For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American market for Tartaric acid experienced a mixed performance, marked by significant price fluctuations, particularly in the USA. The quarter commenced with a surge in prices that continued until mid-quarter but ultimately gave way to a decline as it neared its end.
The early increase in prices was driven by several key factors. A notable contributor was rising consumer optimism regarding business conditions, which positively impacted demand for Tartaric acid. Additionally, supply chain disruptions played a critical role; blank sailings resulting from ships rerouted around the Cape of Good Hope (COGH) due to severe congestion at major ports in both Asia and North America limited the availability of Tartaric acid, further driving up prices. However, as the quarter advanced into September, prices began to decrease. This decline was largely attributed to a downturn in consumer demand, which was influenced by ongoing economic uncertainties. The political landscape, particularly the impending presidential election in November, caused consumers to adopt more cautious spending habits. Furthermore, concerns about potential tariff increases on Chinese imports contributed to a more pessimistic market outlook, placing additional downward pressure on Tartaric acid prices.
By the end of the quarter, the price settled at USD 2,210 per metric ton for L+ Tartaric Acid on a CFR New York basis. This figure highlights the complex interplay of factors influencing the market, including consumer sentiment, supply chain disruptions, and prevailing economic conditions.
Asia Pacific
In Q3 2024, the pricing landscape for Tartaric acid in the APAC region exhibited a mixed trajectory influenced by several significant factors. In July and August, prices saw an upward trend, driven by robust global demand, particularly fueled by strong export activities from Asia to key markets such as North America and Europe. This surge in demand was partially attributed to proactive measures taken by foreign importers, who placed larger orders to mitigate potential shortages. However, as September approached, prices began to decline due to a combination of factors. A notable decrease in demand occurred as global economic uncertainties undermined consumer confidence, leading to a slowdown in purchasing activity. This decline was further compounded by heightened competition within the pharmaceutical sector, which intensified pricing pressures and compelled suppliers to reduce their prices in order to remain competitive. As Q3 drew to a close, Tartaric Acid prices in China settled at USD 2,060 per metric ton for L+ Tartaric Acid on an FOB Shanghai basis, marking the quarter's ending price. This final figure reflects the complex interplay of demand dynamics and competitive market forces that characterized the Tartaric acid market throughout the quarter.
Europe
In Q3 2024, the European market for Tartaric acid displayed a mixed trend, shaped by a variety of interconnected factors. Prices initially rose until mid-quarter, bolstered by steady demand from end-users, which provided a solid foundation for price growth. The easing of inflation in Germany to 2% annually also played a crucial role, alleviating some financial pressures on consumers and enhancing their purchasing power. This improvement positively affected the demand for pharmaceuticals, including Tartaric acid. However, as September approached, prices began to decline significantly. A key factor behind this downturn was a marked drop in demand, representing the most rapid decline seen in recent months. In response to this weakening demand, market participants reacted by cutting prices in an effort to stimulate sales, which further accelerated the downward trend in Tartaric acid prices. As Q3 2024 comes to a close, the price of L+ Tartaric Acid-CFR Hamburg in Germany is recorded at USD 2,155 per metric ton. This price point highlights the challenges faced in the market, including fluctuations in demand and the broader economic conditions impacting pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, Tartaric Acid pricing in North America exhibited a mixed trajectory influenced by various market factors. The quarter began with rising prices, followed by a decrease in the middle, and concluded with another increase. Market conditions within the USA played a pivotal role, with consumer sentiment and economic indicators significantly impacting demand and prices.
In April, prices declined as overall business activity in the domestic market contracted, driven by a reduction in new orders due to consumer reluctance to spend amidst sluggish economic conditions. The Federal Reserve's decision to maintain high interest rates aimed at curbing inflation inadvertently eroded consumer purchasing power, tempering overall demand. However, in the middle of the quarter, prices rose, attributed to a continued improvement in consumer demand in the USA. U.S. consumer confidence unexpectedly improved in May after three consecutive months of decline, buoyed by optimism about the labor market. Despite this temporary improvement, prices fell again towards the end of the quarter due to weaker-than-anticipated demand, marked by a significant decrease in fresh orders and a contraction in the order backlog. These occurrences, coupled with diminishing new product orders and reduced expenditure, indicated a gradual economic deceleration.
A year-over-year comparison showed a modest 1% decline, reflecting a slight reduction in demand and stable supply conditions. From the previous quarter in 2024, prices decreased by 2%, underscoring a gradual economic slowdown and cautious consumer behavior. The latest quarter-ending price for L+ Tartaric Acid in the USA settled at USD 2180/MT CFR New York.
