Citric Acid Market Weekly Report

This week’s core viewpoints
This week, the market price of citric acid remained stable. Some companies had tight supply and executed previous contracts. The market waited and watched the company’s quotation, and inquiries were relatively frequent. The export continued to be favorable, which effectively supported the price. It is expected that the price will be stable in the near future, or there will be a slight increase.

Citric acid price analysis
This week, the market price of citric acid continued to run steadily. Some companies had tight supply, which affected the market’s purchase of goods and mostly executed previous contracts. 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 companies
According to the monitoring data of Steel Union, the operating rate of the citric acid industry this week was 55%. The industry’s operation was basically the same as last week, the company had sufficient new orders, and the inventory was digested. It is expected that the tight supply situation will be improved next week.

Related product analysis
Corn market analysis
This week, corn prices performed differently in various markets. There was an increase in the Northeast and sales areas, and the corn price in North China rose first and then fell. Corn prices in Northeast China rose slightly this week. Rainy weather occurred during the week, and the moisture content of some corn increased. Supported by traders’ costs, the shipping price was slightly raised. Corn prices in North China maintained a trend of rising first and then falling. Grassroots purchases and sales were relatively light, mainly wet grain purchases and sales, and there was basically no dry grain purchased at grain points. The arrival volume in front of deep processing enterprises remained high, but enterprises mainly purchased wet grain, which could not be stored for a long time, and mostly purchased on demand. Market purchases and sales maintained a dynamic balance, and the price fluctuation range was limited. The overall market price of corn in the sales area rose and gradually stabilized. The quotations of southern ports followed the price changes of northern ports and futures markets. From the weekend to the beginning of the week, the prices rose significantly. With the consolidation of the futures market, the quotations of southern ports were temporarily stable, and the arrival time of pre-sale orders was in mid-to-early December. Downstream enterprises have a good position, and there is limited room for growth this week. Previous orders have arrived one after another. There are diverse sources of goods in the southwest and inland areas, and there are arrivals in the northwest and northeast, which are generally stable.

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 raw materials, the inventory of corn deep processing in North China increased in November, and deep processing companies lowered their prices. It is expected that North China will weaken slightly next week, but it will be mainly adjusted in a narrow range, with limited decline, and cost support will still exist. In terms of supply, acid companies are supplying goods normally, and the operation is at a medium level. Some companies are short of supply, which may be alleviated later. On the demand side, the number of inquiries has increased, trade shipments have temporarily improved, overseas demand has improved significantly, and the market has been slightly boosted. Manufacturers are obviously holding prices, and there is favorable support in the market in the short term. There is room for prices to rise, but the increase is limited. As an export-oriented industry, citric acid’s subsequent price changes will also focus on the signing of foreign trade orders.