for CFR New York in December.
Asia Pacific
The fourth quarter of 2022 saw a decline in the pricing trend for Malic Acid in the Asia Pacific area. Due to China's dominance as the world's top producer of Malic Acid, the substance's costs dropped in the first month of the quarter and continued to do so in the second. The nation's supply constraints and port backlogs were significantly resolved by the ease with which the Russia-Ukraine war on the Black Sea port. Due to reliable supply chains, several food additives and raw materials were supplied to foreign markets along with malic Acid. Moving forward with production and logistics was also hindered by the easiness of the war situation. Prices decreased in the last month of the quarter because of weak downstream sector demand and availability of supply on the domestic market. Towards the end of Q4 of 2022, the prices for Malic Acid were assessed at around USD 2780/MT for FOB-Shanghai in December.
Europe
The European Malic Acid market displayed inconsistent market sentiment in the fourth quarter of 2022. An increase in prices that began in the first month of the quarter and continued into the second, supported by strong domestic merchant demand on the worldwide market, was the main factor influencing this pricing pattern in the first half of Q4. The final month of Q4 had low local market demand, which resulted in lower product pricing and more readily available inventories to meet customer demand. Offtakes from the end-user food and beverage industry were modest throughout the quarter.
For the Quarter Ending September 2022
North America
Due to ongoing offtakes and erratic market dynamics in the end-user food and beverage industries, the North American Malic Acid market showed a fluctuating trend in the third quarter of 2022. Due to an increase in demand from the food and beverage industries, prices were raised in the first month of the quarter. Due to low sales and big stockpiles in China's domestic market, prices fell in the final month of the third quarter. Malic acid is mainly imported into the US from China, which raises the price in a nation where the ports are already frequently congested. Demand has fluctuated frequently for offtakes from the downstream food sectors in the region. Towards the end of Q3 of 2022, the prices for Malic Acid were assessed at around USD 5150/MT for CFR New York in September 2022.
Asia Pacific
In the Asia Pacific region, the pricing trend for Malic Acid fluctuated throughout the third quarter of 2022. Given that China is the world's top producer of Malic Acid, prices for the substance rose in the first month of the quarter and kept rising through the second. The Russia-Ukraine war substantially aggravated the nation's supply shortages and port backlogs. When different food additives and raw materials were shipped in the offshore markets, it created confusion and slowed down supply chains. This war problem also prevented manufacturing and logistics from moving forward. Due to sluggish downstream industry demand and an abundance of supply on the domestic market in the final month of the quarter, prices fell. Towards the end of Q3 of 2022, the prices for Malic Acid were assessed around USD 4003/MT for FOB-Shanghai in September.
Europe
In the third quarter of 2022, the European Malic Acid market showed erratic market sentiment. The key factor of this pricing trend in the first half of Q3 was an increase in prices that started in the first month of the quarter and continued into the second, supported by strong domestic merchant demand on the global market. Due to low local market demand in the final month of Q3, product prices were reduced, and inventories were also accessible to satisfy consumer needs. End-user food and beverage industry offtakes were low throughout the quarter. Towards the end of the Q3 of 2022, the prices for Malic Acid were assessed at around USD 4910/MT in Italy in September.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the North American Malic acid market displayed a static trend due to constant offtakes in the end-user food and beverage industries. Malic Acid is primarily imported into the US from China; therefore, the reappearance of COVID in the nation's commercial hubs significantly impacted the flow of Malic Acid into the country, where the ports were already experiencing chronic congestion. Throughout the quarter, several participants continued to express concern about the high cost of food chemicals due to various issues, including the US's soaring inflation, the geopolitical unrest in Russia and Ukraine, and the constantly fluctuating nature of oil prices. Offtakes from the region's downstream food sectors have consistently been strong in terms of demand.
Asia Pacific
The second quarter of 2022 saw no significant change in the pricing trend for Malic Acid in the Asia Pacific region. Given that China is the world's largest producer of Malic Acid, the covid outbreak in the first week of April harmed the market during H1 of Q2 2022. The country's supply shortages and port backlogs significantly worsened due to the covid tolerance policy. Supply chains were hampered by China's zero-tolerance regulations, which continued to block manufacturing and logistics and caused confusion when different food additives and raw materials were transported in the offshore markets. Logistics collapsed because of the zero-covid policy, severely obstructing the movement of goods in and out of the nation. Demand-wise, Offtakes from the downstream food and beverage sectors were stable throughout the quarter because suppliers and clients in the Chinese and Indian markets had enough stockpiles on their shelves.
