For the Quarter Ending March 2024
North America
During the first quarter of 2024, the Fumaric acid market in North America experienced notable price fluctuations influenced by several factors, resulting in a volatile pricing environment. The quarter concluded with Fumaric acid priced at USD 1400/MT CFR New York, showing an average quarterly increase of 2.51%.
A significant driver of these price changes was the sustained demand from the downstream sector, prompting bulk orders and subsequent proactive price hikes by market participants. Geopolitical tensions and trade disruptions, such as disturbances in crucial shipping routes like the Red Sea and the Suez Canal, also played a role in the price volatility. These disruptions led to higher freight charges and logistical bottlenecks, further impacting pricing dynamics. North America's heavy reliance on Fumaric acid imports, particularly from China, was a notable factor influencing market trends. Fluctuations in Chinese production, including pauses during the Lunar New Year and Spring Festival, resulted in constrained shipments and limited US inventories, prompting market players to adjust their quotes to protect profit margins.
In exporting regions, prices surged due to insufficient inventories and delayed supplies, prompting US market players to make bulk orders to ensure ample stocks, which worsened the price hike. External factors like the National Oceanic and Atmospheric Administration's warning of potential Mississippi River bottlenecks for the third year in a row due to warm, dry spring weather and low winter snowpack added to worries about shipment disruptions. This led to increased inquiries from US market players to exporting nations, further driving up prices.
Asia Pacific
In Q1 2024, the Fumaric acid market in the APAC region, particularly in China, experienced notable price fluctuations but maintained an optimistic trend, with prices steadily rising. By the end of the quarter, Fumaric acid's price in China reached USD 1229/MT FOB Shanghai, showing an average quarterly increase of 1.02%.
This positive pricing trend was driven by several factors. Increased demand from downstream sectors, along with rising raw material costs like maleic anhydride, contributed to the price hike. Limited supply and transportation challenges further pushed prices up. International demand also intensified, especially after the Lunar New Year break, stimulating a resurgence in the market. Despite temporary slowdowns during the holiday period, both regional and global interest in fumaric acid bounced back strongly. A robust export market in China supported prices, although transportation delays and higher shipping costs due to increased demand posed challenges. Overall, the market is experiencing price increases due to scarcity, with demand outpacing supply, indicating a need for market equilibrium. Moreover, external factors such as trade disruptions in the Red Sea have exacerbated the situation, resulting in escalated freight costs and diminishing foreign orders.
Europe
During the first quarter of 2024, the European market for fumaric acid, particularly in CFR Hamburg, Germany, experienced pricing fluctuations influenced by several factors. Despite concluding at USD 1390/MT with a modest 2.02% quarterly incline, the market generally trended upwards due to heightened demand from downstream sectors. This demand surge, along with global supply chain disruptions, especially in the Red Sea region, caused shipment delays and material shortages, thereby driving prices up. Currency fluctuations, such as the Euro's depreciation against the dollar, further complicated matters, impacting import costs and freight charges.
The German fumaric acid market experienced a significant recovery, marked by rising prices and a balanced supply-demand scenario. This resurgence was fueled by increased regional orders and a gradual reduction in inventory levels by merchants. Additionally, the rise in prices of crucial raw materials and the Euro's devaluation against the dollar played roles in shaping market dynamics.
Germany's position as a major importing hub contributed to market conditions, closely linked to exporting nations' trends. The resumption of production in exporting countries after holiday breaks and the easing of trade disruptions further supported market resilience across importing nations. Overall, the fumaric acid market in Europe experienced fluctuations driven by demand spikes, supply chain disruptions, and currency fluctuations, with Germany's market playing a pivotal role in regional dynamics.
For the Quarter Ending December 2023
North America
In the North American region, the pricing landscape of Fumaric Acid underwent notable changes during the fourth quarter of 2023, displaying a fluctuating trajectory throughout the period. The market exhibited an overall positive trend, witnessing an average quarterly increase of 1.66%. This upward movement can be attributed to several key factors. Firstly, heightened demand from the Asian market, fueled by an optimistic outlook and increased investment expenditures, played a significant role. Secondly, escalating input costs, especially for energy and raw materials, contributed to the overall price surge.
Moreover, logistical challenges such as port congestion and container shortages disrupted the seamless transportation of Fumaric Acid, resulting in increased transportation costs and extended delivery lead times. Downstream panel factories engaged in procurement activities with intensified bids and offers among enterprises, shaping the market dynamics. Despite these challenges, the market displayed a downward trajectory as December unfolded, with ample supplies and inventories to meet the growing demand.
