For the Quarter Ending June 2022
North America
In the second quarter of 2022, the Tartaric acid market in the North American region exhibited stagnant sentiments due to consistent offtakes in the end-user industries. Supply constraints already in the US in April were exacerbated by the COVID comeback in China's commercial hubs, which significantly restricted the import of Tartaric Acid into the country. The rising inflation in the US, the geopolitical unrest in Russia and Ukraine, and the highly erratic oil prices all contributed to domestic traders' and buyers' worries about the high costs of food additives and raw materials throughout the quarter. Over time, demand from the region's downstream food and beverage industries and confectionaries remained high.
APAC
In the second quarter of 2022, the price trend for Tartaric Acid in the Asia Pacific region showed a downward trajectory. The covid outbreak effectively delayed product delivery in foreign markets because China is the world's largest supplier of food additives. This led to rising freight costs, supply shortages, and port bottlenecks. Supply chains were strained due to China's zero-tolerance laws and limitations, which continued to impede manufacturing and logistics and caused havoc with shipping additives and raw materials. The restrictions caused disruptions in the logistics and transportation networks, which considerably slowed the movement of commodities across the nation and to large international shipping ports. Due to adequate stocks held by suppliers and purchasers in the Chinese and Indian markets, offtakes from the downstream food and beverage sectors remained stable throughout the quarter.
Europe
Despite the geopolitical conflict between Russia and Ukraine, the domestic market trend for Tartaric Acid in the European region continued to strengthen during the second quarter of 2022. Although the crisis increased transportation costs and slowed the flow of goods into Europe, it made it more difficult for exporting countries to conduct business. The entire quarter saw robust offtakes from end-user sectors, such as the food and beverage industries, due to suppliers having enough inventory to service all domestic demand.
For the Quarter Ending March 2022
North America
Prices of Tartaric Acid surged in the North American market during the first quarter of 2022 on the back of firm downstream demand. As the consumption of Tartaric Acid increased in food & beverage, wine, cosmetic, and pharma industries, so does its demand. Furthermore, skyrocketed crude oil prices, enhanced logistic charges, congested ports, and labor shortage amidst Russia-Ukraine war tensions largely impacted the market of Tartaric Acid in Q1. The prices of Tartaric Acid at CFR New York were USD 4295/MT in January, which increased to USD 4425/MT in February and registered a change of almost 3%.
APAC
The Asia-Pacific region witnessed an upsurge in the prices of Tartaric Acid during Q1 of 2022, backed by solid demand from end-user industries. The enhanced popularity of bakeries and convenience food was the prime factor that propelled the demand for Tartaric Acid. Besides, increased wine consumption further added to the already augmented offtake of Tartaric Acid. Furthermore, fuelled energy prices and freight charges pushed up the prices of Tartaric Acid upwards. Conclusively, the evaluated prices of Tartaric Acid in the Chinese market at FOB Qingdao were USD 2820/MT in January, which increased to USD 2950/MT in February, and then to USD 3010/MT in March.
Europe
Tartaric Acid prices soared in the European countries during the 1st quarter of 2022 on account of increased downstream demand. As the European Union is the leading wine producer globally as per USDA, the consumption of Tartaric Acid soared in the region. Furthermore, in the United Kingdom, anti-dumping duty was imposed in 2018 on imports of Tartaric Acid from the People’s Republic of China, which was further extended for the next five years, resulting in the rise in Tartaric Acid values. In addition, propelled crude oil prices and enhanced freight charges further contributed to the price hike of Tartaric Acid by nearly 4% in Europe.
For the Quarter Ending December 2021
North America
The US domestic market of Tartaric Acid demonstrated raised sentiments in the 4th quarter of 2021, backed by the strong consumption from the downstream food and beverages sector. The strong demand from various end-user industries, including pharmaceuticals, construction, etc., kept the prices of Tartaric Acid in the upward momentum. As the manufacturers in the United States mainly rely upon supplies from China and other East Asian economies, continued cost pressures, disruption, and delays in containerized shipping, hindered the prices and production of several goods, including Tartaric Acid, across the North American region.
Asia
During the fourth quarter of 2021, the prices of Tartaric acid continued to hop upwards in the Asian market. In terms of demand, strong offtakes from the downstream industries, including pharmaceuticals, food and beverages, cosmetics, construction, and others, were observed during this quarter across the Asia Pacific region. The increased costs of raw materials, high freight and energy prices, container shortages, and the sudden spread of the Omicron variant are some of the factors that contributed to the price rise in the domestic market of both India and China. The market competitiveness amongst the manufacturers soared drastically in anticipation to capture a larger market share and gain better netbacks amidst the inventory destock in December.
Europe
In Q4 2021, the surged prices of raw materials, soaring freight costs, port congestion, and prolonged supply disruptions led the prices of Tartaric Acid in the upward trajectory across the European region. An increase in the container freight charges added to the production costs of several products, including Tartaric Acid in the country. The labor shortages continued on and off of coronavirus restrictions across port regions, and the emergence of the Omicron variant have exacerbated the market trend of Tartaric Acid in the European region.
For the Quarter Ending September 2021
North America
During the third quarter of 2021, the Tartaric Acid market in North America witnessed an upward rally supported by improvement in economic activities. Moreover, with the vaccination rate reaching its peak in Q3, business activity steadily recuperated, thus boosting the demand for Tartaric Acid from the end user industries which include food and beverage, pharmaceutical, cosmetics, construction etc. Additionally, spike in the raw material values also influenced the price trend of Tartaric Acid across the region.
