For the Quarter Ending March 2025
North America
Prices for Tartaric Acid in the U.S. experienced a consistent decline throughout Q1 2025, impacted by a combination of economic challenges, seasonal disruptions, and geopolitical uncertainties. In January, weaker consumer confidence, compounded by severe winter storms, slowed downstream demand in the food and beverage sectors, while also disrupting logistics. Meanwhile, pre-emptive stockpiling—driven by tariff concerns and seasonal purchasing cycles—contributed to an oversupply in the market.
As the quarter progressed, February saw further price erosion, largely due to increased export availability from China, spurred by post-holiday production recovery. Additionally, lower transpacific freight rates helped sustain inbound supply. However, despite these logistical improvements, soft demand persisted, driven by economic caution, inflationary pressures, and hesitancy in ordering due to ongoing tariff uncertainties.
By March, the market conditions worsened further as elevated inventories, limited purchasing activity, and the impact of President Trump's tariff hike on Chinese imports added to the growing market uncertainty. The weakened U.S. dollar also increased the cost pressure on imports, discouraging restocking efforts among buyers. As a result, sellers had to resort to aggressive price reductions in order to offload surplus stock, exacerbating the downward price trend.
Throughout the quarter, market sentiment remained subdued, with no strong recovery in demand, leading to a continued downward pricing momentum for Tartaric Acid.
Asia Pacific
In Q1 2025, the Tartaric Acid market in China experienced notable price movements, influenced by supply and demand shifts. In January, prices surged due to strong demand from the food and beverage industry, especially for wine production during the New Year season. Simultaneously, production was hindered by the Lunar New Year holiday, which led to supply tightness. Exporters also ramped up shipments in anticipation of potential tariff changes, further tightening the supply and driving prices upward. By February, prices began to stabilize as supply chains recovered post-holiday, and manufacturing resumed at full capacity. However, demand softened slightly due to seasonal declines in wine production and slower growth in other downstream sectors. Despite this, the market saw slight upward pressure as exporters turned more toward local markets, driven by favorable domestic consumption trends. By March, prices picked up again due to continued demand from both local manufacturers and international buyers, especially in anticipation of higher consumption in the months ahead. Overall, Q1 2025 saw moderate price increases in the Tartaric Acid market, driven by fluctuating demand and supply constraints.
Europe
In Q1 2025, the German tartaric acid market faced a consistent decline, influenced by weakened demand and broader economic pressures. The downward trend began in January, fueled by inflation, political uncertainty ahead of national elections, and reduced consumer spending. These factors affected key sectors like food and beverage and wine production, key drivers of tartaric acid consumption. The anticipation of U.S. tariffs on Chinese goods further led to increased competition, as Chinese suppliers targeted Europe, driving prices lower. By February, the market became oversupplied due to inventory buildup, aided by a strong Euro and falling freight rates on Asia-Europe routes, which made imports more cost-effective. The Lunar New Year stockpiling exacerbated this glut, while demand remained subdued. In March, favorable import conditions and healthy shipping capacity kept the market oversupplied, with demand still low as buyers focused on clearing excess inventory. Despite some port congestion, the low landed costs supported the soft pricing environment. Throughout Q1, cautious procurement strategies and weak sentiment continued to pressure tartaric acid prices in Germany.
For the Quarter Ending December 2024
North America
In Q4 2024, the U.S. Tartaric acid market experienced notable fluctuations, influenced by a blend of economic factors and shifting market dynamics. In October, prices declined due to ongoing economic uncertainty, inflation concerns, and a dip in consumer demand. Business and consumer hesitation, coupled with external disruptions like hurricanes and labor strikes, pressured prices downward as companies sought to stimulate sales.
November continued the downward trend, with demand weakening further. The easing of inflationary pressures, along with the appreciation of the U.S. dollar, made imports more affordable, contributing to a decrease in prices. Additionally, the resolution of supply chain disruptions, combined with healthy inventories, helped stabilize prices despite the demand slowdown. In December, however, the market saw a rebound in Tartaric acid prices. This uptick was driven by robust demand, proactive purchasing, and the easing of interest rates, which bolstered consumer confidence. Concerns over potential supply disruptions, including strikes and tariff increases on Chinese imports, led to increased stockpiling as businesses braced for higher future costs, further pushing prices upward.
Overall, Q4 2024 saw a fluctuating market for Tartaric acid, with declining prices early in the quarter followed by a rebound in December, spurred by a combination of demand, strategic purchasing, and supply chain concerns.
