For the Quarter Ending March 2024
North America
The North American market showcased pessimistic sentiments for Succinic Acid during the first quarter of 2024. At the beginning of the quarter, supply rates were firm from Asian exporters as the production rates were robust in the producing country. Meanwhile, offtakes from the domestic market were moderately low due to sluggish operating and consumption rates during the New Year holidays.
During the mid-quarter, the textile industry witnessed a slowdown amid the rise in material costs, which suppressed the demand from Polyester fibre manufacturers amid ample availability of stocks. Consequently, Asian exporters dropped their quotations amid increased stock availability in the international market after the reopening of the Chinese market after the Lunar New Year holidays.
The global freight costs eased towards the end of the quarter, attributed to container traffic bypassing the Suez Canal, which stabilized operations and reduced ocean rates on major trade routes. It reduced the Succinic Acid import costs. Concurrently, demand for Succinic Acid stabilized among personal care product manufacturers due to decreased consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Additionally, inquiries from Polyester fiber makers were low due to a decline in offtakes, and inventory levels rose in the regional market. Conclusively, Succinic Acid CFR Texas quotations in the US accessed at USD 1630/MT at the end of the first quarter of 2024.
APAC
During the first quarter of 2024, the Succinic Acid market showcased bearish sentiments in the APAC region, and prices were dropped consistently by the major Succinic Acid producers in China. At the beginning of Q1, the demand for Succinic Acid was depressing from Polyester manufacturers in the textile sector amid sluggish demand for end products during winter. Simultaneously, product offtakes were moderately low for stocking purposes before the Lunar New Year holidays in major producer China due to reduced applications in the horticulture sector. During the mid-quarter, the product demand fell from the food sector after the celebration of festivals around Lunar New Year in the Asian region, and inventory levels increased in the market. Consequently, producers again dropped their quotations, and prices fell again in the regional market towards the end of the quarter. Additionally, ocean rates declined again because of the Red Sea crisis, which negatively impacted product supplies in the international market, and inventory levels remained in the regional market. Simultaneously, the food sector exhibited low demand for the product. Concurrently, Succinic Acid demand stabilized among personal care product manufacturers due to reduced consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Conclusively, at the end of the first quarter of 2024, the Succinic Acid FOB Qingdao in China witnessed USD 1450/MT.
Europe
The Succinic Acid prices in Europe followed a downward trajectory like the Asian region in the first quarter of 2024. Initially, production rates were stable in the producing country, and Asian exporters reduced their quotations due to decreased demand and increased availability of stocks. In the mid-quarter, prices declined again as stock availability improved in the international market following the reopening of the Chinese market post-Lunar New Year holidays. Additionally, the textile industry experienced a slowdown in February 2024 due to rising raw material costs and ample availability of previous stocks, which suppressed orders from Polyester fibre manufacturers. Towards the quarter's end, demand for Succinic Acid decreased as consumption rates dropped, resulting in low offtakes from Polyester makers. Concurrently, demand among personal care product manufacturers stabilized due to reduced consumption of moisturizers amid rising temperatures in the Northern Hemisphere. Additionally, import costs decreased due to a reduction in global freight costs as container traffic bypassed the Suez Canal, stabilizing operations, and lowering ocean rates on major trade routes. In conclusion, Succinic Acid CFR Hamburg in Germany was assessed at USD 1570/MT at the end of Q1, 2024.
For the Quarter Ending December 2023
North America
The Succinic Acid price movement oscillated in the North American region, and prices decreased by almost 11% compared to the previous quarter during Q4 2023 due to reduced demand and procurement activities from end-user industries, and exporters lowered their quotations.
Simultaneously, at the beginning of the quarter, the feedstock Benzene prices witnessed a decline during the mid-month amid a decline in Crude Oil prices by OPEC+ due to stabilization in speculations around the supply chain disruptions in the Middle East amid conflict between Israel and Palestinian Islamist Group. The supply of Succinic Acid was moderate from the key exporter China. In the mid-quarter, the demand remained low in the market amid a decline in consumption rates from the food sector. Concurrently, orders depressed from the textile industries amid dampened Polyester fiber demand and use with the arrival of winter. However, orders were stable from the Pharma sector.
Towards the end of Q4, an escalation in freight charges through the Panama Canal raised product import prices. Additionally, the decline in the water levels of the Panama Canal and Mississippi River caused supply chain disruptions and affected the supplies in the regional market. Conclusively, at the end of Q4, 2023, import quotations for Succinic Acid CFR Texas in the USA hovered at USD 1750/MT.