Europe
The European Malic Acid market displayed optimistic sentiments in the second quarter of 2022. Low demand from domestic merchants on the international market because of an oversupply of inventory on hand to meet downstream demand is the main driver of this price trend. While shipping prices continued to rise and the flow of goods into Europe remained bothered due to the Russia and Ukraine conflict, it also made it harder for exporting countries to conduct business. Over the quarter, end-user food and beverage industry offtakes stayed steady.
For the Quarter Ending March 2022
North America
The North American market witnessed an upsurge in the prices of Malic Acid during the quarter 1st of 2022, backed by strong downstream demand. As the consumption of Malic acid has increased in food and beverage industries, so is the need for the same, resulting in its soared price value. The growing popularity of nutritional and functional foods in developed countries like the USA consequently caused a higher offtake of Malic acid. Furthermore, the rising need for energy drinks also added to the already augmented market for Malic Acid. Besides, propelled crude oil prices and logistic charges amidst the Russia-Ukraine conflict drove the Malic Acid prices upwards. In addition, labor shortage and congested ports are a few other factors that contributed mainly to the Malic Acid price hike. Hence, the evaluated prices of Malic Acid were USD 3970/MT at CFR New York during March.
Asia Pacific
The prices of Malic Acid soared in the Asia-Pacific region during the first quarter of 2022 because of increased demand from end-user industries. As Malic acid is the prime ingredient in most fruit-flavoured-based food liquids and powders, the consumption of Malic Acid is high in the food and beverage industry. Furthermore, in countries like India and China, the growing population led to enhanced demand. Besides, rising awareness around health and fitness further propelled the Malic Acid price value. Moreover, fuelled logistic charges and crude oil prices further influenced the Malic Acid market in the Asian domestic market. Conclusively, in India, Malic Acid Non-pharma grade prices were assimilated at INR 169120/MT (USD2205.90/MT) Ex-Depot Chennai during March. Likewise, the assessed price value of DL Malic Acid in the Chinese domestic market was USD 3500/MT at FOB Qingdao in March.
Europe
Following the trend in Asia and North America, the prices of Malic Acid in Q1 2022 rose in the European countries as well by nearly 5%, on the back of firm demand from downstream industries. Due to the growing urbanization and health concerns, the usage of Malic Acid increased in the food and beverage industries, which further caused a high demand for the same. Furthermore, the rising consumption of energy drinks amongst fitness-conscious individuals and athletes augmented the offtake of Malic Acid. In addition, the enhanced crude oil prices and freight charges owing to the continued war tensions between Russia and Ukraine further pushed the Malic acid prices upwards.
For the Quarter Ending December 2021
Asia Pacific
In the Asia Pacific region, the pricing trend of Malic Acid remained stagnant throughout the 4th quarter of 2021. In the Chinese domestic market, the prices of Malic Acid hovered around USD 2238/MT and USD 2285/MT in Q4 2021 on the back of the stable demand and rising feedstock prices. In India, the price trend observed a downward trajectory in the domestic market as the Ex-Depot Chennai prices deescalated from USD 2698.57/MT to USD 2282.32/MT from October to December. Under optimism for demand due to the festive season, Malic Acid's price rose marginally in October, which bolstered the demand from the downstream personal care sector. Several traders quoted higher prices to improve their profitability, as the rising input cost squeezed producers’ margins since the beginning of Q1. Furthermore, skyrocketed freight cost remained the major reason behind the price fluctuations.
Europe
In Europe, the domestic market of Malic Acid showcased mixed sentiments during the fourth quarter of 2021. The prolonged supply bottlenecks, worker shortages, port congestion, on and off of covid restrictions at ports, and high container freight rates have contributed to the market trend of Malic Acid across the region. The demand remained stable from downstream food and beverages and personal care industry throughout Q4.
