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Lactic Acid Prices Set to Surge Across USA and Europe Amidst High Demand
Lactic Acid Prices Set to Surge Across USA and Europe Amidst High Demand

Lactic Acid Prices Set to Surge Across USA and Europe Amidst High Demand

  • 16-Feb-2024 2:35 PM
  • Journalist: Patrick Knight

The prices of Lactic Acid are poised to surge in February across both the USA and European markets. This increase is fuelled by heightened demand from end-user sectors, a slowdown in manufacturing activity, and compounded by limited inventories among market participants. Lactic Acid finds utility across diverse industries such as food, pharmaceuticals, and bioplastics. With recent spikes in demand from these sectors, expect an upward push on Lactic Acid prices. Furthermore, given the low inventory levels and robust support from downstream demand, the price of domestic corn starch, a crucial raw material, is expected to maintain its strength. This situation may contribute to an increase in the manufacturing cost of Lactic Acid, consequently exerting upward pressure on prices.

During the Lunar New Year in China, factories close and production decreases, which could create supply shortages and raise prices for Lactic Acid. Furthermore, disruptions in shipping and logistics, common during this time due to factory closures, may cause delays and higher transportation expenses. These increased costs are expected to be reflected in elevated prices for consumers, thereby reinforcing the upward trend of Lactic Acid.

Lactic Acid, an organic acid extensively utilized in the food industry for its acidifying and preservative properties, experiences escalated demand during Lunar New Year celebrations. This surge in demand often exerts pressure on the supply chain, which may result in price hikes for Lactic Acid. Given China's prominent role as a major exporter of Lactic Acid to various global markets, including the USA and Europe, similar price trends are likely to manifest in these regions as well.

The most recent report indicates a remarkable surge in US consumer confidence, reaching its apex in a span of two years. This surge is largely attributed to the alleviation of inflationary pressures and the anticipation of interest rate cuts by the Federal Reserve. With consumer confidence on the rise, there's a strong likelihood of increased spending, which could drive up the demand for Lactic Acid, exerting upward pressure on prices. Similarly, sentiments regarding economic development in the eurozone have also improved in February. Recent data indicates a notable uptick in consumer confidence in the Netherlands, driven by a more optimistic outlook on the economic climate and a heightened willingness among consumers to make purchases. This positive sentiment in the European market also contributes to the upward trajectory of Lactic Acid prices, reflecting increased demand amidst a more favorable economic environment.

ChemAnalyst's analysis suggests that the upward trajectory in Lactic Acid prices is anticipated to continue over the forthcoming months, fuelled by consistent demand from key sectors such as food, beverage, and pharmaceuticals. Additionally, the expected relaxation of trade restrictions is poised to improve the overall market sentiment for Lactic Acid, thereby bolstering a positive outlook for the market.

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