APAC
In Q2 2024, the Tartaric Acid market in the APAC region displayed varied pricing trends, starting with a decrease at the beginning of the quarter, followed by an incline in the middle, and another decline towards the end. In China, which saw the most pronounced price fluctuations, the overall trends reflected the broader APAC sentiment. Several key factors contributed to the price decline in April. Subdued demand from end-user industries, both domestically and internationally, significantly pressured prices. Additionally, ample supply conditions exacerbated the oversupply issue, leading to competitive price reductions as market participants struggled to clear existing stock. Logistical disruptions and rising shipping costs, particularly due to geopolitical tensions, further added to supply chain challenges, diminishing buyer enthusiasm and curbing price stability. However, prices increased in May as steady consumer demand combined with limited domestic supply created a seller-friendly market environment. A decline in China's factory activity indicator in May, driven by a drop in output, indicated a potential reduction in production capacity. This slowdown in manufacturing output further constrained supply, prompting market participants to quote slightly higher prices. Despite this brief improvement, prices fell again in June due to pessimistic market sentiments. Within China's economic environment, companies faced numerous obstacles, including waning consumer demand and escalating financial pressures, which contributed to the downward trend in Tartaric Acid prices. The quarter ended with the price of L+ Tartaric Acid-FOB Shanghai stabilizing at USD 1990/MT, reflecting the ongoing adverse market conditions.
Europe
In Q2 2024, the European Tartaric Acid market experienced fluctuating prices due to complex supply and demand dynamics, consumer sentiment, and broader economic influences. Early in the quarter, prices fell, driven by weak market sentiment. This decline was marked by a sharp drop in new orders and total sales volumes, putting significant downward pressure on prices. Inflationary pressures, heightened by strong energy and food prices, further eroded consumer sentiment and exacerbated the price drop. However, in May, prices saw an uptick as demand from end-user industries such as pharmaceuticals, food, and supplements improved compared to the previous week. Market participants maintained adequate inventories, ensuring stability in the supply chain and enabling a quick response to market needs. Despite this, prices fell again in June due to insufficient genuine demand in the domestic market. Consumers were hesitant to spend money due to ongoing concerns about persistent inflation and high-interest rates, leading downstream sectors to adopt a cautious "wait and see" approach. By the end of the quarter, the price of L+ Tartaric Acid-CFR Hamburg in Germany was USD 2120/MT.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the pricing dynamics of Tartaric acid in North America, particularly in the USA, were shaped by a variety of factors. Despite fluctuations, the overall pricing trend for Tartaric acid in this period remained positive, with prices steadily increasing. A significant driver of this trend was the heightened demand from downstream industries, notably in food, pharmaceuticals, and healthcare, which pushed prices upward.
In the USA specifically, Tartaric Acid prices rose due to tightened warehousing capacity, resulting in higher storage and distribution costs passed on to consumers. This increase was further fueled by a surge in demand from downstream industries, intensifying pricing pressures. Additionally, anticipation of the spring festival in China prompted proactive measures from market retailers and distributors to bolster their inventories, driving demand and prices even higher. Furthermore, disruptions in critical maritime routes like the Red Sea and Panama Canal posed challenges to shipping and import logistics, adding to the pricing pressures.
Overall, the pricing environment for Tartaric Acid in North America during the first quarter of 2024 can be characterized as positive with minor fluctuations. The quarter concluded with L+ Tartaric Acid-CFR New York priced at $2300 per metric ton.
Asia Pacific
In the first quarter of 2024, Tartaric acid prices in the APAC region showed a consistent upward trajectory. Various factors played into this trend, including sustained demand from industries like food, pharmaceuticals, and cosmetics. Additionally, disruptions in the global supply chain and adverse weather conditions contributed to the price surge. In China specifically, demand steadily increased from January onwards, continuing to strengthen through March, indicating a positive shift in market sentiment. The quarter saw significant improvement, marked by rising prices, signaling a more balanced relationship between supply and demand. This upward trend allowed participants in the Chinese market to maintain healthy profit margins throughout the quarter. Even during the Lunar Chinese New Year holidays, the domestic Tartaric acid market remained active, supported by strong manufacturing activities and ample inventory availability. Furthermore, global demand for Tartaric acid, especially from the pharmaceutical and other sectors, added complexity to supply-demand dynamics, further impacting market trends. The quarter concluded with a price of USD 2095 per metric ton FOB Shanghai, reflecting the prevailing market conditions.
