Citric Acid Market Weekly Report

This week's citric acid fundamentals overview

Citric acid price analysis
This week, the citric acid market price continued to run steadily, terminal demand was weak, downstream enthusiasm for taking goods was low, and the demand for replenishment was maintained. As of Thursday this week, the mainstream transaction price of food-grade monohydrate citric acid in the market was 4,800-5,000 yuan/ton, and the price reference of food-grade anhydrous citric acid was 5,000-5,300 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 this week is 56%. Downstream market demand is weak, manufacturers are short of orders, and industry inventory is slightly accumulated.

Related product analysis
Corn market analysis
This week, corn prices fell first and then stabilized, and prices in some areas stopped falling and rebounded. The price of corn in Northeast China dropped significantly. Corn futures broke down in the night session last Friday. The market sentiment was relatively poor. The auction of imported corn had a relatively obvious adverse impact on the market atmosphere.
This week, corn prices in North China stabilized first and then rose. As prices continued to fall, traders' willingness to ship goods weakened again, and the market supply gradually turned to a tight state. Deep processing companies raised prices to promote revenue. Corn prices in the sales area market showed a fluctuating downward trend. Under the influence of the decline in futures and the negative impact of the auction of imported corn, port traders' quotations loosened, and downstream feed companies mostly took a wait-and-see attitude towards price declines.

Citric acid market outlook
From the perspective of raw materials, corn prices are weak, and the support of raw materials for citric acid has weakened, but the current market price is low and corporate profits are low. From the supply side, manufacturers have large inventories and the industry supply is relatively abundant.
From the demand side, the market demand is stable. During the regular peak season for beverages, citric acid is used as an acidulant and sells well, but the overall demand is general, and the sales of foreign trade exports are also poor, which cannot boost the market.
Combining the above situation, the manufacturer's quotation has basically bottomed out, and there is limited room for further decline. It is expected that the citric acid market will continue to be stable in the short term.