Citric acid Market Weekly Report

Analysis of Citric Acid Price

This week, the market price of citric acid remained stable with a slight weakness. Terminal demand was weak, and the enthusiasm of downstream buyers to purchase was relatively low
Replenish stocks based on essential needs. As of this Thursday, the mainstream transaction price of food-grade monohydrate citric acid in the market is 4,800-5,000 yuan per ton, while the reference price of food-grade anhydrous citric acid is 5,000-5,300 yuan per ton.

Analysis of Related Products
Corn Market Analysis

This week, the price of corn rose narrowly, and the price center continued to shift upward. As of June 5th, the weekly average price of corn across the country was 2,367 yuan per ton, an increase of 3 yuan per ton compared with last week.
By region, corn prices in Northeast China remained stable with a slight strengthening trend this week. Traders' quotations were firm, but the actual transaction situation was average. The slight increase in the purchase quotations for deep processing has no adverse impact on the corn market for the time being. The North China region maintained a situation of narrow adjustment within the range, and the mainstream prices remained stable. Weak wheat prices have put pressure on corn. Traders continue to sell and cash out before the wheat harvest. Northeast grain sources continue to supplement the North China market. The overall supply of corn is still acceptable. The price of corn in the sales area market remained stable with a slight increase. Before the Dragon Boat Festival, downstream feed enterprises replenished their inventories in small quantities and mainly executed previous orders. After the Dragon Boat Festival, market purchase and sales activities were average, and the quotations at some ports increased slightly. New wheat has been continuously available on the market, with a relatively small price difference from corn. As a result, the proportion of wheat purchased by feed enterprises to replace corn has further increased.

Outlook on Citric Acid Market

From the perspective of raw materials, the price of corn is still experiencing slight fluctuations, providing limited support for the price of citric acid, and the market trading is not active.
From the supply side, the inventory of citric acid industry manufacturers is gradually accumulating at present, and the overall situation shows an oversupply, with enterprises making profits.
The profit margin has been continuously and slightly shrinking. From the demand side, the demand for citric acid is sluggish and the weakness is hard to change. The enthusiasm of traders and downstream buyers to purchase remains low. The operating rates of downstream processing plants have remained at a low level. The demand from beverage factories has slightly increased. It is expected that the demand will not improve in the short term, and the downward trend in citric acid prices is hard to stop. Supported by the positive factor of no export demand, it is expected that the price of citric acid will continue to fluctuate weakly within the next week.