Citric Acid Market Weekly Report

Citric Acid Price Analysis

This week, the citric acid market price remained stable. Domestic downstream demand was weak, with a strong wait-and-see attitude and poor purchasing activity. The trading market saw mostly flexible pricing and slow sales. Currently, downstream purchasing activity is generally low. While corn and sulfuric acid prices remain high, the citric acid market lacks significant positive factors, which may negatively impact future prices. Considering various factors, citric acid producers are maintaining high prices. As of Thursday, the mainstream transaction price for food-grade monohydrate citric acid was 6000-6300 yuan/ton, and the price for food-grade anhydrous citric acid was around 6400-6700 yuan/ton.

Citric Acid Plant Operating Rate Changes

According to data monitored by Steel Union, the citric acid industry operating rate this week was 56%. This is stable compared to last week. Currently, citric acid production facilities are relatively stable, supply is relatively abundant, and upstream companies have adequate inventory levels.

Related Product Analysis

Corn Market Analysis

This week, corn market prices remained stable to slightly weaker. As of July 16th, the national weekly average corn price was 2350 yuan/ton, a decrease of 8 yuan/ton from the previous week, a drop of 0.34%.

Regionally, corn prices in Northeast China were weak this week, with sluggish trading. Some traders in producing areas experienced issues such as grain matting and moldy kernels, leading to active selling but generally low transaction volumes. The purchase price of corn for deep processing in Northeast China continued to decline; feed companies mainly purchased substitute grains. Corn prices in North China fluctuated narrowly within a range. Frequent rainy weather in parts of North China resulted in unstable deliveries to deep processing enterprises, but traders' inventory levels remained higher than the same period last year, leading to a focus on selling at higher prices. Corn market prices in consuming areas remained stable to slightly weaker, with a downward shift in the center of gravity. Trading was mainly driven by immediate needs and sporadic transactions. Downstream buyers primarily purchased substitutes, pushing down corn prices, with some small and medium-sized traders proactively offering slight discounts.

Citric Acid Market Outlook

On the raw material side, corn prices saw a slight decline, while sulfuric acid prices remained high, resulting in generally modest production profits for citric acid producers. On the supply side, upstream acid plants operated relatively stably, and citric acid production facilities remained stable, leading to a stable spot supply. On the demand side, domestic downstream users showed weak purchasing sentiment, and sales in the trading market were slow. Some traders opted for flexible pricing and adopted a wait-and-see approach. Overall, current citric acid prices are high, downstream market acceptance is relatively weak, and seasonal consumption is relatively flat. The market lacks new positive factors to support prices, resulting in a slight bearish impact on citric acid prices. The market will continue to focus on downstream demand and order placement status for companies in the future.