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Fumaric Acid Prices Surge in February, Sending Shockwaves Through Industries
Fumaric Acid Prices Surge in February, Sending Shockwaves Through Industries

Fumaric Acid Prices Surge in February, Sending Shockwaves Through Industries

  • 06-Mar-2024 3:22 PM
  • Journalist: Francis Stokes

In February, the Fumaric acid industry witnessed a notable surge in prices across both developed and emerging markets, including APAC, North America, and Europe. Fumaric acid, a pivotal acidulant and pH adjuster extensively utilized in food and beverage products, as well as in various sectors such as cosmetics, personal care, animal feed, and pharmaceuticals, experienced substantial price fluctuations reflective of the inherent volatility within the global market landscape.

In China, one of the major producing and exporting regions of Fumaric acid, prices followed an optimistic trajectory throughout February. This upward trend was driven by several contributing factors, notably a significant surge in bulk orders and substantial procurements from both regional and international markets. As the Lunar New Year celebrations and the Spring Festival drew to a close, production plants that underwent maintenance promptly resumed operations at an extensive scale, bolstering market confidence. Moreover, a decrease in Fumaric acid inventories within the Chinese market further compounded upward pressure on prices, compelling market participants to replenish their stocks.

The demand for food products containing Fumaric acid, which serves as both an acidulant and preservative, is anticipated to witness an uptick during the spring and early summer months, coinciding with increased outdoor activities and heightened consumption of packaged and convenience foods. Furthermore, the depreciation of the Chinese yuan currency by 2.19% against the USD in February contributed to escalated costs, supporting the positive price trend. As the Chinese market reopened post-holiday, demand rebounded, further propelling prices upward.

Similarly, in the United States, Fumaric acid prices experienced a notable surge during February. This escalation can be attributed to various external factors, prominently disruptions in shipping routes, particularly in the Red Sea region. Cargo vessels traversing the Red Sea encountered attacks from Houthi rebels, leading to a surge of over 150% in shipping costs and consequent delays in delivery schedules. As a major importer heavily reliant on China as a prominent exporter of Fumaric acid, the United States faced significant supply chain disruptions and escalated freight charges, exacerbating the rise in Fumaric acid prices.

As per the ChemAnalyst experts there have been certain records of plant shutdown of maleic anhydride a raw material of fumaric acid in the recent weeks mentioned below:

COMPANY NAME

LOCATION

DURATION

REASON

Tasco Chemical

Taiwan

29 days (1-29 Feb)

Scheduled Maintenance Shutdown. 

Shandong Near Chemicals Co., Ltd

Dongying

14 days (6-19 Feb)

Maintenance Shutdown/ Chinese New Year.

MOL Group - Hungarian Oil and Gas

Hungary

29days (1-29 Feb)

Scheduled Maintenance Shutdown. 

Wanhua Chemical Group Co., Ltd

Wanhua

11days (8-18 Feb)

Maintenance Shutdown/ Chinese New Year.

 

 

 

 

 

 

 

 

The volatility observed in Fumaric acid prices underscores the intricate interplay between various geopolitical, economic, and market-specific factors influencing the global chemical industry. Market participants are urged to remain vigilant and adapt swiftly to dynamic market conditions to mitigate potential risks and capitalize on emerging opportunities within the Fumaric acid market.

As per chem analyst, the recorded increase in Fumaric acid prices during February reflects the complex dynamics shaping the global chemical industry, driven by a confluence of factors including production dynamics, market demand, currency fluctuations, and geopolitical tensions. As the industry navigates through these challenges, proactive strategies and agile responses are imperative for stakeholders to effectively manage risks and seize growth prospects within the Fumaric acid market landscape.

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