For the Quarter Ending September 2023
In the third quarter of 2023, demand for oxalic acid from metal cleaning, leather tanning, and wood bleaching industries increased in the third quarter of 2023, which contributed to the price increase. In July 2023, Oxalic Acid prices in the US were assessed at USD 560 per metric ton. This was a slight increase from the previous month due to increased demand from the downstream industries and supply disruptions. There were a number of supply disruptions in the North American region in the third quarter of 2023, which also contributed to the price increase. These disruptions included plant closures and transportation delays amidst Union worker strikes during the third quarter. The cost of energy has risen significantly in recent months, and this has also contributed to the increase in the price of oxalic acid, as it is an energy-intensive product to produce.
In the Chinese market, Oxalic Acid prices have shown mixed sentiments during the third quarter on the back of changing demand sentiment in the last three months. In the first couple of months, ample demand from downstream metal cleaning and other industries resulted in firm procurements as there were active procurement activities. However, procurements slowed down in the second half as the buyers remained circumspect while procuring, and there was hefty wait-and-see behavior amongst the buyers. There was a decline in demand from the international market, and thus, there were limited procurements from the overseas market as well. Hence, after the conclusion of Q3 2023, Oxalic Acid prices were assessed at USD 514 per MT on an FOB basis.
In the European region, during the third quarter of 2023, Oxalic Acid prices increased in the first half; this was due to a combination of factors, including strong demand from the end-user industries, supply disruptions, and the rising cost of energy. However, Oxalic Acid prices have dropped towards the second half of 2023 as the demand from the downstream industries eased amidst declining economic activities. After the conclusion of Q3, Oxalic Acid prices in Germany were assessed at USD 534 per MT on FD basis. Meanwhile, imports from the Asian region increased as freight charges dropped sharply during the quarter, and the global trading pattern witnessed a slowdown.