Chinese Market to Witness Stagnancy in Malic Acid Value
- 02-Jun-2022 3:00 PM
- Journalist: Xiang Hong
Tianjin, China: In contrast to the last few week's trends, Malic Acid prices are rising in China's domestic market. Malic Acid is a food additive widely used in the food industry owing to its rejuvenation and detoxification properties. Besides, Malic Acid also finds its usage in the cosmetics and pharmaceutical industries.
For the last few weeks, the price value of Malic Acid has been depleting in the Chinese regional market due to the decremented price of feedstock. The prices of Maleic Anhydride, the feedstock of Malic Acid, had been decreasing because of a sufficient level of inventories and a consistent rate of supply in the country. As the raw material value declined, so is the manufacturing cost of Malic Acid, and hence the Malic Acid price fell.
Contrary to that, the prices of Malic Acid have started to rise marginally after 26th May and are approaching a stage of stability after 30th May. Again, Maleic Anhydride, the feedstock, is the primary force behind driving the Malic Acid market upwards. Maleic Anhydride has started growing peripherally in the last few days of the 4th week of May, which took the Malic Acid market along with it. Furthermore, the downstream demand for Malic Acid from food and beverage, cosmetics, and pharmaceutical industries has also been supporting the improving price value of Malic Acid. Fluctuations in crude oil prices and freight charges amidst Russia-Ukraine war tensions have also impacted the prices of several commodities in China.
As per ChemAnalyst anticipations, " The Malic Acid market is likely to attain a phase of stagnancy in the forthcoming weeks on account of stable Maleic Anhydride price value. However, fluctuations in offtakes from downstream industries might impact the market and cause some minor changes in the pricing trend. Meanwhile, see-sawing crude oil prices and logistic charges might also affect the Chinese Malic Acid market."