Backed by High Feed Costs, Fumaric Acid Values Likely to Ascend
- 13-Jun-2022 2:43 PM
- Journalist: Gabreilla Figueroa
According to the ChemAnalyst, the prices of Fumaric Acid are anticipated to escalate upwards in China on the back of the soaring Maleic Anhydride (feed) prices. Lockdowns in China, on and off, had a far greater influence on global supply chains than the war in Ukraine, and their effects will be felt long after they are released. Because China is the world's largest exporter of Fumaric Acid, the epidemic of illnesses hampered the product's offshore delivery and resulted in skyrocketing freight charges along with supply and port bottlenecks.
China's "Nonsensical" Zero Covid policy, which has slowed the manufacturing and shipment of everything from commodity products to everyday things, has taken a toll on the world's supply chains this year. At the same time, in the United States, manpower shortages have made it impossible for businesses to convey their products, leading the Biden administration to intervene.
In March and April, China renewed COVID-19 lockdowns in major cities, affecting production and consumption and raising dangers for aspects of the global economy that are heavily reliant on the country. Chinese officials have re-imposed harsh restrictions just weeks after considerable relaxation in key cities, elevating fears that the government may use strict measures to manage the spread once more. After the lockdown is lifted, traffic backups are likely to occur in front of US and European ports.
Fumaric Acid finds its major applications in a number of foods, including juices, nutraceutical drinks, gelatin desserts, gelling aids, pie fillings, wine, and others, therefore demand from the downstream food and beverage sectors is consistent. Nightlife in China's capital city is slowly regaining its verve after a month-long hiatus in dine-in services in Beijing's cafes. 'The revival of the restaurant industry in Beijing and Shanghai highlights the industry's enormous energy and immense vitality in boosting the world's largest consumer market-that has a great attraction for both Chinese and global investments, especially in the post-pandemic era,' according to industry experts.
According to data from China's National Bureau of Statistics, the food and beverage industry's sales in 2020 were more than 55 billion USD, down 15.4 percent from 2019 due to the epidemic's impact.
China's "eating economy," according to our sources, is one of the world's fastest booming. Food and beverage consumption is anticipated to become one of the most important drivers fueling economic growth in China and around the world in the future. Considering all of the above market scenario, Fumaric Acid values are expected to incline along with the increased demand from the end-user industries.