Prices For Tartaric Acid are Probably Going to Drop in the Upcoming Month
- 16-Nov-2022 6:48 PM
- Journalist: Timothy Greene
USA: The third week of November is expected to see a drop in Tartaric Acid prices in the US domestic market, based on projections from ChemAnalyst data. Tartaric Acid is frequently used as an acidulant in foods and beverages with grape and lime flavors, gelatin desserts, jams, and jellies.
The price trend of Tartaric Acid in the US is mainly supported by falling prices of the primary ingredient, Maleic Anhydride, among other factors. Additionally, at this time, the maleic anhydride market produced by the benzene process was shut down this week in China's domestic market. The benzene oxidation process in the domestic maleic anhydride market is suffering from severe losses at present, the factory is shut down for maintenance, and the market circulation supply is low. This week, the supply of main maleic anhydride plants was sufficient, but the purchase of resin was weak, and the transaction was cautious. In terms of upstream, pure benzene prices also fluctuated this week. Because of this, the Tartaric Acid prices are weak and expected to decrease in the future, affecting the product prices in the USA as it imports mainly from China.
The growing global population catalyzes the demand for food and beverages, one of the key factors that positively influence the Tartaric Acid market. Furthermore, leading market players focus on product innovations and strategic collaborations to expand their product portfolio and market reach. Despite all of this, the US food and beverage industries are seeing a decline in demand as domestic companies have enough Tartaric Acid on hand, necessitating fewer imports from China. Furthermore, for sea freight, freight rates are meager now, especially since most destination ports have bottomed out.
According to ChemAnalyst, the price of Tartaric Acid is predicted to drop due to a decline in demand from end-use sectors. The product's plenty of inventories, weak demand, and falling raw material costs will also contribute to the price drop.