Considering Lower Feedstock Costs, Tartaric Acid Prices are Likely to Decline
- 04-Apr-2023 6:28 PM
- Journalist: Timothy Greene
USA: It is anticipated that Tartaric Acid will become less expensive in the US market during the first week of April 2023 due to the lower cost of raw materials, particularly Maleic Anhydride.
Benzene-based Maleic Anhydride sales in the US domestic market kept falling, further decreasing Tartaric Acid's price. The domestic Maleic Anhydride market is experiencing significant losses in the Benzene oxidation process, factories are closing for maintenance, and there is a decrease in the supply of Tartaric Acid. Earlier in February 2023, the market scenario was the same for the upstream, primarily Maleic Anhydride. The domestic benzene, Maleic Anhydride, and the domestic n-butane oxidation industries both continued to decline. There was no clear advantage in the demand for downstream resin, and the procurement was done on the basis of end-user requirements. The main exporting cities for Tartaric Acid, Shanxi, and Hebei, did not experience any fresh price outflow. Tartaric Acid prices decreased in its domestic market due to the US inflation, which also continued to dampen demand forecasts.
One of the major drivers propelling the Tartaric Acid industry is the rising demand for Food And Beverages because of the growing world population. In spite of this, there has been a reduction in demand for US Foods and Beverages since national businesses have a sufficient supply of Tartaric Acid in hand, which reduces the need for imports from China.
ChemAnalyst anticipates a drop in the price of Tartaric Acid due to the facilities' current closures due to low terminal demand and low overall turnover, primarily due to inflation in the US market. Future market instability is anticipated, which will affect the price of Maleic Anhydride in the US. However, at the end of March, the price of n-butane upstream for benzene in the market's upstream region stopped falling and began to rise, supporting the market's price; additionally, extremely cautious, primarily on-demand procurement and the future market price for Tartaric Acid are still unpredictable.