For the Quarter Ending March 2023
North America
The overall market dynamics of Succinic Acid remained on the lower edge on account of sluggish demand outlook and market dullness in the first quarter of 2023 in the US market. The fluctuations in feedstock (n-butanol) cost on the domestic market have a proportional impact on the product's pricing dynamics. A decline in downstream Demand, as well as high inflation rates, influenced succinic acid market pricing in the United States throughout the quarter. The volume of supply available was sufficient to meet the downstream industry's Demand. Factors such as natural calamity and the US bank crisis impacted the price trend for succinic acid in the regional market.
Asia Pacific
Succinic Acid prices showcased mixed price dynamics on account of volatile feedstock (n-butanol and benzene) prices along with varying demand trends in Q1 of 2023. The domestic and overseas buyers restricted themselves from placing higher orders amidst the slow Demand and the lower operational activities in the domestic market. Lunar holidays and labor shortages impacted the industrial pace in the domestic market. Moreover, Demand in the pharmaceutical industry has also decreased. Succinic Acid market prices were determined by the Chinese market's slow product demand in the food industry.
Europe
The German market witnessed a declining trend for the succinic acid market throughout the first quarter of 2023 due to factors such as weak Demand, protest rallies, and lower importing prices in the domestic market. Succinic acid market prices in Germany were influenced by a decline in feedstock (n-butanol) prices in major exporting countries mixed with sluggish downstream Demand. German chemical businesses saw their investment plans slashed throughout Q1. As goods output declined, so did work backlogs, resulting in a proportional decline in purchasing power. Input and output inflation both declined, but employment rose somewhat. The product's Demand remained moderate in the downstream, cosmetics, and solvent sectors.
For the Quarter Ending December 2022
North America
In the fourth quarter of 2022, mixed sentiments for the prices of Succinic acid were witnessed in the North American market. The prices inclined in the first half of the quarter as the demand from the food and beverages sector remained upbeat, and suppliers reported frequent queries about the product. Production increased at a marginal rate with aid from easing supply bottlenecks, while new orders declined as the quarter entered H2 as a result of growing consumer conservatism. The inflation rate and economic uncertainty significantly impacted the production cost. Unemployment raised marginally as a result of cost-cutting measures, uncertain future demand, and decreased production demands, consequently showcasing its impact on the prices of succinic acid in the second half of Q4 of 2022.
Asia Pacific
An inclining trend in the market prices of succinic acid was witnessed throughout the fourth quarter of 2023 in the Asia-Pacific market owing to the fluctuating prices of feedstock (benzene and n-butanol). The Chinese market remained quiet as the rising Covid cases in the country along with supply chain disruption, hampered the industrial operations of Succinic acid. Furthermore, the demand for the product in the last quarter remained on the upper edge from the downstream food and beverages sector in the region. Industrial units had to temporarily halt their production due to staff shortages and high energy prices as coal prices increased. The demand from the international market also slowed as the buyers feared predicted global economic uncertainty.
Europe
In the fourth quarter of 2022, the Succinic Acid prices inclined in the European market due to increased demand from the downstream sector and high commodity prices. According to market insiders, input cost pressure and firm demand dynamics led to elevated importing prices in the first half of Q4 of 2022. Throughout the quarter, the output and new work fell slightly, in part due to better stockpile availability. As input costs rose, the pressure on the prices increased as supply chain bottlenecks were relieved. Weather changes and varying energy demand impacted the market prices of Succinic acid in the European market.
For the Quarter Ending September 2022
North America
Succinic Acid prices showcased mixed sentiments in the US market during the third quarter of 2022. According to market participants, the country's inflation rate and supply chain imbalance occurring due to port congestion, labor, and container shortages impacted the production cost of Succinic Acid in the US. Feed, maleic acid, n-butanol, and benzene prices also increased in the US market. Another critical factor driving up prices is increased interest in the product in the US market by major manufacturers and suppliers. Furthermore, the demand for bio-based Succinic Acid has remained low due to inflation. The food services and cosmetics sectors governed domestic market prices. Because of the high vessel volume and labor shortage, US ports remained congested. The energy crisis increased production costs as well. Meanwhile, freight charges have declined substantially from Asia to North America. As a ripple effect, the Succinic Acid prices for CFR Texas (USA) settled at USD 3630/MT.
