For the Quarter Ending June 2025
North America
• In April 2025, the Price Index of Tartaric Acid (CFR New York) rose to USD 2185/MT, driven by strong procurement ahead of anticipated U.S. tariff actions targeting Chinese goods.
• The Tartaric Acid spot price increase in April reflected accelerated buying across food, beverage, and pharmaceutical sectors, with downstream players building inventory to hedge against expected trade disruptions.
• Domestic producers maintained stable output, but frontloading activity caused temporary supply tightness, supporting a firm price index level throughout April.
• In May 2025, the Tartaric Acid Price Index inched up to USD 2195/MT, as the implementation of a 145% tariff on Chinese products on April 9 reshaped sourcing strategies and increased landed costs.
• The Tartaric Acid demand outlook remained strong in May, bolstered by steady inflation and optimistic consumer sentiment, prompting continued purchasing despite logistics congestion and longer lead times.
• By June 2025, the Tartaric Acid Price Index declined significantly to USD 1970/MT, as most buyers had already covered their near-term needs and demand momentum slowed sharply.
• Weak transactional activity and sufficient stock levels at the distributor level in June weighed down the product spot price, resulting in a softening market trend.
• Despite the drop in June, no major supply-side disruptions were reported, and tartaric acid production cost trends remained largely unchanged due to stable domestic operations.
• In early July 2025, tartaric acid prices were observed to be declining further, but this is expected to reverse as manufacturers begin securing volumes for Q3.
• The tartaric acid price forecast for July suggests a possible mild recovery, supported by steady to strong demand from core end-use sectors and stable inflation, though cautious spending may limit the extent of gains.
APAC
• The Price Index for Tartaric Acid (FOB Shanghai) rose from USD 2000/MT in April to USD 2038/MT in May due to a tight supply chain and robust product demand outlook across food, pharma, and wine sectors.
• April’s price surge of 6.95% was driven by constrained production, aggressive domestic restocking ahead of maintenance, and export acceleration amid policy uncertainty.
• The tartaric acid spot price faced downward pressure in June, declining sharply to USD 1716/MT, marking a 15.8% drop amid fading international demand and weaker procurement sentiment.
• A stable Tartaric Acid production cost trend in May helped maintain price equilibrium despite subdued export volumes and selective contract fulfillment by producers.
• Weak demand from North America contrasted with steady interest from other global markets, balancing China’s export portfolio and sustaining moderate upward pressure through May.
• In June, falling maleic anhydride prices lowered input costs, encouraging suppliers to cut offers amid growing inventory levels and bearish buyer sentiment.
• Traders adopted a cautious approach in May, avoiding overstocking due to global trade uncertainties and selective purchasing behavior.
• The product demand outlook weakened in June as downstream consumption slowed in food, beverage, and industrial sectors.
• July 2025 prices are likely to increase, driven by renewed overseas buying and anticipated logistical constraints affecting global supply.
• Traders and exporters are expected to hold higher offer levels in July, capitalizing on continued Western demand and favorable margins.
Europe
• In April 2025, the Price Index of tartaric acid rose to USD 2096/MT, driven by tight supply, redirected Chinese shipments due to U.S. tariffs, and increased restocking ahead of summer demand from food and pharma sectors.
• Strengthened purchasing confidence from a dip in Eurozone inflation supported a firmer product demand outlook, with suppliers leveraging momentum to lift product spot prices.
• Buyers anticipated limited Q3 availability and placed forward orders, contributing to a competitive procurement environment and firmer product price forecast.
• In May 2025, the Tartaric Acid Price Index edged up slightly to USD 2125/MT, bolstered by stable demand and cautious inventory replenishment, especially from food and pharmaceutical industries.
• Despite the rise, market sentiment was conservative; buyers closely tracked consumption patterns before making large-volume deals.
• A sharp Price Index drop to USD 1825/MT in June 2025 (down -14.12%) stemmed from improved availability and sellers lowering product spot prices to offload excess stock.
• Buyers delayed fresh purchases in June, expecting further declines amid growing competition and corrections in product production cost trend.
• Tartaric Acid demand remained steady, but oversupply and market fatigue caused significant price corrections, reversing prior Q2 gains.
• For July 2025, the price is likely to increase modestly due to peak-season food and beverage consumption and sustained high landed costs from the ongoing shipping peak.
• Short-term improvements in seasonal demand and continued inventory drawdowns are expected to revive the product demand outlook in early Q3.
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.
FAQs
1. Why did Tartaric Acid prices in the U.S. rise in April and May but fall sharply by June 2025?
The U.S. market experienced an initial price rise in April and May due to aggressive procurement ahead of the 145% tariff on Chinese imports, which took effect on April 9. Buyers across food, beverage, and pharmaceutical sectors rushed to stock up, leading to temporary supply tightness and elevated landed costs. However, by June, the market saw a considerable drop in prices as most downstream players had already secured their near-term needs. With inventories sitting comfortably at distributor levels and transactional activity weakening, the Price Index corrected downward, reflecting a softening demand trend.
2. What were the main drivers of the sharp price decline in the Chinese Tartaric Acid market in June 2025?
In China, Tartaric Acid prices surged in April and May due to constrained output, domestic restocking, and heightened exports under tariff pressure. However, the momentum reversed in June as international demand eased, particularly from North America. This decline was further supported by falling raw material prices—especially maleic anhydride—which reduced production costs and allowed suppliers to offer discounts. Traders became more cautious, avoiding overstocking in the face of global demand uncertainty, which ultimately led to a significant drop in the FOB Shanghai Price Index by 15.8% in June.
3. How did the European Tartaric Acid market respond to global trade disruptions and local demand shifts in Q2 2025?
Europe’s market started the quarter strong, with rising prices in April driven by redirected Chinese cargoes (originally bound for the U.S.) and seasonal restocking from food and pharmaceutical manufacturers. A dip in Eurozone inflation added to purchasing optimism. Prices remained stable in May as demand held up, although buyers began exercising caution and closely monitoring consumption before committing to large volumes. By June, however, the market experienced a steep price correction due to excess availability, delayed buying decisions, and an easing product cost trend. Sellers lowered offers to stay competitive, leading to a notable Price Index decline.
4. What is the outlook for Tartaric Acid prices in July 2025 across key markets?
A moderate price recovery is anticipated across all major regions. In the U.S., although early July saw continued declines, manufacturers are expected to resume forward buying for Q3, potentially firming the market. China may witness upward movement supported by renewed overseas demand and lean inventories, especially as traders lift offer levels to capitalize on Western interest. In Europe, price gains may be modest, driven by seasonal consumption in the food and beverage industries and sustained high logistics costs. While recovery is expected, cautious procurement could cap the extent of the rebound.
