US Malic Acid Prices Likely to Show Pessimistic Trend in Early Q2 of 2023

In the US market, the price of Malic Acid showcased a decreased trend in the month of March 2023, and it is anticipated to remain the same in the upcoming months. The key reason impacting the price trend of Malic Acid in the United States over the previous month has been a decrease in the cost of Maleic Anhydride and Benzene, the upstream components, as well as other constituents, most likely due to weak consumer demand.

The market participants have kept the factory quotations for Malic Acid steady due to the weak demand from the end-user and consumer sectors. Furthermore, the feedstock Benzene and Maleic Anhydride prices have also been witnessed to remain on the lower end throughout the month of March. The domestic, as well as the overseas buyers, were mainly on the sidelines. Additionally, the trading atmosphere was also recorded to be a stalemate. As a result of falling energy prices, Benzene and Maleic Anhydride prices have fallen, which has reduced production costs for Malic Acid. Also, according to industry sources, surplus supplies were available, which weakened the Malic Acid market. Prices for Styrene Monomers in the US market fell dramatically along with the price of Benzene. While there were enough stockpiles to meet domestic demand and demand from the end-user manufacturing units was bearish, as a result, Malic Acid prices declined. On the other side, when domestic mortgage rates weakened consumer demand, the housing sector of the US market experienced a collapse. Malic Acid costs also decreased as a result of fewer exports from exporting nations, which also resulted in fewer price agreements between local merchants for Malic Acid in the future.

ChemAnalyst predicts that the price will likely remain stable for the Malic Acid. Also, stable feed prices in the domestic and international markets are likely to keep the market feeble.