Fumaric Acid Prices in the US Shows Positive Demand Dynamics and a Decline in Import Prices

USA:  The last week of January 2023 is expected to see a decline in the price of Fumaric Acid in the US domestic market. Prices for Fumaric Acid are anticipated to decline despite rising demand for the manufacture of wheat tortillas that uses Fumaric Acid, a food preservative and leavening ingredient.

The key element driving the price trend of Fumaric Acid in the US is the drop in the price of the upstream component, maleic anhydride, and other elements, most likely due to low consumer demand. As the factory was shut down for maintenance, there were significant shortages in the benzene oxidation process, and there was no product movement in the domestic maleic anhydride market in the second week of January 2023; the prices for feedstock maleic anhydride were slightly increased. The terminal demand was also very low due to the series of downstream shutdowns of several resin factories. There are shipping limitations, and maleic anhydride was in short supply. Even so, by the second week of January 2023, the market had adjusted to the production, and enough product was being manufactured in the local Chinese market, further supporting the price of Fumaric Acid in the US domestic market to decrease.

Due to China's new year's eve, production in the local Chinese market soared after the second week of January 2023. The import was also high since the merchants had large stockpiles, and because the US imports predominantly from China, prices of Fumaric Acid in the local market declined due to the reduced import costs.

ChemAnalyst predicts that the price of the product will decrease in the upcoming months due to its plentiful supply, sufficient demand, and declining raw material costs. The price of Fumaric Acid would continue to fluctuate due to a sizable volume of inventory the retailers keep in the domestic market.