Europe
In the first quarter of 2024, the Tartaric Acid market in Europe witnessed an overall uptick. Geopolitical tensions and logistical hurdles continued to strain the supply chain, resulting in limited availability of Tartaric Acid. Moreover, heightened demand from the food, beverage, and pharmaceutical sectors further impacted the market dynamics. Germany, being a significant player in the European market, faced similar challenges with Tartaric Acid prices. The onset of Chinese New Year festivities in mid-February prompted many suppliers to adjust their prices in anticipation of the market slowdown during the holiday period. Concurrently, prolonged disruptions in the Red Sea complicated trade routes between Asia and Europe, leading to increased freight costs that influenced the pricing landscape of Tartaric acid in Germany. Furthermore, the moderation of inflation in Germany spurred increased spending by businesses and consumers, contributing to additional price hikes. Additionally, industry players capitalized on the favorable market conditions to quote higher prices, taking advantage of the prevailing demand-supply imbalance. By the end of the quarter, the price for Tartaric Acid in Germany stood at USD 2260 per metric ton for L+ Tartaric Acid-CFR Hamburg, reflecting the prevailing market dynamics.
For the Quarter Ending December 2023
North America
The North American market for Tartaric Acid in the fourth quarter of 2023 saw several key factors impacting the pricing and market dynamics. Firstly, the market witnessed a surge in demand driven by the holiday season, particularly in the United States. The increased consumer spending during events like Thanksgiving and the Black Friday contributed to an overall rise in Tartaric Acid prices. Additionally, the scarcity of the primary raw material, maleic anhydride, further drove up the cost of production, impacting the pricing of Tartaric Acid. Furthermore, the depreciation of the US dollar against foreign currencies resulted in more expensive imports, leading to a constrained supply in the domestic market and further elevating prices.
Despite concerns about inflation and higher interest rates, consumers exhibited a willingness to spend, sustaining the demand for Tartaric Acid and contributing to the price increase. Overall, the market situation can be described as escalated, with high demand and limited supply. In the United States, Tartaric Acid prices increased by from October to November 2023. This rise can be attributed to increased consumer spending during major shopping events like Cyber Monday and Black Friday. However, Tartaric acid prices saw a decline in December, primarily due to reduced demand from downstream industries and an ample supply in the market. The acceleration of inflation in the USA, leading to increased living costs, prompted consumers to exercise caution in their spending, affecting the overall demand for Tartaric acid and contributing to a downward price trend.
Overall, the pricing trend for Tartaric Acid in the USA is expected to remain higher, with steady demand from end-users and improved business sentiments. The latest price of L+ Tartaric Acid-CFR New York in the USA for the current quarter is $2120 per MT.
APAC
In Q4 2023, the global Tartaric Acid market experienced a moderate to high supply and weak demand, mainly due to weakened domestic demand, leading to deflationary pressures. China, being the largest market for Tartaric Acid, faced ample supply due to lack of major orders, fierce market competition, and disrupted supply chain during the national holidays. The market situation remained unstable despite the government's efforts to boost growth, and manufacturing activity contracted for the second month, indicating weakening momentum. The demand for Tartaric Acid faced a decline from significant export markets, particularly Europe and USA, linked to the maintenance of higher interest rates by central banks. However, end-consumer demand for Tartaric Acid consistently exceeded the available stock in the market, resulting in increased prices. The recent devaluation of the Chinese yuan against the US dollar resulted in cheaper exports to other countries, driving up prices. The market's restricted availability of supplies forced market members to raise their Tartaric Acid price expectations. The latest price for L+ Tartaric Acid-FOB Shanghai in China for Q4 2023 is USD 1963/MT. In summary, the unstable market situation in China due to weak demand and moderate to high supply resulted in stable prices, with a minor price change in India and a significant decrease in prices compared to the same quarter last year in China.
Europe
In the fourth quarter of 2023, the Tartaric Acid market in Europe witnessed several significant factors that influenced prices. Firstly, there was an increase in demand from the pharmaceutical and healthcare sectors, along with a decline in market inventories, leading to an escalation in prices. Additionally, the heightened prices of Maleic Anhydride, a crucial raw material for Tartaric Acid production, further contributed to the upward trend in prices. Among the European countries, Germany experienced notable changes in Tartaric Acid prices. The country saw an improvement in business sentiment, indicating a potential easing of factors hindering economic growth, such as high inflation. The decline in Germany's manufacturing sector showed signs of easing, raising optimism for a potentially milder recession. Furthermore, the reduction in inflation in Germany positively influenced consumers' purchasing power, playing a role in the upward trend of Tartaric Acid prices. However, prices declined slightly towards the end of the quarter primarily influenced by decreased demand from food, beverage, and pharmaceutical sectors. A notable contributing factor was the unexpected decline in German business morale weighing on many retailers, marked by a notable acceleration in the reduction of both sales and new orders. In conclusion, the Tartaric Acid market in Europe, particularly in Germany, experienced an upward trend in prices during the fourth quarter of 2023. The quarter ended with a price of USD 2110/MT for L+ Tartaric Acid-CFR Hamburg in Germany.
