Fumaric Acid Prices Witnessed an Exorbitant Decline Due to Weak Feedstock Costs
- 21-Nov-2022 3:36 PM
- Journalist: Rene Swann
USA: According to ChemAnalyst data, the price of Fumaric Acid continued to decrease in the US domestic market during the third week of November 2022. Fumaric Acid is widely employed as an acidity regulator in baking powders and drinks with strict purity criteria. Additionally, wheat tortillas are made with Fumaric Acid, which is also used as a food preservative and a leavening agent.
Falling prices of maleic anhydride, the key component, as well as other reasons likely the low demand from consumers, are primarily supporting the price trend of Fumaric Acid in the US. Additionally, this week in China, the market for maleic anhydride made by the benzene process was shut down. The factory is currently closed for maintenance, the market circulation supply is low, and the benzene oxidation process in the domestic maleic anhydride market suffers significant losses. This week, there were enough primary maleic anhydride plants available, the downstream resin buy was modest, and the transaction was cautious. This week, the pure benzene upstream market has also fluctuated.
One of the major reasons driving the market for Fumaric Acid is the rising demand for food and drinks due to the expanding global population. Leading market competitors also concentrate on product breakthroughs and tactical alliances to increase their product range and market reach. Despite all of this, there is a drop in demand in the US food and beverage industries because domestic firms have enough Fumaric Acid on hand and require fewer imports from China. Furthermore, since most destination ports have reached their bottom, freight rates for sea freight are currently quite low.
The price of Fumaric Acid is anticipated to decrease due to a dip in demand from end-use sectors, according to ChemAnalyst. The product's ample supply, low demand, and declining raw material costs will affect the price decline.