Asia
In the final quarter of 2023, the Succinic Acid market in China fluctuated in the APAC region, with prices declining by 14% compared to the previous quarter. The main factors that impacted the market were dampened demand from buyers and alterations in production rates and supply availability in the regional market. Initially, the market experienced a bearish trend as the orders fell from the textile sector with the arrival of winter and a decline in demand for Polyester fibre. Simultaneously, the feedstock Benzene prices fell due to a decline in upstream Crude Oil prices amid weakening US and European economies, which reduced the production costs. In the mid-quarter, the trading activities declined due to reduced orders from the regional buyers. On the contrary, the Succinic Acid inventory levels were adequately available in the market. Meanwhile, the market also witnessed a moderate decline in demand from the food sector during the winter season. Towards the end of the quarter, a fire incident on 23rd December at Qilu Petrochemical in Shandong Province resulted in stressed supplies of feedstock n-butanol, and production rates were affected in key Succinic Acid producer China. Simultaneously, the market showcased improvement from the regional clothing fibre industries due to increased consumption and an increase in regional retail sector sales in the concluding month of the year. At the end of the quarter, the Succinic Acid FOB Qingdao quotations in China witnessed USD 1590/MT, while in South Korea, Succinic Acid CFR Busan hovered at USD 1620/MT.
Europe
Like the North American region, the Succinic Acid price trend oscillated in the European region during the fourth quarter of 2023, and prices witnessed a decrease of almost 9% compared to the previous quarter. This decline was mainly due to reduced demand and procurement activities from end-user industries, leading exporters to lower their quotations. The demand for Succinic Acid was low to moderate, with a decline in orders from the textile industry due to a decrease in polyester fibre demand during the winter. In the mid-quarter, consumption rates declined from the food sector because of a contraction in the food sales index by 1.1% in October 2023. Simultaneously, there was a decrease in offtakes and procurement activities from buyers, resulting in higher inventory levels, while supply rates remained moderate during the period. Towards the end of the quarter, availability of supplies remained tight in the regional market amid supply chain disruptions. The Asian exporters reduced their supplies to the regional market amid a simultaneous increase in ship traffic after the Houthi Rebels in Yemen attacked the vessels in the Red Sea and commercial vessels rerouted to the Cape of Good Hope. At the end of Q4, the import quotations in Germany Succinic Acid CFR Hamburg witnessed USD 1770/MT.
For the Quarter Ending September 2023
North America
The Succinic Acid prices oscillated in the North American region during the Q3 of 2023 amid moderate demand and supply dynamics. Initially, prices remained firm amid an increase in import costs. Simultaneously, logistics duration increased due to affected US shipping and freight routes amid the decline in Mississippi and Ohio river water levels and delayed shipping routes activities through the Panama Canal. However, during the mid-quarter, the price trend fluctuated and showcased bearish movement as supply improved and prices dropped amid a rise in inflation and declined demand for acidity regulators from the food sector. Towards the end of Q3, prices rose amid the occurrence of Hurricane Idalia on August 30, 2023, which made landfall and caused a hindrance in supply rates. Simultaneously, exporters tightened their supply rates due to stressed production rates amid limited availability of feedstock Benzene supplies because of upstream Crude Oil production cuts by OPEC+ and Russia. Conclusively, Succinic Acid prices in the USA witnessed USD 1962/MT at the end of Q3 of 2023.
Asia
In the Asian region, Succinic Acid prices showcased mixed sentiments during the 3rd quarter of 2023. Initially, prices were stagnant due to the stable demand-supply dynamics. Disruption in supply chain activities increased the logistics duration, and the orders were moderately low from the food sector at that time amid reduced consumption rates of acidity regulators. However, prices declined during the mid-quarter amid a decline in orders from international buyers due to sluggish demand for acidity regulators from the food sector. Towards the end of the quarter, prices surged noticeably. The availability inventory levels were inadequate as the production and supply rates were affected due to the occurrence of typhoon Saola in Southern China on September 2, 2023. The occurrence of regional storms and typhoons like Doksuri, Saola, and heavy rains stressed the production and supply rates. Simultaneously, the petrochemical manufacturers limited their feedstock Benzene supplies because of upstream Crude Oil production cuts by OPEC+. Meanwhile, buyers and importers started the restocking practices towards the end of Q3 before the Golden Week holidays in Succinic Acid producer China during October 2023. At the end of Q3, 2023, Succinic Acid prices in China and South Korea hovered at USD 1842/MT and 1872/MT, respectively.
Europe
Like the Asian market, the Succinic Acid prices fluctuated in Europe during the Q3 of 2023. At the beginning of the quarter, supply chain disruption due to the El Nino effect increased the logistics duration of Asian imports. Meanwhile, demand remained low from Polyester manufacturers amid sluggish activities in the textile sector. During the mid-quarter, Buyers dropped their orders due to sluggish demand for acidity regulators from the food sector. The high energy prices and hike in bank interest rates by European banks resulted in a decline in demand from buyers, causing a slowdown in the Eurozone growth. Towards the end of the quarter, production rates declined due to weak availability of feedstock Benzene supplies amid Crude Oil production cuts by global refineries. At the same time, supplies remained limited by Asian exporters before the Golden Week holidays in China, and prices soared in the international market. Conclusively, Succinic Acid prices in Italy and the United Kingdom hovered at USD 1987/MT and USD 2007/MT, respectively, at the end of the quarter.