For the Quarter Ending September 2023
North America
The prices of Tartaric acid in the USA market exhibited a diverse pattern during the third quarter. Prices declined 3.15 percent in July as a result of a decrease in new order inquiries and sales from end-user sectors. Consumer prices jumped 3.2% in July over the prior month, according to the government inflation figures. The increase comes after a 3% annual increase in June, the lowest rate in more than two years. The Federal Reserve raised its benchmark rate by 25 basis points 11 times in July in an effort to curb inflation, which kept overall market demand low. Tartaric acid prices, on the other hand, increased by 1.16% in August due to a supply constraint and rising end-user demand. Disruptions in the global supply chain and rising oil costs have also affected the Tartaric acid market, leading to the price increase. In September, new orders fell for the sixth consecutive month, albeit at a slower pace, resulting in a 5.29% drop in Tartaric acid pricing. During this time, inflation remained strong, owing mostly to higher petrol and rental expenses, putting further hardship on households.
Asia Pacific
Tartaric acid prices exhibited a varied trend in the Chinese market throughout the third quarter. Tartaric acid prices fell 3.76% in July as plant activity slowed and downstream sector demand fell. Furthermore, the Chinese yuan strengthens against the US dollar, making Tartaric acid more expensive in international markets, leading to a further decline in Tartaric acid demand in foreign markets. Market suppliers increased their priority to destocking in order to minimize inventory and maintain profit margins. The official manufacturing purchasing managers' index (PMI) increased marginally to 49.7 in August from 49.3 the previous month, according to statistics released by the National Bureau of Statistics (NBS). The minor increase in PMI shows that the pace of new orders and purchases increased slightly in August compared to the previous month, resulting in a 2.81% increase in Tartaric acid prices. In response to economic concerns, China's central bank slashed key interest rates, bolstering domestic consumer demand. In September, industry output and new orders remained strong in a thriving domain. However, external demand has not been as strong, as the export orders index has fallen for the third consecutive month, resulting in a 2.94% drop in Tartaric acid prices.
Europe
Tartaric acid prices exhibited a mixed trend in the Chinese market throughout the third quarter. Tartaric acid prices fell by 3.51% in July due to a poor economic environment in Germany, which resulted in a dramatic drop in the number of new orders and market demand. The European Central Bank's increased interest rates also led to weaker domestic demand. Tartaric acid prices, on the other hand, climbed by 1.94% in August due to increased demand from the pharmaceutical and healthcare end-user markets. Tartaric acid imports from major exporting countries such as China also decreased, resulting in less supply in the market and an increase in pricing. Furthermore, disruptions in the global supply chain caused by events such as trade disputes or natural disasters have affected Tartaric acid availability, resulting in price increases. Tartaric acid prices fell 3.81% in September, owing to a fall in end-user demand and an abundance of supply in the market. This can be linked to the continual escalation of inflation, which is mostly driven by rising food and energy prices, putting a strain on purchasing power.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, Tartaric acid prices in the US market showcased oscillation in the trajectory of the price. The price was valued at the end of Q2 2023, representing an average quarterly decline of 3.13%. Collectively the prices dropped but at the commencement of the first month, the prices increased because of improved dynamics of supply and demand. Since the zero-tolerance policy was abandoned, trade between Asia and the US has increased. Also, increased raw material corn further supported the upward market situation. Later, the US Tartaric acid market faced sluggish market sentiment due to decreased demand from downstream industries. This led to excess inventory, forcing suppliers to lower prices. The ongoing economic instability in the US and rising global inflation have also contributed to the decline in demand. The major players in the market are expected to further reduce prices, which will discourage restocking by distributors and suppliers. Meanwhile, the price of feedstock maleic anhydride also dampens through having a surplus supply and increased production rate. The restocking by distributors and suppliers is not observed as the inventories are surplus and need to be consumed first.