Asia Pacific
In Q4 2024, Tartaric acid prices in China experienced notable volatility, influenced by a range of market factors. October saw a significant decline in prices, driven by weak domestic demand, an oversupply of stock, and fierce competition among suppliers. External geopolitical uncertainties, particularly surrounding the U.S. elections and growing protectionist policies, further dampened international demand, adding downward pressure to the market. The trend continued in November, with sluggish domestic demand, high distributor inventories, and weak global sales further exacerbating price declines. Tariff concerns also contributed to the market's challenges. The fall in raw material and crude oil prices led to reduced production costs, enabling suppliers to lower prices to maintain competitiveness. However, December marked a shift in the market dynamics, as prices rebounded sharply. This was driven by strong demand from the food, pharmaceutical and healthcare sectors. Proactive stockpiling ahead of the Chinese Lunar New Year, along with a weaker yuan that made exports more affordable, further stimulated market activity and pushed prices higher. Overall, the Q4 market for Tartaric acid in China saw a sharp drop in prices followed by a recovery, shaped by fluctuating domestic demand, export activity, and adjustments in production costs.
Europe
In Q4 2024, the Tartaric acid market in Germany experienced fluctuating price trends, influenced by a blend of economic pressures and logistical factors. October saw a decline in prices, driven by weaker consumer demand, exacerbated by inflation concerns. A sharp 60% drop in container shipping costs on Asia-Europe routes helped ease logistics challenges, allowing businesses to adjust their strategies and maintain steady supply levels, which contributed to stabilizing prices. In November, the downward trend continued as demand remained sluggish and inflationary pressures eased. Germany's economic slowdown, coupled with a 1.9% drop in energy prices, added to the subdued market conditions. With inventories well-stocked, suppliers were able to offer more competitive pricing, reinforcing the price decline. By December, however, the market saw a reversal, with prices rising due to increased demand from key sectors and logistical challenges ahead of the Chinese Lunar New Year. The weakening Euro, combined with congestion at European ports, added cost pressures, pushing Tartaric acid prices higher. Overall, Q4 2024 was characterized by a blend of price reductions early in the quarter, followed by a rise in December driven by demand recovery and supply chain constraints.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the North American market for Tartaric acid experienced a mixed performance, marked by significant price fluctuations, particularly in the USA. The quarter commenced with a surge in prices that continued until mid-quarter but ultimately gave way to a decline as it neared its end.
The early increase in prices was driven by several key factors. A notable contributor was rising consumer optimism regarding business conditions, which positively impacted demand for Tartaric acid. Additionally, supply chain disruptions played a critical role; blank sailings resulting from ships rerouted around the Cape of Good Hope (COGH) due to severe congestion at major ports in both Asia and North America limited the availability of Tartaric acid, further driving up prices. However, as the quarter advanced into September, prices began to decrease. This decline was largely attributed to a downturn in consumer demand, which was influenced by ongoing economic uncertainties. The political landscape, particularly the impending presidential election in November, caused consumers to adopt more cautious spending habits. Furthermore, concerns about potential tariff increases on Chinese imports contributed to a more pessimistic market outlook, placing additional downward pressure on Tartaric acid prices.
By the end of the quarter, the price settled at USD 2,210 per metric ton for L+ Tartaric Acid on a CFR New York basis. This figure highlights the complex interplay of factors influencing the market, including consumer sentiment, supply chain disruptions, and prevailing economic conditions.
Asia Pacific
In Q3 2024, the pricing landscape for Tartaric acid in the APAC region exhibited a mixed trajectory influenced by several significant factors. In July and August, prices saw an upward trend, driven by robust global demand, particularly fueled by strong export activities from Asia to key markets such as North America and Europe. This surge in demand was partially attributed to proactive measures taken by foreign importers, who placed larger orders to mitigate potential shortages. However, as September approached, prices began to decline due to a combination of factors. A notable decrease in demand occurred as global economic uncertainties undermined consumer confidence, leading to a slowdown in purchasing activity. This decline was further compounded by heightened competition within the pharmaceutical sector, which intensified pricing pressures and compelled suppliers to reduce their prices in order to remain competitive. As Q3 drew to a close, Tartaric Acid prices in China settled at USD 2,060 per metric ton for L+ Tartaric Acid on an FOB Shanghai basis, marking the quarter's ending price. This final figure reflects the complex interplay of demand dynamics and competitive market forces that characterized the Tartaric acid market throughout the quarter.
