For the Quarter Ending September 2022
In the third quarter of 2022, the North American citric acid market had conflicting sentiments as prices decreased in the first half of the quarter before rising in the second. Due to continuous market demand and sufficient supply to meet consumer demand, prices stabilized in the first half of the quarter. Prices fell in the second part of the quarter because of a decline in market offtakes. A large amount of inventory on the domestic market has also contributed to a fall in the product's price. A substantial number of items had their prices lowered since the domestic market was being restocked. The producers were compelled to sell the goods at a smaller margin because they were worried about losing money. Towards the end of the quarter, the prices for Citric Acid were assessed at around USD 1350/MT for CFR New York in September.
The Asia Pacific region's citric acid market experienced a falling market trend in Q3 2022. Due to the relaxation of regulations following the COVID policy, product delivery from China, the world's largest supplier of food additives, was consistent. Because providers and purchasers in both the Chinese and Indian markets had enough stocks, offtakes from the downstream food and beverage sectors decreased throughout the quarter. Due to the destocking and maintenance taking place in their manufacturing facilities, the manufacturers were prepared to sell the items at a lower price. Because there were so many supplies on the domestic market, prices were constantly falling. Toward the end of the quarter, the prices were assessed around USD 980/MT for Anhydrous FOB Shanghai in September.
In the third quarter of 2022, a cyclical trend was observed in the European citric acid market. Prices stabilized in the first half of the quarter because of the market's consistent demand and the availability of enough supplies to satisfy consumer demand. Because there were fewer market offtakes, prices decreased in the second half of the quarter. A decrease in the product's pricing has also been aided by the substantial number of inventories on the domestic market. As the domestic market was being restocked, the prices were reduced on a sizable number of items. Due to their concern about losing money, the manufacturers were forced to sell the goods at a lower margin. Toward the end of the quarter, the prices were assessed around USD 1980/MT for CFR Hamburg in September.
For the Quarter Ending June 2022
North American Citric Acid market showcased mixed sentiments during the second quarter of 2022 as prices decelerated in the first part of the quarter before increasing in the second. The return of COVID in China's commercial centers dramatically aggravated the import of citric acid into the US, which was already dealing with protracted port congestion. Concerns about the high pricing of food chemicals among domestic traders and customers persisted during the entire quarter due to factors including the US's surging inflation, the upheaval in Russia and Ukraine due to geopolitics, and the wildly fluctuating nature of oil prices. Demand from the region's downstream confectionary and food businesses remained robust throughout time.
During Q2 of 2022, the Citric Acid market in the Asia Pacific region stayed stagnant. Because China is the world's largest supplier of food additives, product delivery was, in fact, delayed following the covid outbreak in the second week of April. This made the nation's supply constraints and port bottlenecks worse. China's zero-tolerance regulations and legislation, which continued to obstruct manufacturing and logistics and created chaos with the transportation of different food additives and raw materials, put a burden on supply chains. The zero-covid policy led logistical and transportation networks to break down, significantly hindering the flow of goods across the country and to major international shipping ports. Offtakes from the downstream food and beverage sectors were constant throughout the quarter because suppliers and buyers in both the Chinese and Indian markets had sufficient stockpiles.
During the second quarter of 2022, the market for sodium methylparaben in the European region had a favorable trend. In terms of demand, offtakes in the end-user food and beverage sectors held steady throughout the quarter. Local merchants had a large supply of merchandise to meet the overall downstream demand in the European market. While shipping prices and the flow of goods into Europe continued to rise due to the crisis between Russia and Ukraine, it also made it harder for exporting countries to conduct business. The cost of shipping goods from China to Europe increased due to a shortage of empty cargo containers and Russia's invasion of Ukraine, which significantly affected international trade.