Citric Acid Prices are Expected to Rise in the US Due to a Lack of Import

USA: The US market for Citric Acid has been steadily growing since the beginning of 2023, following several months of consistently declining prices for the product. Also, costs have risen throughout this month due to a lack of imports of Citric Acid from important exporting nations, primarily China. Citric Acid prices are currently rising in China ahead of the tomato harvest season in the upcoming month. Manufacturers are currently refusing orders because of the unstable and growing pricing, which lowers imports and encourages price growth in the US.

The primary reason behind the steady expansion of the US domestic market was the food industry's continuously high end-user demand. The recent rapid growth and extensive reciprocity of the dollar have been advantageous for the local market that trades products from foreign markets. Since January 2023, China's economy has shown modest signs of development as the country has navigated its second month without Covid Zero regulations. China is also the world's largest exporter of Citric Acid to the US, though the important holiday season did restrain some activity.  Citric Acid prices in the US are also in the higher range due to the arrival of the harvest season. There is competition in the Chinese market, which leads to a halt in export and disrupts the supply chain.

Citric Acid is a crucial component for many different enterprises because of its benefits, particularly in the food and beverage industries. 70% of foods and drinks, 20% of pharmaceuticals, 10% of dietary supplements, and 10% of household products include manufactured Citric Acid, according to reports. Prices increased amid rising demand from end-user industries because of a lack of supplies in the local US market.

According to the ChemAnalyst database, growing demand from end-use industries and a lack of exports from China may cause the price of Citric Acid to rise even more in the coming months. Citric Acid prices have also grown due to a lack of supply and high market demand, which could prolong cargo delays when containers are transferred from one ship to another.