Are Fumaric Acid and Benzene tracing the two rails of the same track
- 17-May-2022 5:27 PM
- Journalist: S. Jayavikraman
Mumbai, India: The food industry is the only sector that can never be in loss in a country like India, and this effect replicates in its food additive industry. The trend of most food preservatives remains either stable or rising in the Indian domestic market. The market sentiments of Fumaric Acid, which finds its usage primarily as a flavouring agent and preservative, have been soaring over the past few weeks.
What all are the major factors shaping the current trend of Fumaric Acid has recently been a bone of contention. ChemAnalyst researchers started primary research on the fumaric Acid pricing trend to clear the air, and after analysing the market intricately, they gathered some exciting points.
The most significant reason behind the price surge of Fumaric Acid is the escalating price value of Benzene in the regional market. Benzene is the upstream for Fumaric Acid as the feedstock, Maleic Acid is usually synthesized through catalytic oxidation of Benzene. The prices of Benzene have been rising due to the augmenting crude oil prices worldwide. Besides, the value of Hydrochloric Acid, another feedstock of Fumaric Acid, has also been growing, consequently exacerbating the Fumaric Acid prices.
Furthermore, As China is one of the significant Fumaric Acid exporters to India, the ongoing unavailability of trucks for carrying goods to the Chinese ports has affected the operations at the ports, which further prevailed its impact on the freight charges, hence propelling the prices of those commodities in India.
In addition, the continuing energy crisis in India amidst coal shortages has been enhancing the price value of several products, including Fumaric Acid.
As per ChemAnalyst anticipations, “Benzene prices would remain on the higher side for a few more weeks, which eventually will be causing price hike of Fumaric Acid in the upcoming days. Besides, further increment in freight charges and crude oil prices amidst Russia-Ukraine war tension would be adding to the already augmented price value of Fumaric Acid.”