Tartaric Acid Prices Likely to Depreciate in June 2023: A Boon or Bane for the Industry?

Tartaric acid prices have been decreasing in the USA since the beginning of 2023. In June, prices of Tartaric Acid further went down from the previous month. There are a number of factors that have contributed to this decline, including Increased supply, declining demand, and a weakening economy.

The global production of Tartaric acid has increased in recent years, due to new production facilities coming online in China and India. This has led to an increase in the global supply of Tartaric acid, which has put downward pressure on prices. Also, the demand for Tartaric acid has been declining in recent years, due to factors such as the rising popularity of sugar-free and low-carb foods and beverages. This has caused prices to decline. In addition, the decline in Tartaric acid prices is good news for consumers, as it will lead to lower prices for a variety of products, including wine, cheese, and baking goods. It is also good news for businesses that use Tartaric acid in their products, as it will help them to reduce their costs.

The US economy has been weakening in recent months, which has led to a decline in demand for many industrial products, including Tartaric acid which has further influenced the price trajectory negatively. Government policies, such as tariffs or subsidies, could affect the supply and demand for Tartaric acid, which could lead to changes in prices. Also, the fall in the Consumer Price Index (CPI) in June 2023 is a positive sign for the US economy and this also supported the depreciated trajectory for Tartaric acid.

Also, Tartaric acid prices are governed by its raw material Maleic Anhydride prices. The oversupply of maleic anhydride is due to several factors, including the start-up of new production facilities in the US and China. In addition, some manufacturers were unable to sell all their production due to weak demand. The weak demand for maleic anhydride was due to several factors, including the slowdown in the manufacturing sector and the decline in the construction industry which also impacted the Tartaric acid prices in the USA. Furthermore, the cost of shipping maleic anhydride from Asia to the US decreased in June 2023 due to the factors including the weak demand for shipping containers and the decline in fuel prices. The weak demand for shipping containers led to a decrease in the cost of renting or leasing containers, and the decline in fuel prices led to a decrease in the cost of shipping the product.

According to ChemAnalyst, Tartaric acid prices are likely to increase in the upcoming month backed by increased demand from the end user sector. As the demand will increase the suppliers will be propelled to replenish their inventories with fresh supplies likely to keep the market strong.