Asia Pacific
In the Chinese market, Succinic Acid prices followed the downfall in the third quarter of 2022 amidst a low downstream demand outlook. At the beginning of the third quarter of 2022, the export percentage in China was high, yet the domestic demand remained low. Furthermore, China's production rate was low, which impacted the factors such as the energy crisis, public holidays, and slow demand. Due to port congestion in the country, Succinic Acid availability with major end-use producing manufacturers remained restricted towards the quarter end. Typhoons ravaged Asian countries; thus, the ports of Qingdao and Ningbo faced a halt in activities towards the end of the quarter. As a ripple effect, the Succinic Acid prices for FOB Qingdao (China) settled at USD 2040/MT.
Europe
In the third quarter of 2022, Succinic Acid prices showcased mixed sentiments in the European market due to increased demand from the downstream sector. According to market participants, crude oil prices returned to pre-war levels as recession fears surfaced and the demand outlook remained uncertain, consequently increasing benzene (upstream) prices in the quarter starting. Demand for bio-based Succinic Acid was slow towards the end of the third quarter, owing to the high inflation rates and natural gas prices. Healthy food ingredients have been prioritized due to sluggish demand in the domestic market. As a ripple effect, the Succinic Acid prices for CFR Hamburg (Germany) settled at USD 3000/MT.
For the Quarter Ending June 2022
North America
In the second quarter, the market sentiments of Succinic Acid in the North American region continued to follow the uptrend of rising feedstock, Benzene, and maleic acid prices. A hike of 1.3% was witnessed in this quarter compared with Q1 as the demand from downstream, food, and pharmaceutical sectors remained active. Besides Benzene and maleic acid, corn and sugarcane are also used to produce Succinic Acid. Hence, the supply shortage of corn in the domestic market impacted the market sentiments toward Succinic Acid. Moreover, cosmetics and personal care sectors governed the market sentiments of Succinic Acid in the North American market. The rising temperature in the region also elevated the electricity demand, proportionally raising the energy cost.
Asia Pacific
In the Asia-Pacific region, the overall price trend of Succinic Acid remained on the lower edge owing to the quiet market sentiments. A fall in the prices of Succinic Acid was witnessed during the quarter starting as the major countries such as China, and Taiwan suffered from strict lockdown, and Covid cases hiked. Crude oil prices fluctuated in the regional market as the demand from end users was low. Furthermore, the import quantity of Benzene reduced proportionally, leading to a supply shortage among major manufacturers in the regional market. As a ripple effect, market dullness occurred, leading to less product inquiry in China, consequently declining the prices in the market. Countries such as India and South Korea had supply shortages and diminished demand governing the market sentiments of Succinic acid in Asia-Pacific.
Europe
In the second quarter of 2022, the overall market sentiments toward Succinic acid were positive. The quarter started on a negative edge due to the slow demand from downstream food and pharmaceutical sectors in the regional market. Feedstock prices, corn, and sugarcane also remained on a higher edge as commodity inflation occurred in the regional market. Furthermore, Benzene and maleic acid market sentiments were observed to be high. The demand and supply chain gap increased as the demand was high, and manufacturers faced supply shortages. These facets led to high production costs in the regional market, raising prices.
The market sentiments of Succinic Acid in the North American region showcased an upward trajectory in the first quarter of 2022. Owing to the increased feedstock prices, Succinic acid prices soared at the quarter end. When compared with the Q4 of 2021, 8% increment has been witnessed in the first quarter of 2022. Furthermore, market sentiments of Succinic Acid were governed by the surging demand from the downstream sectors such as food and beverages, cosmetics, and personal care. The quotations during the first quarter were observed as USD 2936/MT, CFR Texas USA in the month of January and USD 3117/MT, CFR Texas, USA towards the quarter end.
During the first quarter of 2022, the market sentiments of Succinic acid showed buoyancy in the Asia-Pacific region. In comparison to Q4 of 2021, a surge of nearly 11% was noticed in the first quarter of 2022 owing to the high demand in the pharmaceutical sectors amidst the Omicron virus infection in China and other Asian countries. Moreover, the upstream maleic acid, benzene prices observed growth because of political stress between Russia and Ukraine leading to high production cost of Succinic acid and supply disruption in the overseas market. As a ripple effect, prices of Succinic Acid were observed at USD 2551/MT, FOB Qingdao at the start of quarter and USD 2665/MT, FOB Qingdao, China in the quarter end of 2022.
In the first quarter of 2022, Succinic Acid prices in the European market followed an uptrend due to material shortage because of supply chain disruption. The ongoing conflict between Russia and Ukraine impacted Succinic Acid market sentiments in the European region as the prices of upstream benzene along with maleic acid spiked which forced the European manufacturer to increase the production cost of Succinic acid, to cater the domestic demand these facets became the driving force for the surge of 8% in first quarter of 2022 as compared with Q4 of 2021.
