Global Fumaric Acid Prices Likely to Surge in November 2023 Amidst Rising Demand

Anticipated for the month of November 2023 is an upward trajectory in the pricing of Fumaric Acid in the global market. This projected price escalation of Fumaric Acid can be attributed to several converging factors, such as diminishing market inventories, the upward surge in crude oil expenses, the escalation of feedstock prices, and an augmentation in end-user demand. Fumaric Acid, a compound extensively employed across diverse industries encompassing food, cosmetics, pharmaceuticals, and chemicals, has recently experienced a pronounced upswing in its global demand within these sectors, consequently driving a corresponding uptick in its market price.

According to the most recent data released by the National Bureau of Statistics (NBS) in China, the official Manufacturing Purchasing Managers' Index (PMI) witnessed an unanticipated decline in October 2023, dropping from 50.2 in September to 49.5. This subpar performance indicates a continuation of the sluggish economic trajectory observed after the third quarter, extending into the early part of the fourth quarter of 2023.

Notwithstanding the prevailing adverse economic climate, China has experienced a notable upswing in consumer expenditure during the national holidays. There has been a surge in customer inquiries, leading to an increase in the cost of Fumaric Acid. The Chinese food and beverage sector has exhibited heightened consumption, largely attributed to the increased domestic travel activity during the Golden Week vacation period. Consequently, this surge in demand for Fumaric Acid during October has resulted in an upward price adjustment.

In the United States, economic activity displayed a noteworthy surge in October, with expectations of this momentum persisting throughout November. This is substantiated by a notable uptick in new orders and sales, coupled with indications of a mitigated impact from inflationary pressures, thereby exerting a favorable influence on the Fumaric Acid market. This upswing in business output represents the most substantial increase since July, underscoring the resilience of the U.S. economy in the face of rising interest rates, which the Federal Reserve has instituted to counter inflation. This, in turn, has contributed to an augmented demand for Fumaric Acid in the U.S. market, driving up its prices.

Additionally, the forthcoming holidays in the United States, including Halloween and Thanksgiving, have generated heightened demand for Fumaric Acid, particularly within the food industry, thereby exerting further upward pressure on prices.

Moreover, an escalation in crude oil prices has transpired due to the decision made by oil-producing nations within the OPEC+ consortium, including Saudi Arabia, to prolong their self-imposed reductions in oil production until the conclusion of the current calendar year. This trend has persisted throughout October, primarily as a consequence of the ongoing conflict between Israel and Hamas, which has led to a noticeable upswing in global oil prices. Consequently, this development has precipitated a substantial increase in operational expenses and production costs, resulting in an upward trajectory in the pricing of Fumaric Acid.

According to the analysis by ChemAnalyst, the continued elevation in the prices of Fumaric Acid is anticipated as a consequence of sustained end-user demand and constrained market inventory.