For the Quarter Ending September 2024
North America
In Q3 2024, the Succinic Acid price trend oscillated in the North American region, showcasing moderate sentiments in the market. At the beginning of the quarter, prices witnessed a notable increase, driven by a combination of factors influencing the market dynamics. Factors such as steady demand, limited supplies, and cost support from feedstock Benzene and affected supplies due to hurricanes in the region contributed to the overall bullish market sentiment, highlighting a stable and robust pricing landscape for Succinic Acid in the region.
In the middle of the third quarter, Succinic Acid production rates improved in the exporting Asian region because of the improved availability of feedstock supplies. The offtakes were moderate, and market players reduced their quotations. The correlation in price changes demonstrated a positive sentiment, with an almost 3% decrease in mid-Q3.
Towards the end of Q3, the impact of Hurricane Helene resulted in reduced manufacturing activities and demand from end-user industries and an increase in domestic stockpiles. The market players again reduced their quotations. The quarter-ending price in the USA stood at USD 1810/MT of Succinic Acid CFR Texas and the overall quarter-on-quarter percentage surge of 11% further solidified this growth trajectory in Q3 2024.
APAC
Like the North American region, the Succinic Acid price trend in the APAC region has been characterized by a fluctuating pricing environment. Initially, the quarter witnessed a significant surge in demand for Succinic Acid from various industries, particularly the cosmetics and personal care sectors. This uptick in demand, coupled with moderate supply levels, led to a bullish market sentiment. Additionally, cost support from feedstock Benzene and n--butanol contributed to the rise in production costs of Succinic Acid during the period. However, towards the end of the quarter, the Succinic Acid price trend shifted movement and prices witnessed a decline due to improved inventory levels in the region. At the same time, the resumption of Crude Oil supply from Libya in September 2024 resulted in increased refinery run rates and feedstock Benzene supplies availability, which negatively impacted the production costs. The quarter-ending price for Succinic Acid FOB Qingdao in China stood at USD 1490/MT after a 5% increase in previous quarter prices, reflecting the overall positive pricing environment and upward trend in market prices.
Europe
In Q3, the Succinic Acid market in the European region has been characterized by a fluctuating pricing environment. At the beginning of the quarter, prices showcased an upward movement, as the demand was firm from the key downstream pharma sector, while the manufacturing activities were low amid labor shortages during summer holidays in the region. Reduced production with a consistent decline in the Eurozone Manufacturing PMI Index resulted in low supplies to the market and stressed the inventory levels amid firm offtakes. Supply-side dynamics also played a role, as supply availability was moderately low during the summer holidays creating imbalanced demand-supply dynamics. Yet demand failed to match this increase, as The Eurozone's beauty sector demand continued to remain robust, significantly impacting Succinic Acid consumption. Seasonality played a role as summer holidays resulted in labor shortages and reduced manufacturing rates, impacting supply chains. Additionally, concerns about a potential recession in the US affecting the international crude oil market and refinery operations have led to a shortage of feedstock Benzene supplies, impacting Succinic Acid production rates. Conclusively, the quarter concluded with Succinic Acid CFR Hamburg priced at USD 1690/MT, in Germany, after an overall notable surge of 8% in the last quarter's prices, indicating a consistent upward trend.
For the Quarter Ending June 2024
North America
The North American Succinic Acid market experienced price fluctuations and an overall bullish trend during the second quarter of 2024, driven by several factors. Supply chain disruptions, including major plant shutdowns and reduced feedstock availability (particularly Benzene and n-butanol), led to constrained production and higher prices. Additionally, the rise in Crude Oil prices increased production costs, contributing to the bullish pricing environment.
In the USA, where price changes were most pronounced, robust demand from the pharmaceutical Sector. At the same time, firm orders from polymer sectors, especially the Polyurethane segment, boosted Succinic Acid consumption. Seasonal factors, such as increased orders for polyester fibers in summer, further fueled demand.
Overall, Succinic Acid prices rose by 3% in the second half of the quarter compared to the first half, reflecting strong demand and limited supply. By the end of Q2 2024, Succinic Acid was priced at USD 1690/MT CFR Texas. This price level indicates a resilient market, balancing demand surges with ongoing supply constraints.