For the Quarter Ending June 2023
North America
The Succinic Acid showcased bearish sentiments in the North American region during Q2 of 2023. At the beginning of the quarter, declined demand from the food sector and Pharma industries raised the inventory levels. During the mid-quarter, output rates rose in producing country with the decline in the feedstock prices and production costs. Consequently, supply rates increased from exporters. It raised the domestic inventory levels. Simultaneously, demand fell for artificial Flavors in the food sector, and inquiries were low from the Polyester industries due to an off-season in the textile industry. Towards the end of the quarter, prices fell amid ample availability of supplies and cautious buying activities by buyers due to a hike in bank interest rates by the Federal Reserve. Simultaneously, end-user consumers cut down their food consumption, which reduced orders for acidity regulators in the food and beverage industry. Meanwhile, the Normalisation in freight costs amid the strengthening of the US Dollar reduced the import prices of Succinic Acid.
APAC
The Succinic Acid price trend oscillated in Asia during Q2 of 2023. Initially, prices fell marginally in key producer China amid moderate demand and declined offtakes from domestic buyers. However, prices were firm in importing countries due to tightened supply rates from exporters. Meanwhile, output rates rose, and trading activities stagnated during the Labour Day holidays. The orders were low from overseas markets during the mid-quarter. It raised the product stocks in key producer China and prices dipped in the market. Simultaneously, the upstream cost pressure declined due to a reduction in feedstock Maleic Anhydride prices amid contractions in upstream Benzene costs. Towards the end of the quarter, production costs plunged again due to a decline in the feedstock Benzene and n-Butanol prices due to sluggish orders from downstream buyers. Consequently, Succinic Acid prices decreased due to feeble inquiries from Polyester producers amid an off-season in the textile sector. Simultaneously, several regional and international importers cut down their food consumption amid rising inflation and surge in food prices, which reduced orders for acidity regulators in the food and beverage industry.
Europe
In Europe, the Succinic Acid shifted sentiments during quarter 2 of 2023. At the beginning of quarter 2, prices rose marginally amid moderate demand and limited supply rates from exporters. However, during the mid-quarter, supply rates improved amid an increase in output rates of international producers. Simultaneously, the decline in production costs due to the contraction in feedstock prices and low consumption rates from the food sector raised the inventory levels. At the same time, inquiries were moderately less from Polyester industries amid off-season in the textile sector, and previous inventories were sufficiently available in the textile industry. Towards the end of the quarter, the hike in bank interest rates by the European Central Bank and the Bank of England to curb rising inflation made domestic buyers conscious while making purchases, and they avoided any unnecessary trading activities. Higher mortgage rates impacted household finances, and end-user consumers cut down their food consumption, which reduced orders for acidity regulators in the food and beverage industry.
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.
For the Quarter Ending March 2022
North America
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.
Asia Pacific
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.
Europe
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.
For the Quarter Ending December 2021
North America
During the fourth quarter of 2021, the Succinic Acid market in the North American region remained firm to buoyed throughout the quarter. Despite the increment in the operational rates at the production sites after the hurricane season, the quotation observed persistent gains amidst the adequate cost support from the upstream Benzene after the crude oil value observed significant gains after the OPEC+ decided to increase the production margins. In addition, the Glycerol-based Succinic Acid production remained subdued amidst the feedstock shortages. Whereas, the demand outlook from the downstream pharmaceutical, cosmetics, and food sector remains healthy amidst the resurgence of COVID and rising global food price index. As a ripple effect, the offers for Succinic Acid witnessed a gradual gain in the producer's quotation during the fourth quarter of 2021.
Asia Pacific
Overall, the Succinic Acid market in the Asia Pacific region witnessed mixed sentiments in the fourth quarter of 2021 and the offers varied differently in various sub-regions in the Asia Pacific. This development is majorly attributed to the supply concern in the Northeast Asian region although it eased in the second half of the quarter. Whereas in India, the suppliers were forced to offers volumes at discounted rates amidst the bearish sentiments in the domestic market. As a ripple effect, the quotation for Succinic Acid dropped persistently in the Indian domestic market despite the high-cost support from the upstream and raw material. Therefore, the Ex-Chennai discussions were plunged to USD 2958 per tonne, during the quarter ending in December.
Europe
During the fourth quarter of 2021, the European market sentiments for Succinic Acid remained buoyed amidst the tight supply in the region. Whereas the ongoing power crunch in Europe amidst the shortage of natural gas in response forced the producers to curtail the operational rates at the European domestic market. Whereas high charges of electricity pass on the cost support to the production cost of Succinic Acid. Whereas the demand remained buoyed throughout the quarter from the downstream cosmetic, pharmaceutical, and food sectors. As a ripple effect, of healthy demand and tight supply, the offers for Succinic Acid in the European domestic market remained buoyed throughout the quarter.
