Citric Acid Market Weekly Report

Citric acid price analysis
Last week, the market price of citric acid continued to run steadily, and the market maintained a cautious attitude and maintained the replenishment of rigid demand.
As of Thursday this week, the mainstream transaction price of food-grade monohydrate citric acid in the market was 4900-5100 yuan/ton, and the price reference of food-grade anhydrous citric acid was 5100-5400 yuan/ton.

Corn market analysis
Last week, corn prices adjusted downward. As of March 27, the national weekly average price of corn was 2,260 yuan/ton, down 8 yuan/ton from the previous week. In terms of regions, the price of corn in Northeast China was weak last week. The decline in futures prices, the decline in prices at northern ports, and the enthusiasm of downstream feed companies to purchase generally had a certain adverse impact on the market sentiment in the production area.
Last week, the price of corn in Northeast China fell by 10-30 yuan/ton. Last week, corn prices in North China fell first and then stabilized. At the beginning of the week, the corn prices of deep processing companies continued to decline. However, after the price reduction, traders' enthusiasm for shipments was significantly weakened, the arrival volume gradually decreased, corn prices gradually stabilized, and prices of some companies rebounded slightly. Corn prices in the sales area market tended to stabilize, and purchases and sales were flat.

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
As corn prices fall slightly, the cost side is not supported enough, and domestic traders have different attitudes towards the later market. Most traders are mainly risk-averse, with low inventory and purchase as needed. Downstream demand continues to be weak, which is bearish for citric acid prices. In the short term, citric acid prices may continue to stabilize temporarily. In the long term, the export demand for citric acid will weaken in April, and the domestic market demand is expected to be general. By then, the inventory of upstream manufacturers will gradually accumulate, supply will exceed demand, and the price of citric acid may fall.