Asia
In overall Asian Market, a continuous demand for Tartaric Acid from the downstream food industry provided a prominent increment in its market values during the third quarter of 2021. In India and China, the Tartaric acid market sentiments remained high throughout the quarter and its prices rose significantly in this timeframe. However, key players were optimising their production rates on cautiousness over mounting inventories at times of high volatility. Additionally, several factors such as energy crisis in China as well as congestion on its several ports that resulted into the supply chain disruption also influenced the price trend of Tartaric Acid in the region.
Europe
In Europe, high raw material cost and strong demand from the downstream food and beverage sector continued to drive the market dynamics throughout the third quarter of 2021. As per the market players, fluctuations in global trade and foreign currency value, and ultimately affected the demand, commodity prices and input costs. In addition, higher production values and logistical issues further sent ripples to the values of Tartaric Acid in the meantime.
For the Quarter Ending June 2021
North America
During the second quarter of 2021, supplies were further constrained as the operations in several facilities remained shunned amidst the limited availability of feedstock Maleic Acid. Demand was surged for the manufacturing of wine and other derivatives whereas offtakes remained consistent from the pharmaceutical sector, as a repercussion of tightness in the overall North American market. Prices of Tartaric Acid remained in up stride during the second quarter of 2021.
Asia Pacific
Feeble offtakes of upstream Maleic Anhydride from the downstream unsaturated polyether resins (UPR) industries, kept the feedstock inventories ample to meet the demand of Tartaric Acid in the Asia Pacific market. Supplies remained sufficient to cater the end use demand with significant level of the inventories of Malic Acid, however due to the rising inflation in the Chinese prices of Tartaric Acid, prices observed a marginal uptrend with Ex-Work Shanghai prices settling at USD 2280 per tonne and USD 2000 per tonne for L+ and DL grade in April. Whereas the enquiries from the Indian market were stable as the offtakes from the food additives and pharmaceutical sector remained consistent.
Europe
During the second quarter of 2021, supply in the European market of Tartaric Acid remained extremely short during the first half of the quarter due to limited availability of the key feedstock Malic Acid. It is anticipated that the supply tightness is likely to continue till next quarter as a major upstream producer declared turnaround in June. Demand bolstered from downstream food additives and pharmaceutical sector. As a ripple effect prices remains buoyed throughout the quarter in European market.
For the Quarter Ending March 2021
North America
The Tartaric Acid market in the North American region was severely impacted during the first quarter of 2021 due to the supply shortages in the key feedstock plants which disrupted the downstream supply chains due to extreme weather conditions in the Texas and nearby Gulf region. The winter storm further forced the regional Tartaric Acid plants to shut down or reduced their production for a couple of weeks. Demand surge from the pharma sector on back of supply shortages raised the regional offers by a significant percentage.
Asia-Pacific (APAC)
During the first quarter of 2021, Tartaric Acid supplies were balanced due to low inventory levels in the first half of the quarter and turnaround at several regional upstream plants with the arrival of Chinese lunar New Year holidays; however, shortage eased by the end of the Q1 as plants restarted with efficient output. Demand surged in the first quarter owing to well supported demand from the downstream pharmaceutical sector. The shortage in supply drove the FOB Shanghai prices for April deliveries to USD 2030 per tonne for DL Tartaric Acid.
Europe
Supplies of the Tartaric Acid remained tight since the previous quarter with persistent supply crunch noted during the first quarter of 2021. Reduced imports of the key feedstock from overseas and production constraints amid the severe weather conditions in US disrupted the European Tartaric Acid supplies. Demand strengthened from the downstream pharmaceutical sector.
For the Quarter Ending December 2020
Asia
The demand for Tartaric Acid saw a slight increment in Q4 as compared to Q3 of 2020 as the economic activities to revive and curb the losses during the peak virus period. China emerged as the largest exporter of Tartaric Acid whereas India which is continuously expanding its roots to expand the foothold in the pharmaceutical industry, turned out as the largest importer. Consequently, prices of Tartaric Acid remained in the range of USD 4000-4500 per MT FOB China in the final quarter. Furthermore, In November, demand for Tartaric Acid FROM India took another upward toll weighed by its increased demand from food and beverage industry during the festive season.
Europe
During the fourth quarter of 2020, Mexico emerged as the largest importer for Tartaric Acid in Europe owing to the consistent demand of Tartaric Acid from pharma, chemical industries as they are increasing its consumption due to its properties like less susceptible to microorganism during fermentation. The demand was the highest in October but as the fears of new Coronavirus strain emerged, Europe imposed lockdown by the start of November in several countries like France, Germany and Belgium thereby reporting a slump in the demand of Tartaric Acid. Thus, market sentiments for Tartaric Acid wandered yet again due to new mutant coronavirus which laid a downward pressure upon its prices as well.
North America
Demand for Tartaric Acid was highest in the final quarter of 2020 due to the optimism that prevailed from the roll out of Coronavirus vaccine. There was an increase in demand in the month of November as compared to October amidst the revival in economy from the upward crawl in crude oil prices. The largest importer of Tartaric Acid in North America were New York and Los Angeles in which most of companies were based on pharma and chemicals indicating a high demand-flow from these sectors.
