For the Quarter Ending March 2022
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%.
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.
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
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.
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.
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.
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.
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.
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.