With Fluctuating Downstream and Upstream Markets, Tartaric Acid Prices are Likely to Decline Further
- 28-Dec-2022 5:05 PM
- Journalist: Nicholas Seifield
USA: A drop in the price of Tartaric Acid is anticipated in the domestic US market during the last week of December due to a decline in the cost of raw materials, primarily Maleic Anhydride. Gelatin desserts, jams, jellies, and Food & Beverages with grape and lime flavors typically include tartaric acid as an acidulant.
Falling Maleic Anhydride costs and a decline in demand from downstream sectors are primarily responsible for the downward price trend of Tartaric Acid in the US. This week, the majority of domestic benzol maleic anhydride markets were shut down. Since the downstream resins industries were shut down this week and the primary n-butane oxidation units were fully stocked, the procurement was circumspect, and the transaction was small. The prices of downstream products in Shanxi, Hebei, and South China did not change. This week saw a small decline in the trend of pure benzene upstream. In North China, the ex-factory price of hydrogenated benzene decreased. Due to the above-mentioned reasons, and primarily because the US imports most of its goods from China, prices are now low and are predicted to fall in the future.
One of the major reasons driving the market for Tartaric Acid is the rising demand for food and drinks due to the expanding global population. Despite all of this, there is a reduction in demand for US Food & Beverage products since domestic producers have enough Tartaric Acid on hand, reducing the need for imports from China.
According to ChemAnalyst, the price of Tartaric Acid is predicted to drop as the factory is currently closed for maintenance. The market product circulation is low, and the benzene oxidation process in the domestic Maleic Anhydride market is suffering from significant losses; Some downstream resin plants are currently in the shutdown phase due to low terminal demand and little overall turnover, primarily due to decreased offtakes. Future forecasts indicate that the maleic anhydride market will be fragile, affecting the Tartaric Acid market.