The US Tartaric Acid market took a breather in the first half of January as prices dropped by 1.6% - the usual post-holiday decline. After an aggressive year-end buying spree, buyers in the beverage, bakery, and construction sectors took it easy on spot purchases, while a fall in Asia-to-USA freight costs helped ease the landed cost from China. California wineries were still churning out domestic production but their impact on supply was negligible. The main reason was imports from China, Italy, and Spain, which dominated the market. And even though the tariffs were still in place, the drop-in trans-Pacific freight rates helped narrow the effective price difference. Despite all this, demand remained quiet, with beverage manufacturers and bakery premix makers chugging along on what they already had in stock, and a bunch of cold weather putting the brakes on construction-related acid usage. A couple of specialty grades of Tartaric Acid still managed to shift, but winery demand remained slow. Inventory at distributors was looking healthy, so overall, the market looked balanced with no great pressure to restock. Looking ahead to the rest of January, prices are likely to stabilize. Most market experts reckon it will be a flat trend, with just a few minor adjustments as buyers take a cautious approach to buying and suppliers try to keep their prices competitive.
