For the Quarter Ending September 2024
North America
In Q3 2024, the North American Citric Acid market witnessed a significant decline in prices, driven by a confluence of factors. A persistent oversupply in the market, combined with sluggish demand both domestically and internationally, resulted in a substantial imbalance. As manufacturers adjusted to the reduced demand, they curtailed production, leading to the first contraction in supplier lead times in three months. This cautious approach from end-users further dampened buying interest, solidifying a bearish market sentiment.
Moreover, the Corn market, a crucial input for Citric Acid production, experienced its own downturn, adding additional pressure on prices. Disruptions in the U.S. market, notably due to plant shutdowns triggered by hurricanes, temporarily impacted operations, compounding the challenges faced by manufacturers.
Overall, the quarterly trend was decidedly negative, with Citric Acid prices decreasing by 2% compared to the previous quarter. A stark contrast was observed between the first and second halves of the quarter, with prices plummeting by 6%. By the end of the quarter, the price for Citric Acid Anhydrous CFR New York settled at USD 890/MT, reflecting a prevailing trend of decreasing market sentiment.
Asia Pacific
In Q3 2024, the APAC region experienced a significant decline in Citric Acid prices, driven by a confluence of market factors. Notably, an oversupply of Citric Acid, coupled with reduced demand and negative economic indicators, set the stage for a downturn. Currency depreciation across key economies contributed to rising import costs, while persistent supply chain disruptions and weakened consumer sentiment compounded the challenges for producers.
China, as a major player in the Citric Acid market, experienced the most pronounced price fluctuations. The region faced escalating input costs, excessive stockpiles, and a sluggish demand environment, resulting in a notable price adjustment. This quarter marked a -3% price decrease compared to the previous quarter and a more pronounced -9% drop between the first and second halves of the year. The closing price for Citric Acid Anhydrous in China reached USD 675/MT FOB Shanghai, highlighting the pervasive downward pricing pressure.
Additionally, plant shutdowns and operational disruptions further exacerbated market challenges, reinforcing the trend of decreasing prices. Collectively, these factors contributed to a consistent decline in Citric Acid prices throughout Q3 2024, reflecting the ongoing complexities within the APAC market.
Europe
The third quarter of 2024 for citric acid in the European market was marked by a significant price decline, driven by a confluence of factors that reshaped market dynamics. A notable oversupply coupled with reduced demand from downstream sectors contributed to the downturn. Global supply chain challenges continued to affect production and distribution, exacerbating the price decline.
In particular, Germany experienced the most pronounced price fluctuations, serving as a barometer for overall market sentiment. Factors such as reduced production costs, high inventory levels, and cautious consumer behavior further fueled the downward trend in prices. Seasonal influences also played a role, impacting the pricing landscape and prompting correlations with other market variables.
When comparing this quarter to the same period last year, prices revealed a marked decrease, reflective of prevailing market conditions. Quarter-on-quarter analysis showed stability in prices, yet a notable decline of 6% was observed between the first and second halves of the quarter. The quarter-ending price of USD 880/MT for citric acid anhydrous CFR Hamburg in Germany highlighted the ongoing downward trend. Additionally, disruptions and plant shutdowns during the quarter further underscored the challenges facing the citric acid pricing environment.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Citric Acid market saw stable pricing driven by key factors. The consistent supply from major exporting regions balanced supply and demand. Despite disruptions like the Baltimore Bridge collapse and Panama Canal drought, the supply chain remained resilient. Steady input costs and proactive inventory management by suppliers supported market stability.
In the USA, Citric Acid prices experienced notable changes due to various influences. The early peak shipping season increased freight rates and container shortages, affecting overall costs. Geopolitical tensions and environmental challenges, such as low water levels in key shipping routes, necessitated alternative logistics, adding complexity to price stabilization.
Throughout the quarter, the USA Citric Acid market exhibited consistent trends with slight seasonal fluctuations. Price changes aligned with broader market dynamics, showing a moderate 0.50% average quarterly increase, indicating a stable yet cautiously optimistic pricing environment. Price parity was maintained between the two halves of the quarter, reflecting balanced market sentiment. By the end of Q2 2024, Citric Acid prices in the USA were at USD 898/MT CFR New York, underscoring a stable market amidst various challenges and marking a steady trajectory for the sector in North America.
Asia Pacific
In Q2 2024, the APAC region experienced a significant increase in Citric Acid prices, driven by strong demand and limited supply. Key factors included rising raw material costs, particularly corn, which elevated production expenses. Geopolitical tensions and logistical issues, such as the Panama Canal drought and disruptions from the Houthis' campaign against Israel in Gaza, further strained the supply chain. Additionally, the strengthening of the Chinese yuan against the US dollar incentivized Chinese exporters to increase shipments, tightening domestic supplies and pushing prices higher.
