For the Quarter Ending March 2022
North America
Fumaric Acid prices surged in the North American market during the 1st quarter of 2022 on the back of increased demand and higher upstream costs. The strong demand for Fumaric Acid majorly came from the food, pharma, and chemical industries. Meanwhile, enhanced prices of upstream Maleic Anhydride soared the production cost of Fumaric Acid, which in turn influenced its price value. Furthermore, intensified crude oil value, incremented freight charges, labor shortages, and port congestions amid Russia-Ukraine war tensions propelled the prices of Fumaric Acid in the domestic market. Conclusively, the evaluated prices of Fumaric Acid in the USA at CFR New York were USD 1060/MT in January, which augmented to USD 1935/MT during February.
Asia Pacific
The Asia-Pacific region witnessed an upward trajectory in the prices of Fumaric Acid during the 1st quarter of 2022, backed by strong demand and increased feedstock prices. The enhanced demand from bakeries and confectionaries, along with higher consumption in the paint industry, escalated the offtake of Fumaric Acid in the domestic market. Furthermore, the inclined prices of Benzene and then Maleic Anhydride propelled the price value of Fumaric Acid. In addition, congested ports augmented crude oil prices and freight charges and exacerbated the Fumaric Acid prices. Hence, In India, the prices of Fumaric Acid Ex-Mumbai settled at USD 2266.67/MT during the month of March.
Europe
The prices of Fumaric Acid soared in the European Countries during the quarter 1 of 2022 on account of firm demand and enhanced prices of Benzene. The increased consumption of packaged and processed food escalated the offtake of Fumaric Acid in the domestic market of Europe. Besides, consistent increment in the prices of upstream Benzene inclined the price value of Fumaric Acid. In addition, skyrocketed crude oil prices, augmented freight charges, port congestions, and cargoes shortage owing to continued conflict between Russia and Ukraine further added to the already intensified prices of Fumaric Acid. Thus, the observed prices of Fumaric Acid in Germany were USD 2094/MT CFR Antwerp during the month of January, which followed an upward Trajectory till March.
For the Quarter Ending December 2021
North America
Fumaric Acid prices in North America continue to trace an upward trajectory in North America following the restricted availability of feedstock Maleic Anhydride. Demand for Fumaric Acid in North America remain firm from pharma, chemical and food and beverage industry. However, easing freight charges and slow down in the export demand for the product restrained a steep rise in its prices. Buyers were heard purchasing cargoes at premiums in order to abate any hurt to consumer. Fumaric Acid prices thus showcased a significant hike by USD 300-500 per MT in the US market.
Asia
Fumaric Acid prices in India continued to remain firm backed by strong demand and restricted availability in the regional market. Inflationary pressure and production halts across China continued to impact prices of several commodities in Indian market. Major manufacturers revealed that rising raw material cost was another major factor behind this steep price escalation for the product across Asian market. However, these hikes slowed down by late-November as market activities gradually improved which induced price stability. Thus, after significant improvement in prices, Fumaric Acid CFR prices rose effectively to USD 1545 per MT in October.
Europe
In Q4, Fumaric Acid prices continued to climb in the European market backed by restricted availability of the raw material from the Asian region. On the other hand, consistent climb in energy values also assisted in giving a significant push to its prices in the quarter ending December. Also demand from end use segments remained stable, prices for the product witnessed a considerate climb owing to the limited availability of material.
For the Quarter Ending September 2021
North America
In Q3 of 2021, Fumaric Acid prices soared in North America backed by the volatility in the energy feedstocks in the region. In addition, squeezed supply of feedstock Maleic Anhydride and firm demand from the downstream sectors including pharmaceuticals and food & beverages also contributed to the hike in the pricing trend of Fumaric Acid. Curtailment in the production rates and supply chain disruption as an impact the Ida hurricane that made landfall in August end in the Gulf Coast of the USA also exerted burden on the Fumaric Acid market in the region. Besides, logistics problems caused by the shortages of trucks across the US region which further hampered the supply chain and led to the spike in the prices of Fumaric Acid in this quarter.
Asia Pacific
In Asian Pacific region, Fumaric Acid prices kept tracing upward trajectory in the third quarter of 2021 due to the spike in the feedstock values and sturdy demand from the downstream sectors. In India, a steep climb in the prices of Fumaric Acid was witnessed in this quarter backed by the several factors including its limited availability and firm demand from the downstream pharmaceuticals and agrochemicals sectors. Additionally, in India, as Fumaric Acid is majorly imported from China and Germany, soaring freight charges and extreme shortages of shipping containers supported the hike in the pricing trend in the region during this quarter. Fumaric Acid 85% Ex-Mumbai prices stood at USD 1641.77 per MT in September showcasing a hike by around USD 772.6 per MT since July.