The ripple effect of China's pricing strategies reverberated across the United States, impacting the overall pricing structure of Fumaric Acid. However, prices rebounded in December with a 1.16% increase. The fourth-quarter price of Fumaric Acid in the USA stood at USD 1300/MT CFR New York. Overall, the market for Fumaric Acid in North America demonstrated resilience and growth during the fourth quarter of 2023.
Asia Pacific
The Fumaric acid pricing in the APAC region during the current quarter of 2023 has been marked by several noteworthy factors. Initially, there was a substantial surge in demand, resulting in an uptick in prices. The positive market momentum prompted participants to place optimistic orders for restocking their inventories, reinforcing market dynamics and providing cost support. Specifically in China, prices experienced a significant increase throughout the quarter, with an average quarterly rise of 2.71 percent, stabilizing at USD 1192/MT FOB-Shanghai. The projected pricing trend for Fumaric acid in China indicates an anticipated decline until the end of the month. This downward movement is primarily attributed to the ongoing economic challenges that China has been grappling with post the Golden Week holiday. These challenges contributed to a rise in prices, fueled by increased demand from both consumers and corporate entities. Additionally, a decrease in production capacity among Maleic anhydride manufacturers, the raw material for Fumaric acid, led to tight supplies and limited inventory. As December commenced, the market witnessed a moderate to high supply, with merchants depleting their finished goods and addressing backlogs. Local suppliers, as reported by several manufacturers, are currently dealing with excess inventory, dissuading them from engaging in bulk purchases. Furthermore, the persistently sluggish demand outlook for Fumaric acid and the sustained strength in raw materials like Maleic anhydride suggest a complex interplay of factors influencing the market.
Europe
In the final quarter of 2023, the European Fumaric Acid market underwent notable developments that had a substantial impact on pricing. Initially, a heightened demand from end-users prompted market participants to place substantial orders to replenish their inventories. Furthermore, a shortage of Fumaric Acid in the German market contributed to increased demand, resulting in temporary supply constraints and elevated prices. Additionally, the German economy exhibited signs of weakness, characterized by a downturn in manufacturing activity and a decline in the IFO Business Climate Index. Given Germany's significant role as a major importer in the European Fumaric Acid market, it experienced a pronounced price hike, mirroring the trends observed in exporting nations. The average quarterly increase in Fumaric Acid prices in Germany amounted to 3.29%. The current quarter's Fumaric Acid CFR Hamburg price in Germany stands at USD 1310/MT. However, prices experienced a slight decline towards the end of Q4, attributed to the accumulation of stocks in anticipation of an anticipated surge in demand from respective end-user sectors.
For the Quarter Ending September 2023
North America
From July to September 2023, the (CFR new York) prices for Fumaric acid saw a decline, going from $1285/mt to $1240/mt, marking the end of the third quarter. This price fluctuation clearly indicated a preference for reducing price levels, resulting in an average quarterly decrease of 2.55%. At the start of the quarter, the domestic Fumaric acid market experienced a downturn, primarily due to declining demand across various industries. Notably, existing high inventory levels compelled sellers to gradually lower their prices each month, contributing significantly to the pessimistic pricing trend for Fumaric acid in the United States. Additionally, the weakening market dynamics were supported by the declining trajectory of the raw material maleic anhydride in exporting countries. As September began, prices started to rise due to increased costs associated with importing caused by fluctuations in the exchange rate between the US dollar and the Yuan. Although there was a modest slowdown in inflation during the third quarter of 2023 as a result of significant changes in the United States economy, market participants remained cautious because of the Federal Reserve's decision to raise interest rates. In the first week of September, there was a noticeable surge in warehousing costs, warehouse usage, and inventory expenses in the United States. Consequently, commodities like Fumaric acid saw price increases due to the rising costs associated with inventory management and storage. To summarize, it's likely that importing countries experienced a trajectory similar to that of exporting countries during this period.
