US Fumaric Acid Prices Predict to Fall During December 2022
- 07-Dec-2022 12:08 PM
- Journalist: Harold Finch
USA: Fumaric Acid prices started to fall in the US domestic market during the first week of December 2022, based on ChemAnalyst data. Fumaric Acid is frequently used as an acidity controller in baking powders and beverages with rigorous purity requirements. Fumaric Acid, a food preservation & leavening agent, is also utilized in tortillas' production. Despite increasing demand, the prices of Fumaric Acid are expected to fall.
The primary factor influencing the price trend of Fumaric Acid in the US is the decline in the cost of the upstream ingredient, maleic anhydride, and other factors, most likely due to the lack of customer demand. Additionally, the market for feedstock maleic anhydride produced by the benzene process was shut down this week in China's domestic market. The factory is now closed for repair, there is a lack of market circulation supply, and the domestic maleic anhydride market's benzene oxidation process is experiencing severe losses. This week, there were sufficient first-stage maleic anhydride plants, a moderate downstream resin purchase, and a cautious transaction. The upstream market for pure benzene has also changed this week.
Increasing demand for Food and Beverages due to the growing world population is one of the key factors driving the Fumaric Acid market. Leading market rivals are also focusing on product innovations and strategic collaborations to broaden their product portfolio and market reach. Despite this, demand is declining in the US Food and Beverage sectors since domestic companies already have enough Fumaric Acid on hand and do not need as much importation from China.
According to ChemAnalyst, a drop in demand from end-use industries will lead to a decrease in the price of Fumaric Acid. The price will drop due to the product's abundant supply, low demand, and falling raw material costs. A significant amount of inventory held by the merchants in the local market would also cause further fluctuations in the price of Fumaric Acid.
