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US Fumaric Acid Prices Likely to Show Declining Trend in June 2023
US Fumaric Acid Prices Likely to Show Declining Trend in June 2023

US Fumaric Acid Prices Likely to Show Declining Trend in June 2023

  • 20-Jun-2023 11:17 AM
  • Journalist: Patrick Knight

The price of Fumaric Acid is expected to drop throughout the month of June 2023 in the US. Several factors contribute to the decline in prices, including increased supply, reduced demand, and a weaker currency.

Global Fumaric Acid production has increased in recent months as new production facilities have been commissioned in the US and China. Fumaric Acid is a byproduct of the production of Maleic Anhydride, and the global production of Maleic Anhydride has increased in recent months. This has led to an increase in the supply of Fumaric Acid, which suppresses prices. Global production of feedstock Maleic Anhydride has increased in recent months due to several factors, including China's economic growth and expanding new production capacity in India. This has led to an increase in the supply of Fumaric Acid, which suppresses prices in the US market.

Demand for Fumaric Acid is also likely to decline this month due to a decrease in manufacturing and construction activities, and also, dropping demand from the food and beverage industry further supported the trend. Also, the slowdown in the global economy and the shift to more sustainable alternatives further support the depreciating trend. Also, as the second quarter of 2023 is going to commence, the domestic suppliers will destock their existing inventories and replenish their inventories with fresh supplies likely to drop their quotations.

Inflation has been rising in the USA in recent months. This puts pressure on consumers and businesses and leads to a slowdown in economic activity. The US Federal Reserve raises interest rates in an effort to combat inflation. This makes it more expensive for businesses to borrow, leading to slow trading activities. Geopolitical tensions, such as the war in Ukraine, are also weighing on the US economy. This leads to market uncertainty and volatility and contributes to a slowdown in economic activity.

Furthermore, the US dollar has weakened against other currencies recently. This makes it more expensive for foreign buyers to purchase Fumaric Acid, which is also putting downward pressure on prices. A drop in Fumaric Acid prices is likely to have a significant impact on the industry. Some producers may be forced to cut production or lay off workers, while others may be able to increase their profits.

According to ChemAnalyst, it is possible that Fumaric Acid prices are likely to rebound in the future if demand increases or supply decreases. Restocking activities and merchants placing orders in bulk to replenish their inventories with fresh supplies are likely to improve the market situation.

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