US Malic Acid Prices Likely to Surge Amid Healthy Demand and Constraint Supply

USA:  In the US domestic market, a slight increase in the price of Malic Acid is anticipated during the first week of February 2023. Malic Acid is a common acidity regulator used in baking powder and drinks with rigorous purity requirements. It is also used in the production of wheat tortillas as a food preservative and leavening agent. Prices for Malic Acid are expected to rise due to increasing demand in the US market.

The primary factor influencing the price trend of Malic Acid in the US over the last month has been the decline in the cost of Maleic Anhydride, one of the upstream components, as well as other elements, most likely as a result of weak demand from consumers. In light of the Lunar New Year in China and the facility being closed, stable demand with less supply was observed in the local Maleic Anhydride market at the end of January 2023. Additionally, the merchants had enormous stocks, and primarily the US imports from China, and the import was also high. Moreover, the prices were stable till the last week of January, but it is gaining a slight increase in China's domestic market due to changes in the upstream market for pure benzene in the first week of February, affecting the export and the price of the Malic Acid. The sudden increase in demand from the end-user industries and the focus on fresh stocks has also supported the slight increase during the initial phase of this month.

ChemAnalyst predicts that the price will increase due to the Malic Acid tight supply from the major exporting country, China. In addition, with sufficient demand and inclining raw material costs, the price of Malic Acid would continue to increase, and the result of a sizable volume of inventory kept by the retailers in the domestic market would further escalate the price.