APAC
In Q2 2024, the pricing environment for Succinic Acid in the APAC region exhibited notable fluctuations. Initially, prices increased due to strong demand from personal care product manufacturers. L'Oréal, for instance, surpassed market expectations with a 9.4% year-on-year rise in total group sales, driven by its strategies in China's premium cosmetics sector. However, during the mid-quarter, prices declined due to sluggish demand from the pharmaceutical manufacturers. This slowdown occurred amid a surge in M&A spending, which hit USD 191 billion in 2023—a 34% increase from the previous year. Significant deals included AstraZeneca's acquisition of Gracell for USD 1.2 billion and Bristol Myers Squibb's USD 800 million agreement with Chinese biotech SystImmune. By the end of the quarter, prices rebounded as buyers increased their offtakes to stock up and mitigate potential supply disruptions due to regional typhoons and monsoons. At the end of the quarter, Succinic Acid prices were witnessed at USD 1460/MT CFR Busan in South Korea, while export prices from China were USD 1420/MT FOB Qingdao.
Europe
In Q2 2024, the European Succinic Acid market experienced price fluctuations driven by several key factors. Increased production from major Chinese suppliers led to ample stock availability, which, combined with weaker demand from downstream industries, put downward pressure on prices. The decline in feedstock n-butanol prices helped mitigate production costs. Although Benzene prices remained firm initially due to geopolitical tensions and OPEC+ crude oil production cuts, prices eased towards the end of the quarter, reinforcing the bearish trend. Additionally, reduced global freight costs, as container traffic avoided congested routes, contributed to lower ocean rates on major trade lanes.
Germany saw the most significant price changes within the region. Reduced demand for Succinic Acid, particularly from the personal care and food sectors due to rising temperatures, contributed to the decline. The Eurozone's manufacturing sector also contracted, with a slower Purchasing Manager's Index and reduced new orders. Supply uncertainties were exacerbated by plant shutdowns at AkzoNobel and SASA Polyester Sanayi in Adana, further decreasing consumption from polymer manufacturers. Seasonal factors contributed to a 4% price drop from the first to the second half of the quarter and a 3% decrease from the previous quarter. By the end of Q2 2024, Succinic Acid prices settled at USD 1580/MT CFR Hamburg, reflecting a persistently negative market sentiment.
For the Quarter Ending March 2024
North America
The North American market showcased pessimistic sentiments for Succinic Acid during the first quarter of 2024. At the beginning of the quarter, supply rates were firm from Asian exporters as the production rates were robust in the producing country. Meanwhile, offtakes from the domestic market were moderately low due to sluggish operating and consumption rates during the New Year holidays.
During the mid-quarter, the textile industry witnessed a slowdown amid the rise in material costs, which suppressed the demand from Polyester fibre manufacturers amid ample availability of stocks. Consequently, Asian exporters dropped their quotations amid increased stock availability in the international market after the reopening of the Chinese market after the Lunar New Year holidays.
The global freight costs eased towards the end of the quarter, attributed to container traffic bypassing the Suez Canal, which stabilized operations and reduced ocean rates on major trade routes. It reduced the Succinic Acid import costs. Concurrently, demand for Succinic Acid stabilized among personal care product manufacturers due to decreased consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Additionally, inquiries from Polyester fiber makers were low due to a decline in offtakes, and inventory levels rose in the regional market. Conclusively, Succinic Acid CFR Texas quotations in the US accessed at USD 1630/MT at the end of the first quarter of 2024.
APAC
During the first quarter of 2024, the Succinic Acid market showcased bearish sentiments in the APAC region, and prices were dropped consistently by the major Succinic Acid producers in China. At the beginning of Q1, the demand for Succinic Acid was depressing from Polyester manufacturers in the textile sector amid sluggish demand for end products during winter. Simultaneously, product offtakes were moderately low for stocking purposes before the Lunar New Year holidays in major producer China due to reduced applications in the horticulture sector. During the mid-quarter, the product demand fell from the food sector after the celebration of festivals around Lunar New Year in the Asian region, and inventory levels increased in the market. Consequently, producers again dropped their quotations, and prices fell again in the regional market towards the end of the quarter. Additionally, ocean rates declined again because of the Red Sea crisis, which negatively impacted product supplies in the international market, and inventory levels remained in the regional market. Simultaneously, the food sector exhibited low demand for the product. Concurrently, Succinic Acid demand stabilized among personal care product manufacturers due to reduced consumption of moisturizers amidst rising temperatures in the Northern Hemisphere. Conclusively, at the end of the first quarter of 2024, the Succinic Acid FOB Qingdao in China witnessed USD 1450/MT.