Asia Pacific
In the third quarter of 2023, there was a noticeable decrease in the overall price of Fumaric acid. Prices declined from $1110 per metric ton in July to $1103 per metric ton (FOB Shanghai) in September. This price fluctuation indicated a significant change, resulting in an average quarterly drop of 1.66%. China, the world's second-largest economy, experienced slower growth in the first half of 2023, which continued into the second half, negatively affecting the beginning of the third quarter. This slowdown was primarily due to increased deflation, high youth unemployment, and weak foreign demand. At the same time, the prices of the raw material, Maleic anhydride, in the Chinese market decreased due to lower n-butane prices. The market showed ample supply, with factories maintaining substantial inventories. Although production gradually resumed, demand did not significantly improve, leading to a supply-demand balance and keeping the market weak during the first two months of Q3. However, by September, increased demand and disruptions in the supply chain caused an imbalance, leading to rising prices. The consistent demand for Fumaric acid from both domestic and international markets, along with new inquiries, contributed to this upward price trend. This occurred while considering the current conditions of the nations and the overall market situation. Regarding manufacturing, Fumaric acid production in the country was based on customer demand. In the latter weeks of September, just before the Golden Week holidays, there was a slight increase in both freight and manufacturing due to a spike in demand and inquiries. Another factor that drove up prices was strategic bulk orders from market participants looking to replenish their inventories. The heightened demand during the holiday season led many buyers to accelerate their Fumaric acid procurement, increasing overall demand pressure.
Europe
In the third quarter of 2023, the price of Fumaric acid displayed a consistent trend, with a slight drop from $1230 per metric ton in July to $1190 per metric ton (CFR Hamburg) by September. This pattern indicated a significant price decline, resulting in an average quarterly decrease of 2.67%. At the commencement of Q3, Consequently, the global Fumaric acid market experienced an oversupply, leading to a noticeable decrease in its market value. To compound the situation, domestic traders amassed significant Fumaric acid inventories and, as a strategic move to minimize losses, they chose to lower their price quotes, further contributing to the overall market suppression. This price reduction can be attributed to a substantial drop in the cost of its primary raw material, Maleic anhydride, in the preceding months. The decrease in Maleic anhydride prices subsequently reduced production costs for Fumaric acid manufacturers. Additionally, reduced raw material expenses have made the production of Fumaric acid more cost-efficient, and these cost savings are being passed on to consumers. Furthermore, a stable demand outlook for Fumaric acid has played a significant role in the price reduction. Later as September commenced the prices began to surge as the energy prices, shipping costs, and production costs rose. Also, the increased prices of raw material maleic anhydride in the exporting countries further provided positive cost support. In summary, it's likely that importing countries followed a trajectory similar to that of exporting countries during this period.
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.
For the Quarter Ending September 2022
North America
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.
Asia
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.
Europe
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.
For the Quarter Ending June 2022
North America
In the second quarter of 2022, the price of Fumaric acid in the North American market skyrocketed due to rising upstream costs and increased demand. The food, pharmaceutical, and chemical industries accounted for most of the robust demand for Fumaric Acid. Due to rising upstream costs and increased demand, Fumaric acid prices skyrocketed in the North American market during the second quarter of 2022. Fumaric acid was in high demand, primarily from the food, pharmaceutical, and chemical industries. As a result, its prices also experienced some fluctuation due to the price volatility of Benzene, the feedstock required to make Maleic Acid, which is used to make Fumaric Acid.
Asia
Fumaric Acid prices in the Indian domestic market demonstrated a downward trend throughout the second quarter. As a substantial amount of the food chemicals and additives used in the Food and Beverage sectors are imported from China, and the country was under lockdown, the reopening of ports and marketplaces increased demand for Fumaric Acid from Indian traders. Due to the fear of loss aversion and worries about weather changes in India, it was noticed that many local market vendors frequently reduced the amount of goods they possessed, which resulted in a decline in the prices of Fumaric Acid. Offtakes for preservation applications from the downstream food and beverage industries remained steady throughout the month in terms of demand.
Europe
During the second quarter of 2022, the European Fumaric Acid market faced limited feedstock Maleic Anhydride supply, which kept prices rising. Since Maleic Anhydride is primarily imported from the US, there were fewer supplies available and freight costs increased, which caused the price of Fumaric Acid to rise. Fumaric acid has been hard to come by since the previous quarter, and things didn't get much better until the first quarter of 2022. Imports from the USA have declined due to production issues brought on by the inclement weather in February. This has made it challenging to run constantly. Demand from the pharmaceutical and downstream food preservation industries improved as commercial and economic activity surged to compensate for the losses sustained in 2020.
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
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
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.
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.
