Citric Acid Market Weekly Report

Citric acid price analysis
Last week, the market price of citric acid continued to be stable, and some trade prices increased by 100 yuan/ton. The market mostly maintained a cautious attitude and maintained the replenishment of rigid demand. As of Thursday last week, the mainstream transaction price of food-grade monohydrate citric acid in the market was 4900-5100 yuan/ton, and the reference price of food-grade anhydrous citric acid was 5100-5300 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 last week is 55%. The industry's operation is relatively stable, and the market supply is sufficient.

Related product analysis
Corn market analysis
Last week, corn prices rose first and then stabilized, and the price center of gravity continued to move up. As of March 13, the national weekly average price of corn was 2,243 yuan/ton, up 25 yuan/ton from last week. In terms of regions, corn prices in Northeast China continued to be strong. As the temperature rose, the storage conditions of damp grain declined, the sales speed gradually accelerated, the surplus grain at the grassroots level was relatively small, and the grain in Northeast China gradually went in line with the price, and the corn export volume increased. Corn prices in North China rose first and then stabilized. At the beginning of the week, the effective supply in the market was still tight, and corn prices continued the previous upward trend. After that, traders gradually increased their enthusiasm for shipments. At the same time, the Northeast
grain source began to flow in, supplementing the supply in North China to a certain extent, and corn prices began to decline narrowly. After the rise in corn prices in the sales area market, they gradually stabilized, and the purchase and sales activities tended to ease. The production area and futures prices strengthened, supporting the increase in quotations by traders in the sales area, but downstream companies were not very receptive to high prices, and the transaction situation was general, and the actual transaction price boost was limited.

Analysis of factors affecting the future market of citric acid
Operation: The operating 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
From the supply side, industry inventory has gradually transferred to traders, upstream enterprises have eased inventory pressure, and production is normal and supply is orderly. From the demand side, citric acid prices have continued to rise in the early stage, traders basically stocked up in small quantities, and the enthusiasm for taking goods has decreased. Downstream factories have low production and demand is low. March is still the traditional peak season for citric acid exports, and export demand is acceptable. Corn prices continue to rise, and corporate production costs have increased. In order to ease cost pressure, upstream production companies have a strong intention to support prices, and prices may continue to rise slightly.