In South Korea, the most pronounced price changes were observed, with a consistent upward trend influenced by seasonal factors and increased production costs during the warmer months. Prices rose by 0.66% on average, with a further 1% increase in the latter half of the quarter, ending at USD 780/MT for Citric Acid Anhydrous CFR Busan. This trend was largely driven by China's market dynamics, impacting the broader APAC region.
April saw heightened trading activity due to positive manufacturing sentiments and strategic inventory management. The depreciation of the Chinese yuan boosted the competitiveness of Chinese exports, while reduced logistical expenses and proactive bulk purchasing ahead of the May Day holiday contributed to market stability. In May, prices surged due to the yuan's appreciation, increased domestic and international demand, and geopolitical tensions. Maintenance shutdowns at manufacturing plants and rising corn prices further tightened supply and drove prices up.
However, in June, prices declined as the yuan depreciated, demand reduced, and geopolitical tensions disrupted trade, leading to an oversupply. Scheduled shutdowns at manufacturing plants and logistical challenges also pressured inventory management, especially for heat-sensitive powdered Citric Acid.
Europe
In Q2 2024, the European citric acid market demonstrated stability, driven by steady supply dynamics and seasonal demand fluctuations. Consistent production rates, minimal disruptions, and efficient inventory management among key players were crucial in maintaining this stability. Additionally, reduced freight charges and the absence of significant plant shutdowns supported the stable pricing environment. A consistent influx of citric acid from global suppliers met regional demand effectively.
Germany, in particular, experienced notable price changes, reflecting a stable yet slightly dynamic market environment. The gradual alignment of supply and demand characterized the overall trend. Increased consumption by the food and beverage industry during the summer months helped maintain demand levels. Despite these seasonal fluctuations, prices remained stable, with minimal percentage change from the previous quarter.
Specifically, price changes between the first and second halves of the quarter were negligible at 0%, indicating a well-balanced market. The quarter-ending price for Citric Acid Anhydrous CFR Hamburg was USD 910/MT, with an average quarterly increase of 0.56%. This pricing environment underscores a stable sentiment, supported by consistent production, minimal disruptions, and balanced supply-demand dynamics in both Germany and the broader European region.
For the Quarter Ending March 2024
North America
In Q1 2024, the pricing environment for Citric acid in North America was characterized by fluctuations and significant price increases. The latest quarter-ending price for Citric acid in the US was USD 885/MT CFR New York, showing an average quarterly increase of 0.58%.
The USA experienced rising prices due to various factors: production slowdowns, maintenance shutdowns, export restrictions, increased freight charges, and low inventories. Dependence on Chinese imports worsened due to disruptions in Chinese provinces during Lunar New Year, constraining supplies and raising prices. Post-Lunar New Year, global demand for Citric acid surged, influenced by geopolitical tensions, trade disruptions, and increased container freight rates, causing another price hike in March. The US, a major importer, felt these effects, adjusting prices to remain competitive amid limited inventories and delayed supplies from exporting regions. Concerns over potential disruptions in the Mississippi River due to weather further intensified inquiries and pushed prices up.
The price of raw materials also contributed to the hike. Despite a slight decrease at the start of Q1, the Citric acid market eventually saw falling prices and unified sentiment, partly due to strategic actions by the USA influencing global prices. Factors like reduced raw material costs and declining manufacturing activity in the USA led to lower prices as downstream enterprises adjusted procurement strategies.
Asia Pacific
In the first quarter of 2024, the pricing of Citric acid in the Asia-Pacific (APAC) region remained mostly stable, with some fluctuations in specific countries. In conclusion, the latest quarter-ending price for Citric acid in China was USD 720/MT FOB Shanghai with an average quarterly incline of 0.02%. The demand for Citric acid from industries like pharmaceuticals and food processing stayed consistent, supporting prices and maintaining a positive market sentiment. In February 2024, prices increased due to higher demand and low inventories, exacerbated by production slowdowns during the Chinese Lunar New Year and Spring Festival. Rising freight costs and logistical challenges further reduced availability.
After the holidays, there was a surge in purchasing both domestically and internationally, driven by consumer confidence and favorable sentiment, with traders benefiting from the Chinese currency depreciation against the USD. Suppliers adjusted prices to match heightened demand, and traders secured bulk orders in anticipation of shortages. Additionally, the increase in raw material prices also contributed to the rise in Citric acid prices. In March, sustained demand from Chinese end-users led to higher prices, prompting increased production. When the market reopened after the holidays, prices surged due to the production ramp-up to meet domestic demand.
The pricing trends for Citric acid in the APAC region in the first quarter of 2024 were generally stable, although prices did decrease at the start of the quarter. This drop was influenced by year-end destocking activities from the previous month, which had a notable impact on market dynamics. Additionally, weakened demand downstream and sufficient inventories put pressure on Citric acid pricing. In the Chinese market specifically, prices also saw a decline due to weak demand.
Europe
Throughout the first quarter of 2024, the European market for Citric acid experienced a fluctuating landscape influenced by a myriad of factors. Ending the quarter at USD 895/MT CFR Hamburg in Germany, Citric acid prices saw a quarterly decline of 1.24%.
