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Fumaric Acid Prices Set to Skyrocket Across the Globe in October 2023
Fumaric Acid Prices Set to Skyrocket Across the Globe in October 2023

Fumaric Acid Prices Set to Skyrocket Across the Globe in October 2023

  • 03-Oct-2023 5:35 PM
  • Journalist: S. Jayavikraman

In a noteworthy development poised to reverberate across diverse industries, it is anticipated that the price of Fumaric Acid will experience a substantial escalation in October 2023. This pronounced cost surge is expected to exert influence over a broad spectrum of sectors, encompassing Unsaturated Polyester Resins (UPR), food and beverage, L-aspartic Acid, rosin paper sizes, animal feed, alkyd resins, and pharmaceuticals/ferrous fumarate. The underlying factors driving this impending price surge are intricate, stemming from supply chain disruptions and heightened demand, coupled with efforts to replenish inventories.

A key determinant behind the expected rise in the cost of Fumaric Acid is the persistent disruption within global supply chains. Fumaric Acid, an organic acid naturally present in fruits such as grapes, bananas, and tamarinds, is a pivotal component in a diverse range of products. Its significance is particularly pronounced in food and beverage processing, pharmaceuticals, and select renewable energy technologies. Concurrently, China's trade activities displayed further declines in September, characterized by diminishing foreign demand and subdued domestic consumer expenditure. These developments exerted pressure on businesses within the world's second-largest economy, albeit at a pace that was somewhat slower than initially projected.

The world's leading exporter, China, is on the brink of a temporary production slowdown due to upcoming events. The simultaneous occurrence of the Hangzhou Asian Games, the imminent eight-day Mid-Autumn Festival, and the National Day holiday period are expected to stimulate China's consumer market. At the same time, the tourism sector is predicted to reach its peak. During this holiday season, price escalation for Fumaric Acid is likely due to suspending production activities. After the conclusion of these events, production will be scaled up to meet the heightened demand and fulfill substantial orders for replenishing inventory. As a result, this surge in production costs and manufacturing rates will naturally lead to an increase in the prices of Fumaric Acid.

Moreover, the mounting expenses associated with raw materials for Fumaric Acid, notably maleic anhydride, are set to exert additional pressure on the upward trajectory. These rising costs are poised to augment production expenditures significantly. Increasing maleic anhydride prices will increase overall production costs for Fumaric Acid, further bolstering the upward trend. Furthermore, logistical challenges in transporting raw materials and finished goods have placed additional strain on the supply chain. The introduction of delays in shipping and the escalation of transportation expenses have compounded the challenges faced by manufacturers and distributors in the Fumaric Acid industry.

An increased demand for Fumaric Acid is being observed in the renewable energy sector, specifically in producing select types of photovoltaic cells. This heightened demand is a consequence of the global shift towards renewable energy sources, which has led to a surge in the need for these specialized cells. Consequently, the supply chains for Fumaric Acid are facing additional pressures.

To summarize, the impending price surge in Fumaric Acid expected in October 2023 is a multifaceted issue arising from disruptions in the supply chain and rising demand across various industries.

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