Europe
In Europe, Fumaric Acid market encountered restrained supplies of feedstock Maleic Anhydride that kept its prices in the upward trend during the third quarter of 2021. As Maleic Anhydride is imported prominently from US thus, limited supplies and soaring freight charges led to the hike in the values of Fumaric Acid. Due to the arrival of Ida hurricane in the gulf coast of USA many industries remained closed for around 2 weeks that not only disrupted the production rates but also the supply chains which consequently affected the European market in this timeframe. However, demand from the downstream sectors remained firm throughout the quarter.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supply remained low as operations in several industries were shunned amid the limited availability of feedstock Maleic Anhydride. However, extended lead times and better netbacks from the European region delayed the South Asian cargoes to the US. Demand was surged from the downstream food industry and offtakes remained consistent from the pharmaceutical sector. As a repercussion of tightness in the overall North American market, prices of Malic Acid remained in upswing during the second quarter of 2021.
Asia Pacific
Demand for Fumaric Acid declined in the second quarter of 2021, as the resurgence of second COVID wave severely impacted the food and restaurant business in the Southeast Asian region hence the offtakes were slumped from the food industries. Buyers were reluctant to procure higher margins amidst the hovering uncertainties in the regional domestic market. Due to the increment in supply offtakes, the demand and supply gap of Fumaric Acid narrowed in the second half. Overall, the pricing trend at ex-Work Mumbai declined and settled at USD 1322 per tonne in June.
Europe
During the second quarter of 2021, supply of Fumaric Acid in the European market was extremely short during in the first half of the quarter due to limited availability of the key feedstock. However, the supplies of Fumaric Acid picked pace in the later half as the shipment from the USA improved along with the increase in production rates in the major Maleic Anhydride facility. Further it is anticipated that the supplies tightness will likely continue till next quarter as a major producer Maleic Anhydride declared turnaround in June.
For the Quarter Ending March 2021
North America
During the first quarter of 2021, the Fumaric Acid market in North America was negatively impacted due to shortages of the raw materials which led to the tight supply of Fumaric Acid, as upstream production was disrupted by sub-zero temperature conditions in USA Gulf region, forcing Fumaric Acid producers to temporarily shut operations. The Asian shipments were directed to USA in desire for the better netbacks in the midst of the surged costs of Fumaric Acid due to market tightness. Demand improved as the offtakes were better from the food preservatives and Unsaturated Polyester Resin (UPR) segments.
Asia-Pacific (APAC)
During the first quarter of 2021, Asia Pacific Fumaric Acid market witnessed tight supplies due to the low inventory levels of the upstream which negatively impacted the production levels in the first half of the quarter amid the planned turnarounds heard in several regional plants. However, the shortage eased as several plants ended their turnaround after the Chinese lunar New Year holidays and looked for replenishing inventories towards the end of Q1. Demand surged from the downstream food preservatives and pharmaceutical sectors. Due to hiked prices of upstream products, price of Fumaric Acid was also raised effectively. FOB Shanghai prices for March deliveries were assessed around USD 1330 per tonne in March.
Europe
Supplies of the Fumaric Acid remained tight since the previous quarter and augmented well during the first quarter of 2021. Reduced imports from the USA, due to the production hiccups amid the severe weather conditions in February disrupted the transportation of the raw materials for continuous operations in the plants. Demand strengthened from the downstream food preservatives and pharmaceutical sector as the commercial and economic activities paced up to recover the losses incurred in 2020.
For the Quarter Ending December 2020
Asia
Demand for Fumaric Acid witnessed an increment due to increased demand from food and beverage industry in Q4 as compared to Q3 of 2020. In the month of November, the demand for Fumaric Acid witnessed a rise due to the festive seasons in India as it is widely used as a food additive in food industry to increase the exotic and ethnic flavors in various food and beverages. Since countries like India, Indonesia and China are continuously expanding their infrastructure Thus a huge demand for Fumaric Acid has been derived through these countries in Asia Pacific region as these economies were making continuous progress to curb the losses witnessed during Corona period.
Europe
Due to the new strain of coronavirus followed by a second lockdown across the region, market sentiments for global Fumaric Acid have been severely hit in the European market. Industries like food and beverages and construction were the worst affected due to reduced manpower. With the imposition of second lockdown the region witnessed a downward slope in demand for Fumaric Acid that consequently led to a decrease in its prices in the final quarter. Besides, the consistent surge in the demand from pharma sector provided hopes to Fumaric Acid players that soon the market of Fumaric Acid will revive.
North America
With the buzz of roll out of corona vaccine in several parts of the globe, the market of North America seems became active again in Q4, although it is expected to take some more time to go back to its pre corona phase. Owing to the substantial increase in offtakes, food and beverages, chemical and pharma were the major industries which showcased maximum demand for Fumaric Acid. Consequently, its prices too witnessed marginal fluctuation with the volatility in prices of Benzene which is used feedstock for Maleic Acid through which Fumaric Acid is synthesized.
