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.