Asia
The market price of Tartaric acid showcased an oscillating trajectory in the second quarter of 2023. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 0.70%. The upward trend was largely driven by the increase in demand from end-use industries, including the food and beverage sectors. Also, increased production rates in order to refill the inventories with fresh stock and to cater to the upcoming demand market situation remained strong. Also, increased raw material corn prices further supported the market situation. China’s exports saw a better-than-expected in April as consistent inquiries from the domestic and international markets remained above average. The market trend for all commodities on the North Side has also been maintained as China has purchased Russian oil imports at prices higher than predicted affecting the manufacturing activity as per the traders. Later as the second month commenced the Tartaric acid prices showcased a downward momentum in the Chinese market owing to the relapsing feedstock Glucose(corn) market trajectory amidst the uncertain downstream inquiries. The inventory level of the feedstock Glucose(corn), as well as Tartaric acid, was at a higher edge due to abundant availability as they increased their production rate. The feedstock suppliers were offering feedstock Glucose(corn) at a cheaper price in the spot market which reduced the cost support for Tartaric acid. Consumption recovery is weaker than expected. The demand for Tartaric acid from the downstream food, chemical, and polymer industries declined amid uncertain economic conditions. The demand from the pharmaceutical sector was weak as the ongoing economic instability and increasing inflation rate halted the trade process. According to the major market players, the buyers were shying away from placing large orders as they suspected a further decline in price.
Europe
In the second quarter of 2023, the demand for Tartaric acid collectively decreased, leading to a decline in market prices. The price was valued and acquired at the end of Q2 2023, with an average quarterly decline of 3.18%. In April, Tartaric acid's price trajectory had a major upward trend. The market's fundamentals revealed that rising domestic demand was the main driver of higher prices for Tartaric acid in April. The market in the Netherlands will likely be driven by new production in exporting nations in response to rising demand and high energy prices. Also, increased raw material corn prices further supported the hiked-up trajectory. Later, Tartaric acid has seen a decrease in price at the beginning of June amid workforce shortage as well as declining demand from downstream industries. The demand for Tartaric acid remained at the lower edge as the Food, Cosmetic, construction, and pharmaceutical industries shows a declining trend. The integrated production units in Germany having surplus inventories were forced to sell Tartaric acid at lower prices. Suppliers were providing Tartaric acid at a lower price, but buyers are still in the wait-and-watch situation for further price drops from mills. Although import offers increased this week, they remain substantially below domestic prices. Furthermore, the weak and consolidated feedstock maleic anhydride market kept the market situation for tartaric acid weak and feeble.
For the Quarter Ending March 2023
North America
Due to unexpectedly shifting market dynamics, Tartaric Acid prices decreased in the North American region during the first quarter of 2023. In the first month of Q1's first half and during the second, prices started to fall. The domestic suppliers were able to meet the total demand because of their huge stocks, even though demand-related offtakes in the end-user sectors remained on the low side throughout the quarter. Due to the easing of supply chains from major exporting countries, prices were lower for most of the quarter. The price of Tartaric Acid for CFR Los Angeles in March was estimated to be around USD 2450/MT by the conclusion of the first quarter of 2023.
APAC
In the first quarter of 2023, the price trend for Tartaric Acid in the Asia Pacific region fluctuated. Prices decreased during the first half of Q1 as a result of weak demand from the food and beverage sectors. The domestic market's low inventory levels have helped to drive up product prices during the second month of the quarter. The prices of the commodities decreased once again in the previous month as a result of the local Chinese market destocking its previous supplies as the second month of the quarter approached. Domestic producers and suppliers were able to satisfy the demand for the entire quarter because of large stocks. The price of Tartaric Acid for FOB Shanghai in March was estimated to be around USD 2040/MT by the conclusion of the first quarter of 2023.
Europe
Due to erratic market conditions, Tartaric Acid prices fell in the first quarter of 2023. Prices dropped during the first half of the quarter as a result of a fall in demand from the beverage and food additive industries. The second month of the quarter saw a drop in prices, nevertheless, as a result of lower raw material costs and merchants' destocking of outdated inventory on the Chinese market. However, prices dropped in the final month of the quarter due to a drop in demand from end-user industries and the closure of numerous facilities that were generating raw materials because of poor turnover. The price of Tartaric Acid for CFR Hamburg in March was estimated to be around USD 2360/MT by the conclusion of the first quarter of 2022.
For the Quarter Ending December 2022
North America
Prices for Tartaric Acid declined in the North American region during the fourth quarter of 2022 as a result of unpredictably changing market dynamics. Prices started to decline in the first month of Q4's first half and continued through the second. Despite the fact that demand-related offtakes in the end-user sectors remained on the low side throughout the quarter, the domestic suppliers were able to meet the total demand thanks to their large inventories. For the majority of the quarter, weather issues, Covid lockdowns in China, and unrest in Ukraine brought about by Russia put supply chains in danger, approximately USD 3240/MT by the end of the 2022 fourth quarter. The price of Tartaric Acid for CFR Los Angeles in December 2022 was estimated to be around USD 3240/MT by the conclusion of the fourth quarter of 2022
APAC
In the fourth quarter of 2022, the price trend for Tartaric Acid in the Asia Pacific region declined. Due to substantial demand from the food and beverage industries, prices fell in the first half of Q4. High inventory levels in the domestic market have contributed to the reduction in the good's price. Due to the Chinese local market's destocking of its past supply as the second month of the quarter drew near, the prices of the commodities dropped. Following a one-week break, Chinese traders faced a range of contradicting signals, making it challenging for the market to catch up to the moderate growth seen in various downstream industries during the first half of Q4. Large inventories allowed domestic producers and suppliers to meet the demand for the whole quarter. The price of Tartaric Acid for FOB Shanghai in December 2022 was estimated to be around USD 2275/MT by the conclusion of the fourth quarter of 2022.
