China’s citric acid price has witnessed a significant drop in October, due to slack demand and sufficient inventories. However, the price is likely to rise again in December, facing new environmental pressure and the largest festival in China.
The prices of both, anhydrous citric acid and monohydrate citric acid, have seen a stable growth in the first half of 2017. After remaining more or less stable from June to September, the prices then fall significantly in October, even lower than they have been in the beginning of the year. In November, the price is nearly unchanged from the previous month.
According to market intelligence firm CCM, the high operation rate for citric acid in China is leading to a sufficient market supply for the demand, which adds pressure on the price and hence many manufacturers have lowered their prices significantly. Even the high environmental pressure from governmental institutions is not changing the situation currently. High inventories of citric acids are furthermore able to balance out fluctuations in the production.
What’s more, the autumn period is normally the beginning season for slack demand for citric acid, as most of the citric acid is used in beverages like soft drinks and that consumption significantly decreases in the cold months of autumn and winter.
However, buyers of Chinese citric acid may speed up their purchasing at this time, as the price is likely to go up again in December and January, according to CCM.
Citric acid is naturally found in citrus fruits around the world. However, it can also be synthesized artificially by using aerobic organisms.
CCM is the leading market intelligence provider for China’s agriculture, chemicals, and life science markets.
Do you want to find out more about the minerals market in China? Try our Newsletters and Industrial Reports or join our professional online platform today and get insights into Reports, Newsletter, and Market Data at one place.