This decline was part of a broader downturn in the market, marked by reduced prices and a unified market sentiment, largely steered by Germany's strategic decisions. As a key importer, Germany's measures to uphold its global competitiveness, including adjusting pricing strategies, reverberated throughout the market. However, this was not the sole driver of market trends. The decrease in the cost of raw material in Germany, fueled by weakened demand projections and reduced manufacturing activity in the Eurozone, also played a significant role. The market responded to these dynamics by adapting pricing strategies and actively reducing inventories to avoid surplus stockpiles. Despite these efforts, challenges arose, such as declining local inquiries complicating destocking and export hurdles leading to order cancellations and delays. Seasonal factors and decreases in domestic raw material prices added further pressure on Citric acid prices, with discounted products saturating the market and consolidating the downward trend.
March saw a price increase, partially attributed to Germany's role as a key importing hub and its intricate ties with major exporting nations. The resumption of production activities in these exporting countries, along with the easing of trade disruptions and export momentum halts, provided some resilience to importing nations' market players.
For the Quarter Ending December 2023
North America:
In the North America region, the Citric Acid market in the fourth quarter of 2023 faced several significant factors that impacted prices. Firstly, until the first half of the quarter, there was an overall improvement in the domestic market situation, with increased demand and replenishment of inventories. This was driven by rising input-cost inflation and a surge in domestic inquiries, particularly due to the onset of the winter season. Additionally, the import market experienced supply challenges, with limited inventories among suppliers and a decrease in imports from key exporting countries from H2 of Q4 2023.
For the domestic market of Citric Acid, it witnessed a notable increase in Citric Acid prices throughout the quarter with prices inclining from $2370/mt to $2450/mt between October and December. This was influenced by rising wages and energy prices, which caused inflationary pressures throughout the supply chain. Furthermore, the decrease in import volume from China contributed to a high supply and lowered prices. The bulk ordering and replenishment of inventories by businesses further strained supply and pushed prices higher. Despite these challenges, the market outlook remained optimistic, with expectations of improved demand and steady behavior from buyers. Overall, the Citric Acid market in the North America region, specifically in the USA, faced challenges in supply and increased prices due to various factors. The market outlook remained optimistic, and the quarter ended with a Citric Acid price of USD 870/MT CFR New York in the USA.
APAC:
In the fourth quarter of 2023, the Citric Acid market in the APAC region witnessed several significant factors that impacted prices. Firstly, there was a global decline in prices due to decreased international demand, particularly from major exporting nations. This decline was driven by lower export prices from key Chinese provinces and surplus inventory among German suppliers. Secondly, South Korea, as a major player in the Citric Acid market, experienced a notable reduction in imports, indicating a shift towards accumulating inventory to meet domestic demand. This decrease in imports, coupled with limited supply and steady demand, contributed to a price surge in the country. Additionally, the South Korean Won appreciated by 3.94% against the USD, further influencing the pricing trend. Furthermore, the Consumer Price Index (CPI) in South Korea declined in November, reaching 112.74 points, reflecting subdued levels of activity in the domestic market.
The overall trend in the Citric Acid market in South Korea during the fourth quarter of 2023 was influenced by increased demand, both domestically and internationally. This demand was driven by heightened consumer purchases and the need to replenish inventories with fresh stocks. While the market experienced limited supply, production activities provided cost support to meet the rising demand. In conclusion, the Citric Acid market in the APAC region, particularly in South Korea, saw a price surge in the fourth quarter of 2023 due to increased demand, limited supply, and currency fluctuations. The market was also influenced by global factors such as declining prices in major exporting nations and surplus inventory among suppliers. The latest price of Citric Acid Anhydrous CFR Busan in South Korea for the current quarter is USD 770/MT.
Europe:
In the fourth quarter of 2023, the Citric Acid market in Europe experienced various factors that influenced prices and market dynamics. One of the primary reasons for the market fluctuations was the overall improvement in market conditions and increased demand from downstream industries. This resulted in a consistent rise in prices during the quarter. Another contributing factor was the availability of ample supply in the market, leading to a demand-supply imbalance and subsequent price adjustments. Additionally, the appreciation of the Euro against other currencies boosted the competitiveness of Belgian exports, leading to increased global demand and higher domestic prices. In Germany’s domestic market, Citric acid Anhydrous prices were recorded at $1620/mt at the quarter end.
In terms of Belgium, which experienced the most significant price changes, the market situation improved due to positive economic growth, rising employment, and consistent inflation rates. The country witnessed a slight increase in consumer price index (CPI) and core inflation, indicating improved consumer confidence and expenditure. However, there were no reported plant shutdowns during this period, with operating rates remaining high. Analyzing the price trends for Belgium in the fourth quarter of 2023, there was an overall decrease of 2% in prices compared to the first half of the quarter. This can be attributed to low demand from end-user industries and destocking activities. The quarter ended with a price of USD 1260/MT of Citric Acid FOB Antwerp in Belgium.
