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US Fumaric Acid Market Declines as Feedstock Prices Fall in June 2023
US Fumaric Acid Market Declines as Feedstock Prices Fall in June 2023

US Fumaric Acid Market Declines as Feedstock Prices Fall in June 2023

  • 06-Jul-2023 3:34 PM
  • Journalist: Rene Swann

The Fumaric Acid prices fell in June 2023 in the US market. The price decline includes increased supply, decreased demand, and a stronger US dollar. One of the main reasons is the recent increase in global production of Fumaric Acid. China, the world's largest Fumaric Acid producer, has ramped up production in 2023, increasing global Fumaric Acid supply.

Another reason for the fall in Fumaric Acid prices is sluggish demand. Demand for Fumaric Acid in the United States has declined in recent months due to several factors, such as a slowing economy and a growing preference for natural and organic products over synthetic preservatives. Fumaric Acid is mainly used in the pharmaceutical, cosmetic, and food industries. The economic downturn has caused consumers to spend less on personal care products. Furthermore, traders are destocking Fumaric Acid in anticipation of lower prices in the coming months. This is also putting downward pressure on product prices.

The US dollar rose against other major currencies like the Euro and the Yen. As a result, the price of Fumaric Acid has increased for buyers in these countries, leading to a decline in demand. Furthermore, the US Manufacturing Purchasing Managers Index (PMI) for June 2023 experienced a decline, dropping to 46.3 from May's 48.4. Concurrently, the US Consumer Price Index (CPI) for the same month, which had been on an upward trend, saw a modest increase of 0.1%, down from the 0.3% rise seen in May. Core CPI, which excludes food and energy prices, rose 0.3% in June, following a 0.6% rise in May. A drop in PMI suggests a decline in demand for manufactured goods. A falling PMI is also a sign of slowing economic growth. This reduces consumer spending and puts downward pressure on prices.

In addition, Fumaric Acid production costs have also fallen in recent months due to lower raw material prices and improved production processes. The price of Maleic Anhydride, the raw material used to make Fumaric Acid, has fallen in recent months.

The surplus export of the product is also contributing to the price decline. The United States is one of the largest importers of Fumaric Acid from the APAC countries. Global demand for the product is not growing as fast as supply. The result was an export surplus, leading to a price fall.

According to ChemAnalyst, Fumaric Acid market sentiments are likely to increase further in the upcoming months. Current market conditions are expected to continue to weigh on Fumaric Acid prices as the demand for Fumaric Acid is expected to increase in the long term. This is likely to become a reality as the global economy gets back on track and the pharmaceutical and food and beverage sectors grow again.

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