For the Quarter Ending June 2023
North America
In the second quarter of 2023, fumaric acid prices in the US market fell significantly due to sporadic fluctuations between supply and demand during the month. Market trading fundamentals were impacted by weak demand and high inventories. In addition, the downward trend in prices further intensified due to the global drop in phenol raw material prices. Retail sales fell due to high inflation. Retailers have also struggled with bloating inventory they ordered to meet surges in demand during the outbreak, despite stagnant demand. The price was valued at $1345/MT FOB Houston at the end of Q2 2023, representing an average quarterly decline of 5.43%. Falling fares were another factor contributing to the slowdown in development. Imports are declining as US companies struggle to dispose of large inventories. The most important container port in the United States also saw a decline in the volume of imports. And despite stagnating demand, retailers are facing inflation in ordered inventory to meet increased demand during the pandemic and possible shortages in the future.
Asia
The market price of Fumaric acid declined significantly in the second quarter of 2023, driven by weak domestic and international demand. The price was valued and acquired at USD 1166/MT FOB Shanghai as of the end of Q3 2023, with an average quarterly decline of 3.26%. During the quarter, the PMI fell below 50 points, suggesting that the manufacturing sector is contracting. China's import and export activities were mixed. Exports decreased by 3.9% year-on-year, while imports increased by 1.9%. China CFR Shanghai, the fumaric acid price chart market, showed a downward trend in prices as negotiations progressed. Due to large inventories of fumaric acid, suppliers have had to reduce prices to reduce existing inventories. In addition, this price trend was mainly due to a decrease in sales in final consumption areas, and there were no new inquiries from domestic and overseas suppliers. Prices of raw materials used to make fumaric acid, such as maleic anhydride, also fell in June. This also contributed to the price drop. Meanwhile, the Chinese government has taken steps to cool the economy, including raising interest rates and tightening the money supply. In addition, market sentiment continued to be subdued due to declining buyer demand, lower sales from downstream industries, and a lack of new inquiries from domestic and foreign suppliers. Some market participants are reducing inventories to reduce inventories and improve cash flow.
Europe
In the second quarter of 2023, the demand for fumaric acid decreased, leading to a decline in market prices. Fumaric acid prices fell by an average of 5.11% in the second quarter to $1295/MT CFR Hamburg. German fumaric acid prices are trending downward as demand from downstream sectors and imports from exporting countries such as China and India slow down. The supply of fumaric acid is increasing due to the expansion of production capacity in India, the world's largest fumaric acid producer. This has increased the supply of fumaric acid on the global market. However, the slowdown in the global economy has reduced demand for fumaric acid. Also, speculators have sold fumaric acid futures in anticipation of future price declines, putting downward pressure on prices. The government has also eased some restrictions on the importation of generic drugs, increasing the availability of generic versions of fumaric acid. Fumaric acid price performance is heavily influenced by weak buying momentum and overstock. Tariffs between China and the West Coast of the United States have recently returned to pre-pandemic levels, significantly easing congestion, and as a result, ocean freight prices have also fallen, affecting general market conditions.
For the Quarter Ending March 2023
North America
The price trajectory for Fumaric Acid in the North American region started to rise in the first quarter of 2023. Supply and demand were in equilibrium throughout the first two months of Q1 2023, which kept prices steady. The negative trajectory was backed by extremely low offtakes and bearish demand. As March officially began, the price jumped significantly, supported by rising raw material Maleic anhydride prices. This has a significant impact on both production costs and input costs. The trend was favorably impacted by rising energy prices as well as skyrocketing benzene derivatives prices. High production rates and increasing demand follow-up contributed to the upward trajectory. Towards the end of Q1 of 2023, the prices for Fumaric acid were assessed around USD 1595/MT for CFR New York in the month of March with an average quarterly declination of 2.13%.
Asia
The first quarter of 2023 saw an inclined price trajectory for Fumaric acid in the Asia Pacific region. At the commencement of Q1 2023, the prices were recorded to roll down on the back of decreased demand from the end-user sector and enough inventories among the suppliers to cater to the demand. The market for raw material Maleic anhydride witnessed a downward trajectory as crude prices fell broadly, and the cost was negative for the downstream products. This supported the Fumaric acid’s stably negative trajectory. Later in the month of March, the price proliferated appreciably on the back of the continuous shutdown of the domestic benzene maleic anhydride market. Also, the benzene oxidation process in the domestic maleic anhydride market suffered serious losses as the factories were shut down for maintenance. The supply of goods in the market was less throughout the end of March. Furthermore, the price of n-butane upstream of maleic anhydride stopped falling and rebounded back, supporting the cost of Fumaric acid. Towards the end of Q1 of 2023, the prices for Fumaric acid were assessed at around USD 1290/MT for FOB-Shanghai in the month of March with an average quarterly inclination of 3.72%.
