Fluctuating Prices of Citric Acid in January 2024 Across Globe
Fluctuating Prices of Citric Acid in January 2024 Across Globe

Fluctuating Prices of Citric Acid in January 2024 Across Globe

  • 07-Feb-2024 4:17 PM
  • Journalist: Jung Hoon

The prices of Citric Acid witnessed fluctuations throughout January 2024, primarily characterized by weakness and consolidation. These trends were driven by a combination of factors including a low demand outlook, ample inventories among suppliers, and shifts in raw material prices.

In the APAC region, the weakened demand outlook and surplus inventories exerted downward pressure on Citric Acid prices. Particularly notable was the decision by the China National Grain Reserves Corporation (CSCF) to release 55 million tons of reserve grain into the exporting market. This move, timed just before the holiday season, aimed to optimize market conditions but contributed to subdued demand for Citric Acid as downstream processing enterprises adjusted their purchasing strategies amidst a more relaxed corn market supply.

Furthermore, the decreased prices of Citric Acid were influenced by the declining costs of raw material corn in domestic provinces. The correlation between corn prices and Citric Acid prices highlights the interconnectedness of agricultural markets and their impact on downstream industries.

On the international front, import prices of Citric Acid from both the USA and Germany remained on the lower end. Germany, a significant importer of Citric Acid, strategically adjusted its pricing trajectory to maintain competitiveness in the global market. This strategic decision had a ripple effect, leading to depreciated prices worldwide.

Conversely, export prices of Citric Acid from both the USA and Germany increased. This trend, particularly evident in the European region, was driven by currency fluctuations, with the Euro depreciating against the USD by 2.12% in January 2024. Additionally, increased prices of raw material corn in Europe provided positive cost support, further bolstering export prices of Citric Acid.

In North America, the United States encountered challenges in its corn export business to Brazil, as the South American country expanded its output. Despite ongoing disputes between the United States and Mexico over genetically modified (GM) corn imports, Mexico secured a record volume of U.S. corn for shipment, impacting both the corn starch market and Citric Acid prices in the region.

Globally, disruptions in the Red Sea and the Suez Canal due to geopolitical disturbances led to significant disruptions in various industries, including the Citric Acid market. Increased freight prices and longer transit times around Africa resulted in delays in product deliveries, including Citric Acid, highlighting the interconnectedness of global supply chains and the impact of geopolitical events on commodity markets.

Overall, the fluctuating prices of Citric Acid in January 2024 were influenced by a myriad of factors ranging from supply and demand dynamics to currency fluctuations and geopolitical disturbances. As market participants navigate these challenges, adaptation and strategic decision-making will be critical in managing price volatility and maintaining competitiveness in the global Citric Acid market.

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