Europe
Due to erratic market conditions, tartaric acid prices fell in the fourth quarter of 2022. Due to a decline in demand from the food additive and beverage industries, prices fell during the first half of the quarter. However, prices fell in the second month of the quarter as a result of falling raw material costs and merchants' destocking of old stocks on the Chinese market. However, prices fell in the last month of the quarter as a result of a decline in demand from end-user industries and the closure of many facilities that were producing raw materials due to low turnover. The price of Tartaric Acid for CFR Hamburg in December 2022 was estimated to be around USD 3045/MT by the conclusion of the fourth quarter of 2022.
For the Quarter Ending September 2022
North America
Due to unpredictable market dynamics, Tartaric Acid prices in the North American region fluctuated in the third quarter of 2022. Prices were raised starting in the first month of Q3's first half and continued through the second month. Price increases were brought on by supply restrictions that were already present in the US during the first quarter. Concerns about the high costs of food additives and raw materials among local dealers and purchasers were exacerbated by rising US inflation, geopolitical upheaval in Russia and Ukraine, and the highly volatile nature of oil prices. Prices dropped in the final month of the quarter because of rising domestic market stocks. As time passed, demand from the confectionaries and downstream food and beverage sectors in the region continued to do poorly. The price of tartaric acid for CFR Los Angeles in September 2022 was estimated to be around USD 3900/MT by the conclusion of the third quarter of 2022.
APAC
The price trend for Tartaric Acid in the Asia Pacific region fluctuated in the third quarter of 2022. Prices rose in the first half of Q3 because of increased demand from the food and beverage industries. Low inventory levels on the domestic market have further supported an increase in the product's price. Due to the Chinese local market's destocking of its previous supplies, the prices of the goods declined as the second month of the quarter approached. However, due to China's golden week in the final month of the quarter, which resulted in a tight supply on the local market in the final week of September, prices increased. The price of tartaric acid for FOB Shanghai in September 2022 was estimated to be around USD 2850/MT by the conclusion of the third quarter of 2022.
Europe
The price for Tartaric Acid fluctuated in the third quarter of 2022 due to unstable market sentiments. In the first half of the quarter, the prices were increased due to an increase in demand from the food additives and beverages sectors. However, the prices decreased in the second month of the quarter due to a decrease in the price of the raw materials as prices in the Chinese market were reduced as per the destocking of old stocks by traders. China is the leading exporter of food additives. However, in the last month of the quarter, the prices increased due to the arrival of Golden week in China, which led to tight supply concerns in the market. The entire month saw robust offtakes from end-user sectors, such as the food and beverage industries, because suppliers had enough inventory to service all domestic demand. The price of tartaric acid for CFR Hamburg in September 2022 was estimated to be around USD 4180 /MT by the conclusion of the third quarter of 2022.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the Tartaric acid market in the North American region exhibited stagnant sentiments due to consistent offtakes in the end-user industries. Supply constraints already in the US in April were exacerbated by the COVID comeback in China's commercial hubs, which significantly restricted the import of Tartaric Acid into the country. The rising inflation in the US, the geopolitical unrest in Russia and Ukraine, and the highly erratic oil prices all contributed to domestic traders' and buyers' worries about the high costs of food additives and raw materials throughout the quarter. Over time, demand from the region's downstream food and beverage industries and confectionaries remained high.
APAC
In the second quarter of 2022, the price trend for Tartaric Acid in the Asia Pacific region showed a downward trajectory. The covid outbreak effectively delayed product delivery in foreign markets because China is the world's largest supplier of food additives. This led to rising freight costs, supply shortages, and port bottlenecks. Supply chains were strained due to China's zero-tolerance laws and limitations, which continued to impede manufacturing and logistics and caused havoc with shipping additives and raw materials. The restrictions caused disruptions in the logistics and transportation networks, which considerably slowed the movement of commodities across the nation and to large international shipping ports. Due to adequate stocks held by suppliers and purchasers in the Chinese and Indian markets, offtakes from the downstream food and beverage sectors remained stable throughout the quarter.
