Citric Acid Market Weekly Report

Citric Acid Price Analysis

This week, citric acid prices rose. Domestic downstream demand was relatively weak, while export demand was acceptable, and enterprise shipments remained stable. Recent increases in raw material prices have resulted in poor production profits for citric acid enterprises, supporting their willingness to maintain prices. Current cost support is significant, and considering various factors, citric acid enterprises have a strong willingness to maintain prices.

Citric Acid Supply Analysis
Citric Acid Enterprise Operating Rate Changes

According to data monitored by Steel Union, the operating rate of the citric acid industry this week was 53%. This is stable compared to last week. Currently, citric acid production facilities are operating stably, manufacturers are producing normally, supply is sufficient, and upstream enterprises have adequate inventory levels.

Related Product Analysis
Corn Market Analysis
This week, national corn prices continued to rise. As of March 5th, the national weekly average corn price was 2369 yuan/ton, an increase of 29 yuan/ton compared to last week.

This week, purchase prices at northern ports and deep-processing enterprises in Northeast China continued to rise. Traders in producing areas were replenishing their inventories and also selling at inflated prices, with no significant selling pressure observed at the grassroots level. In North China, rain and snow have dampened farmers' enthusiasm for selling grain, slowed traders' sales, and kept deep-processing enterprises' deliveries low, resulting in insufficient effective supply. Meanwhile, downstream enterprises still need to replenish their inventories, driving up prices. Corn prices in sales areas followed the upward trend in production areas, but actual transactions were sluggish. Feed companies mostly chose to consume existing inventories, showing a generally low acceptance of high-priced new grain and a very cautious purchasing attitude.

Citral Acid Market Outlook

Operating Capacity: Stable operating rates reduce supply, slightly positive; conversely, higher operating rates are negative.

Production: Limited production and supply are positive; conversely, higher production is negative.

Inventory: Low inventory levels are positive; conversely, higher inventory levels are positive.

Demand: Limited downstream production and weak demand are negative for prices; conversely, higher demand is positive.

Cost: High costs support product prices; conversely, lower costs are negative.

Exports: Stable export orders are negative; conversely, higher export orders are positive.

Citric Acid Market Outlook

Regarding raw materials, current costs are high, with some raw material prices rising, providing significant cost support. Citric acid producers are experiencing poor profit margins and are maintaining a strong price-holding mentality. On the supply side, acid producers are supplying goods normally, with some operating at moderate levels. Citric acid production facilities are operating stably. Domestic downstream market demand is weak, while export sales are acceptable. Overall, market demand is moderate, but cost factors continue to support citric acid producers' willingness to maintain prices. The market will need to pay close attention to changes in raw material costs and export order status in the future.