Europe
In Q3 2024, the European market for Tartaric acid displayed a mixed trend, shaped by a variety of interconnected factors. Prices initially rose until mid-quarter, bolstered by steady demand from end-users, which provided a solid foundation for price growth. The easing of inflation in Germany to 2% annually also played a crucial role, alleviating some financial pressures on consumers and enhancing their purchasing power. This improvement positively affected the demand for pharmaceuticals, including Tartaric acid. However, as September approached, prices began to decline significantly. A key factor behind this downturn was a marked drop in demand, representing the most rapid decline seen in recent months. In response to this weakening demand, market participants reacted by cutting prices in an effort to stimulate sales, which further accelerated the downward trend in Tartaric acid prices. As Q3 2024 comes to a close, the price of L+ Tartaric Acid-CFR Hamburg in Germany is recorded at USD 2,155 per metric ton. This price point highlights the challenges faced in the market, including fluctuations in demand and the broader economic conditions impacting pricing dynamics.
For the Quarter Ending June 2024
North America
In Q2 2024, Tartaric Acid pricing in North America exhibited a mixed trajectory influenced by various market factors. The quarter began with rising prices, followed by a decrease in the middle, and concluded with another increase. Market conditions within the USA played a pivotal role, with consumer sentiment and economic indicators significantly impacting demand and prices.
In April, prices declined as overall business activity in the domestic market contracted, driven by a reduction in new orders due to consumer reluctance to spend amidst sluggish economic conditions. The Federal Reserve's decision to maintain high interest rates aimed at curbing inflation inadvertently eroded consumer purchasing power, tempering overall demand. However, in the middle of the quarter, prices rose, attributed to a continued improvement in consumer demand in the USA. U.S. consumer confidence unexpectedly improved in May after three consecutive months of decline, buoyed by optimism about the labor market. Despite this temporary improvement, prices fell again towards the end of the quarter due to weaker-than-anticipated demand, marked by a significant decrease in fresh orders and a contraction in the order backlog. These occurrences, coupled with diminishing new product orders and reduced expenditure, indicated a gradual economic deceleration.
A year-over-year comparison showed a modest 1% decline, reflecting a slight reduction in demand and stable supply conditions. From the previous quarter in 2024, prices decreased by 2%, underscoring a gradual economic slowdown and cautious consumer behavior. The latest quarter-ending price for L+ Tartaric Acid in the USA settled at USD 2180/MT CFR New York.
APAC
In Q2 2024, the Tartaric Acid market in the APAC region displayed varied pricing trends, starting with a decrease at the beginning of the quarter, followed by an incline in the middle, and another decline towards the end. In China, which saw the most pronounced price fluctuations, the overall trends reflected the broader APAC sentiment. Several key factors contributed to the price decline in April. Subdued demand from end-user industries, both domestically and internationally, significantly pressured prices. Additionally, ample supply conditions exacerbated the oversupply issue, leading to competitive price reductions as market participants struggled to clear existing stock. Logistical disruptions and rising shipping costs, particularly due to geopolitical tensions, further added to supply chain challenges, diminishing buyer enthusiasm and curbing price stability. However, prices increased in May as steady consumer demand combined with limited domestic supply created a seller-friendly market environment. A decline in China's factory activity indicator in May, driven by a drop in output, indicated a potential reduction in production capacity. This slowdown in manufacturing output further constrained supply, prompting market participants to quote slightly higher prices. Despite this brief improvement, prices fell again in June due to pessimistic market sentiments. Within China's economic environment, companies faced numerous obstacles, including waning consumer demand and escalating financial pressures, which contributed to the downward trend in Tartaric Acid prices. The quarter ended with the price of L+ Tartaric Acid-FOB Shanghai stabilizing at USD 1990/MT, reflecting the ongoing adverse market conditions.
Europe
In Q2 2024, the European Tartaric Acid market experienced fluctuating prices due to complex supply and demand dynamics, consumer sentiment, and broader economic influences. Early in the quarter, prices fell, driven by weak market sentiment. This decline was marked by a sharp drop in new orders and total sales volumes, putting significant downward pressure on prices. Inflationary pressures, heightened by strong energy and food prices, further eroded consumer sentiment and exacerbated the price drop. However, in May, prices saw an uptick as demand from end-user industries such as pharmaceuticals, food, and supplements improved compared to the previous week. Market participants maintained adequate inventories, ensuring stability in the supply chain and enabling a quick response to market needs. Despite this, prices fell again in June due to insufficient genuine demand in the domestic market. Consumers were hesitant to spend money due to ongoing concerns about persistent inflation and high-interest rates, leading downstream sectors to adopt a cautious "wait and see" approach. By the end of the quarter, the price of L+ Tartaric Acid-CFR Hamburg in Germany was USD 2120/MT.