Europe
Despite the geopolitical conflict between Russia and Ukraine, the domestic market trend for Tartaric Acid in the European region continued to strengthen during the second quarter of 2022. Although the crisis increased transportation costs and slowed the flow of goods into Europe, it made it more difficult for exporting countries to conduct business. The entire quarter saw robust offtakes from end-user sectors, such as the food and beverage industries, due to suppliers having enough inventory to service all domestic demand.
For the Quarter Ending March 2022
North America
Prices of Tartaric Acid surged in the North American market during the first quarter of 2022 on the back of firm downstream demand. As the consumption of Tartaric Acid increased in food & beverage, wine, cosmetic, and pharma industries, so does its demand. Furthermore, skyrocketed crude oil prices, enhanced logistic charges, congested ports, and labor shortage amidst Russia-Ukraine war tensions largely impacted the market of Tartaric Acid in Q1. The prices of Tartaric Acid at CFR New York were USD 4295/MT in January, which increased to USD 4425/MT in February and registered a change of almost 3%.
APAC
The Asia-Pacific region witnessed an upsurge in the prices of Tartaric Acid during Q1 of 2022, backed by solid demand from end-user industries. The enhanced popularity of bakeries and convenience food was the prime factor that propelled the demand for Tartaric Acid. Besides, increased wine consumption further added to the already augmented offtake of Tartaric Acid. Furthermore, fuelled energy prices and freight charges pushed up the prices of Tartaric Acid upwards. Conclusively, the evaluated prices of Tartaric Acid in the Chinese market at FOB Qingdao were USD 2820/MT in January, which increased to USD 2950/MT in February, and then to USD 3010/MT in March.
Europ
Tartaric Acid prices soared in the European countries during the 1st quarter of 2022 on account of increased downstream demand. As the European Union is the leading wine producer globally as per USDA, the consumption of Tartaric Acid soared in the region. Furthermore, in the United Kingdom, anti-dumping duty was imposed in 2018 on imports of Tartaric Acid from the People’s Republic of China, which was further extended for the next five years, resulting in the rise in Tartaric Acid values. In addition, propelled crude oil prices and enhanced freight charges further contributed to the price hike of Tartaric Acid by nearly 4% in Europe.
For the Quarter Ending December 2021
North America
The US domestic market of Tartaric Acid demonstrated raised sentiments in the 4th quarter of 2021, backed by the strong consumption from the downstream food and beverages sector. The strong demand from various end-user industries, including pharmaceuticals, construction, etc., kept the prices of Tartaric Acid in the upward momentum. As the manufacturers in the United States mainly rely upon supplies from China and other East Asian economies, continued cost pressures, disruption, and delays in containerized shipping, hindered the prices and production of several goods, including Tartaric Acid, across the North American region.
Asia
During the fourth quarter of 2021, the prices of Tartaric acid continued to hop upwards in the Asian market. In terms of demand, strong offtakes from the downstream industries, including pharmaceuticals, food and beverages, cosmetics, construction, and others, were observed during this quarter across the Asia Pacific region. The increased costs of raw materials, high freight and energy prices, container shortages, and the sudden spread of the Omicron variant are some of the factors that contributed to the price rise in the domestic market of both India and China. The market competitiveness amongst the manufacturers soared drastically in anticipation to capture a larger market share and gain better netbacks amidst the inventory destock in December.
Europe
In Q4 2021, the surged prices of raw materials, soaring freight costs, port congestion, and prolonged supply disruptions led the prices of Tartaric Acid in the upward trajectory across the European region. An increase in the container freight charges added to the production costs of several products, including Tartaric Acid in the country. The labor shortages continued on and off of coronavirus restrictions across port regions, and the emergence of the Omicron variant have exacerbated the market trend of Tartaric Acid in the European region.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the Tartaric Acid market in North America witnessed an upward rally supported by improvement in economic activities. Moreover, with the vaccination rate reaching its peak in Q3, business activity steadily recuperated, thus boosting the demand for Tartaric Acid from the end user industries which include food and beverage, pharmaceutical, cosmetics, construction etc. Additionally, spike in the raw material values also influenced the price trend of Tartaric Acid across the region.
Asia
In overall Asian Market, a continuous demand for Tartaric Acid from the downstream food industry provided a prominent increment in its market values during the third quarter of 2021. In India and China, the Tartaric acid market sentiments remained high throughout the quarter and its prices rose significantly in this timeframe. However, key players were optimising their production rates on cautiousness over mounting inventories at times of high volatility. Additionally, several factors such as energy crisis in China as well as congestion on its several ports that resulted into the supply chain disruption also influenced the price trend of Tartaric Acid in the region.