Europe
The Succinic Acid prices in Europe followed a downward trajectory like the Asian region in the first quarter of 2024. Initially, production rates were stable in the producing country, and Asian exporters reduced their quotations due to decreased demand and increased availability of stocks. In the mid-quarter, prices declined again as stock availability improved in the international market following the reopening of the Chinese market post-Lunar New Year holidays. Additionally, the textile industry experienced a slowdown in February 2024 due to rising raw material costs and ample availability of previous stocks, which suppressed orders from Polyester fibre manufacturers. Towards the quarter's end, demand for Succinic Acid decreased as consumption rates dropped, resulting in low offtakes from Polyester makers. Concurrently, demand among personal care product manufacturers stabilized due to reduced consumption of moisturizers amid rising temperatures in the Northern Hemisphere. Additionally, import costs decreased due to a reduction in global freight costs as container traffic bypassed the Suez Canal, stabilizing operations, and lowering ocean rates on major trade routes. In conclusion, Succinic Acid CFR Hamburg in Germany was assessed at USD 1570/MT at the end of Q1, 2024.
For the Quarter Ending December 2023
North America
The Succinic Acid price movement oscillated in the North American region, and prices decreased by almost 11% compared to the previous quarter during Q4 2023 due to reduced demand and procurement activities from end-user industries, and exporters lowered their quotations.
Simultaneously, at the beginning of the quarter, the feedstock Benzene prices witnessed a decline during the mid-month amid a decline in Crude Oil prices by OPEC+ due to stabilization in speculations around the supply chain disruptions in the Middle East amid conflict between Israel and Palestinian Islamist Group. The supply of Succinic Acid was moderate from the key exporter China. In the mid-quarter, the demand remained low in the market amid a decline in consumption rates from the food sector. Concurrently, orders depressed from the textile industries amid dampened Polyester fiber demand and use with the arrival of winter. However, orders were stable from the Pharma sector.
Towards the end of Q4, an escalation in freight charges through the Panama Canal raised product import prices. Additionally, the decline in the water levels of the Panama Canal and Mississippi River caused supply chain disruptions and affected the supplies in the regional market. Conclusively, at the end of Q4, 2023, import quotations for Succinic Acid CFR Texas in the USA hovered at USD 1750/MT.
Asia
In the final quarter of 2023, the Succinic Acid market in China fluctuated in the APAC region, with prices declining by 14% compared to the previous quarter. The main factors that impacted the market were dampened demand from buyers and alterations in production rates and supply availability in the regional market. Initially, the market experienced a bearish trend as the orders fell from the textile sector with the arrival of winter and a decline in demand for Polyester fibre. Simultaneously, the feedstock Benzene prices fell due to a decline in upstream Crude Oil prices amid weakening US and European economies, which reduced the production costs. In the mid-quarter, the trading activities declined due to reduced orders from the regional buyers. On the contrary, the Succinic Acid inventory levels were adequately available in the market. Meanwhile, the market also witnessed a moderate decline in demand from the food sector during the winter season. Towards the end of the quarter, a fire incident on 23rd December at Qilu Petrochemical in Shandong Province resulted in stressed supplies of feedstock n-butanol, and production rates were affected in key Succinic Acid producer China. Simultaneously, the market showcased improvement from the regional clothing fibre industries due to increased consumption and an increase in regional retail sector sales in the concluding month of the year. At the end of the quarter, the Succinic Acid FOB Qingdao quotations in China witnessed USD 1590/MT, while in South Korea, Succinic Acid CFR Busan hovered at USD 1620/MT.
Europe
Like the North American region, the Succinic Acid price trend oscillated in the European region during the fourth quarter of 2023, and prices witnessed a decrease of almost 9% compared to the previous quarter. This decline was mainly due to reduced demand and procurement activities from end-user industries, leading exporters to lower their quotations. The demand for Succinic Acid was low to moderate, with a decline in orders from the textile industry due to a decrease in polyester fibre demand during the winter. In the mid-quarter, consumption rates declined from the food sector because of a contraction in the food sales index by 1.1% in October 2023. Simultaneously, there was a decrease in offtakes and procurement activities from buyers, resulting in higher inventory levels, while supply rates remained moderate during the period. Towards the end of the quarter, availability of supplies remained tight in the regional market amid supply chain disruptions. The Asian exporters reduced their supplies to the regional market amid a simultaneous increase in ship traffic after the Houthi Rebels in Yemen attacked the vessels in the Red Sea and commercial vessels rerouted to the Cape of Good Hope. At the end of Q4, the import quotations in Germany Succinic Acid CFR Hamburg witnessed USD 1770/MT.