Europe
In the first quarter of 2023, the price trajectory for Fumaric acid in the European region began to incline. Prices remained stable in the first two months of Q1 2023 in response to supply-demand equilibrium. The bearish demand and excessively low offtakes supported the negative trajectory. After the commencement of March, the price increased considerably, backed by increased raw material Maleic anhydride prices. This influenced the production cost, and input cost many folds. The increased energy prices and soaring benzene derivatives prices also impacted the trajectory positively. Rising demand follow-up and high production rates added to the rising trajectory. Towards the end of Q1 of 2023, the prices for Fumaric acid were assessed at around USD 1520/MT for CFR Hamburg in the month of March with an average quarterly inclination of 2.36%.
For the Quarter Ending December 2022
North America
Due to the protracted market instability in the United States, Fumaric Acid prices significantly dropped. China's Golden Week caused import restrictions for fumaric Acid during the first week of October. Because of their substantial inventories, domestic suppliers were able to satisfy the total demand, and during the quarter, offtakes in the end-user industries were similarly below average. For the majority of the quarter, the product market was constrained by feedstock cost, China's Covid lockdowns, Russia's instability in Ukraine, and other issues. The economy started to expand, and the ports saw a considerable decline in ship backlogs after a protracted port backlog. Thus, there was a gradual improvement in the second part of the year. Prices for fumaric Acid were estimated to be around USD 1500/MT in December for CFR New York before the conclusion of the quarter.
Asia
The fourth quarter saw a decline in the price of Fumaric Acid in the local Indian market. The closure of industrial facilities for the Golden Week caused a steady fall in orders for China's sector that manufactures fumaric Acid during the first week of October. Because Chinese traders had to contend with a variety of conflicting signals following a one-week hiatus, it was difficult for the market to catch up to the modest increase observed in several downstream industries during the first half of Q4. Large stocks made it possible for domestic producers and suppliers to satisfy the entire quarter's demand. The administration amended its zero-covid rules in response to criticism and significant unrest in the nation, which once more left the nation exposed. Prices for Fumaric Acid were estimated to be around USD 1160/MT for FOB Shanghai in December before the conclusion of the quarter.
Europe
Prices for Fumaric Acid dramatically decreased as a result of the lengthy market volatility in the European region. Throughout the quarter, demand in Germany remained on the weaker side, making it challenging for the pharmaceutical and nutraceutical businesses to plan forward and stay alive. In addition, the cost of electricity and raw materials had increased. Germany's industrial production hardly grew in October despite rising energy prices and supply-chain worries. Towards the end of the quarter, the prices for Fumaric Acid were assessed at around USD 1420/MT for CFR Hamburg in December.
Fumaric acid prices climbed in the first half of the third quarter of 2022 because of growing upstream costs and increased demand. Most of the brisk demand for fumaric acid was driven by the food, pharmaceutical, and chemical industries. Fumaric acid prices in the North American market rose during the first half of 2022 because of higher upstream costs and growing demand. Due to reduced demand for fumaric, especially from the food, pharmaceutical, and chemical industries, prices fell in the second half of the quarter. Due to the price instability of Benzene, the raw material needed to produce maleic anhydride, its pricing also fluctuated and Maleic Acid which is used to make Fumaric Acid. Prices for fumaric acid were estimated to be around USD 2140/MT for CFR New York before the conclusion of the quarter.
The third quarter of 2022 saw a decline in the price of fumaric acid in the local Indian market. Prices declined in the first half of the quarter because of ongoing maintenance on the Chinese domestic market, which also caused a decrease in the product's price. Due to destocking in the local market, which caused the product price to decrease, prices were continually falling in the second half of the quarter. Destocking was carried out as a result of worries about weather changes in China and loss aversion. It was observed that many market vendors regularly decreased the number of goods they owned, which led to a drop in the price of fumaric acid. Demand for offtakes from the downstream food and beverage sectors for preservation applications remained constant throughout the month. Prices for fumaric acid were estimated to be around USD 1579/MT for FOB Shanghai in China before the quarter's conclusion.
The availability of the feedstock, maleic anhydride, fluctuated during the third quarter of 2022, which kept Fumaric acid prices on the edge. Maleic anhydride's price rose in the first part of the quarter because it was more expensive to import it from the US, there were not as many supplies as possible, and shipping was more expensive. Since the preceding quarter, it has been difficult to find fumaric acid, and things did not get any better until the first quarter of 2022. The prices fell in the second half of the quarter as imports from the USA increased because of the high output brought on by the bad weather. As a result, it now runs nonstop. Demand from the pharmaceutical and downstream food preservation industries improved. Towards the end of the quarter, the prices for Fumaric Acid were assessed at around USD 1947/MT for CFR Hamburg in September.