Europe
In Europe, high raw material cost and strong demand from the downstream food and beverage sector continued to drive the market dynamics throughout the third quarter of 2021. As per the market players, fluctuations in global trade and foreign currency value, and ultimately affected the demand, commodity prices and input costs. In addition, higher production values and logistical issues further sent ripples to the values of Tartaric Acid in the meantime.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies were further constrained as the operations in several facilities remained shunned amidst the limited availability of feedstock Maleic Acid. Demand was surged for the manufacturing of wine and other derivatives whereas offtakes remained consistent from the pharmaceutical sector, as a repercussion of tightness in the overall North American market. Prices of Tartaric Acid remained in up stride during the second quarter of 2021.
Asia Pacific
Feeble offtakes of upstream Maleic Anhydride from the downstream unsaturated polyether resins (UPR) industries, kept the feedstock inventories ample to meet the demand of Tartaric Acid in the Asia Pacific market. Supplies remained sufficient to cater the end use demand with significant level of the inventories of Malic Acid, however due to the rising inflation in the Chinese prices of Tartaric Acid, prices observed a marginal uptrend with Ex-Work Shanghai prices settling at USD 2280 per tonne and USD 2000 per tonne for L+ and DL grade in April. Whereas the enquiries from the Indian market were stable as the offtakes from the food additives and pharmaceutical sector remained consistent.
Europe
During the second quarter of 2021, supply in the European market of Tartaric Acid remained extremely short during the first half of the quarter due to limited availability of the key feedstock Malic Acid. It is anticipated that the supply tightness is likely to continue till next quarter as a major upstream producer declared turnaround in June. Demand bolstered from downstream food additives and pharmaceutical sector. As a ripple effect prices remains buoyed throughout the quarter in European market.
For the Quarter Ending March 2021
North America
The Tartaric Acid market in the North American region was severely impacted during the first quarter of 2021 due to the supply shortages in the key feedstock plants which disrupted the downstream supply chains due to extreme weather conditions in the Texas and nearby Gulf region. The winter storm further forced the regional Tartaric Acid plants to shut down or reduced their production for a couple of weeks. Demand surge from the pharma sector on back of supply shortages raised the regional offers by a significant percentage.
Asia-Pacific (APAC)
During the first quarter of 2021, Tartaric Acid supplies were balanced due to low inventory levels in the first half of the quarter and turnaround at several regional upstream plants with the arrival of Chinese lunar New Year holidays; however, shortage eased by the end of the Q1 as plants restarted with efficient output. Demand surged in the first quarter owing to well supported demand from the downstream pharmaceutical sector. The shortage in supply drove the FOB Shanghai prices for April deliveries to USD 2030 per tonne for DL Tartaric Acid.
Europe
Supplies of the Tartaric Acid remained tight since the previous quarter with persistent supply crunch noted during the first quarter of 2021. Reduced imports of the key feedstock from overseas and production constraints amid the severe weather conditions in US disrupted the European Tartaric Acid supplies. Demand strengthened from the downstream pharmaceutical sector.
For the Quarter Ending December 2020
North America
Demand for Tartaric Acid was highest in the final quarter of 2020 due to the optimism that prevailed from the roll out of Coronavirus vaccine. There was an increase in demand in the month of November as compared to October amidst the revival in economy from the upward crawl in crude oil prices. The largest importer of Tartaric Acid in North America were New York and Los Angeles in which most of companies were based on pharma and chemicals indicating a high demand-flow from these sectors.
Asia
The demand for Tartaric Acid saw a slight increment in Q4 as compared to Q3 of 2020 as the economic activities to revive and curb the losses during the peak virus period. China emerged as the largest exporter of Tartaric Acid whereas India which is continuously expanding its roots to expand the foothold in the pharmaceutical industry, turned out as the largest importer. Consequently, prices of Tartaric Acid remained in the range of USD 4000-4500 per MT FOB China in the final quarter. Furthermore, In November, demand for Tartaric Acid FROM India took another upward toll weighed by its increased demand from food and beverage industry during the festive season.
Europe
During the fourth quarter of 2020, Mexico emerged as the largest importer for Tartaric Acid in Europe owing to the consistent demand of Tartaric Acid from pharma, chemical industries as they are increasing its consumption due to its properties like less susceptible to microorganism during fermentation. The demand was the highest in October but as the fears of new Coronavirus strain emerged, Europe imposed lockdown by the start of November in several countries like France, Germany and Belgium thereby reporting a slump in the demand of Tartaric Acid. Thus, market sentiments for Tartaric Acid wandered yet again due to new mutant coronavirus which laid a downward pressure upon its prices as well.
