Citric Acid Market Weekly Report

Citric acid price analysis
This week, the citric acid market price continued to be stable, the supply of goods was temporarily sufficient, and the downstream market mainly digested the previous contracts, and the sales were average. As of Thursday this week, the mainstream transaction price of food-grade monohydrate citric acid in the market was 4800-5200 yuan/ton, and the price reference of food-grade anhydrous citric acid was 5100-5500 yuan/ton.

Citric acid supply analysis
Changes in the operating rate of citric acid enterprises
According to the monitoring data of Steel Union, the operating rate of the citric acid industry this week is 55%. It is the same as last week. Manufacturers are operating normally and executing previous contract orders. The production cost of citric acid is low, the supply of goods is sufficient, and the inventory level of upstream enterprises is acceptable.

Related product analysis
Corn market analysis
This week, the national corn price was weak overall, down 28 yuan/ton from last week. In terms of regions, the corn price in Northeast China fell slightly. Affected by the policy of increasing reserves of China National Grain Reserves Corporation, the market decline slowed down, and farmers were reluctant to sell. Although the purchase and storage increased, the grain quality in Northeast China was average, and the toxins exceeded the standard too much, so the amount of corn that could be delivered to the warehouse was small.
The decline in corn prices in North China narrowed, farmers' enthusiasm for selling grain weakened, grassroots purchases and sales were flat, traders were not willing to make medium- and long-term inventory, and the arrival volume of deep processing enterprises remained high, which had many negative factors on the market. This week, the corn market price in the sales area fluctuated narrowly. Affected by the futures market and the purchase and storage policy, the port quotation increased, but the downstream feed companies were not positive in stocking up, and the overall market transaction was relatively flat.

Analysis of factors affecting the future market of citric acid
Operation: The operation rate remains stable, and the supply is reduced at a low level, which is slightly positive; otherwise, it is negative.
Production: The output supply is limited, which is positive for the future market; otherwise, it is negative.
Inventory: The inventory level is slightly high, which is negative for the future market; otherwise, it is positive.
Demand: Limited downstream operation, sluggish demand, negative for prices; otherwise, it is positive.
Cost: The cost level is low, which is difficult to support product prices; otherwise, it is positive.
Export: Export orders are weak, which is negative for the future market; otherwise, it is positive.

Citric acid market outlook
In terms of supply, citric acid enterprises have been producing relatively stably recently, the market supply is normal, and the downstream has basically digested the previous orders, and the enthusiasm for replenishment is average. The raw grains fluctuated slightly, and the support for citric acid prices was average. In terms of demand, the market purchase and sales were not fast, and low-priced small orders were the majority. The fluctuations on the supply and demand sides are limited, and it is expected that the price of citric acid may continue to be stable in the near future.