Citric Acid (Powder) Price Trend and Forecast

Citric Acid (Powder) Regional Price Overview

Get the latest insights on price movement and trend analysis of Citric Acid (Powder) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Citric Acid (Powder) Price Trend for the Q4 of 2024

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In Q4 of 2024, the citric acid (powder) market in North America saw a gradual upward trend. The prices of citric acid (powder) were around 2219 USD/MT (CFR) in October and rose to approximately 2236 USD/MT in November in the US markets. The price increase was mainly due to a reduction in the supply of corn, a key feedstock. Major corn-producing states experienced weather-related issues during the harvest season, leading to a decrease in supply. This limited availability of corn increased production costs, narrowing the profit margins for citric acid (powder) manufacturers, as procuring corn at lower prices became more difficult. Additionally, logistical challenges, including high shipping charges for imports from Asia, further contributed to the rising costs.
 

Citric Acid (Powder) Price Chart

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In Asia, supply conditions remained strained as China, a leading producer of citric acid, faced bottlenecks. Severe weather events, such as typhoons, caused shipping delays, resulting in a limited supply of feedstocks. Moreover, inventories in the Asia-Pacific region fell due to increased demand from downstream industries, including food and beverages, pharmaceuticals, and cleaning products, driven by seasonal procurement spikes. Overall, the rise in feedstock prices supported the upward trend in citric acid (powder) prices, which showed a gradual incline during the last quarter of 2024.

Analyst Insight

According to Procurement Resource, moving forward in the new year, the prices of citric acid (powder) are expected to maintain a similar trend until the supply of the major feedstock stabilizes.
 

Citric Acid (Powder) Price Trend for the Q3 of 2024

In Q3 2024, the global market for citric acid powder experienced varied trends, with regional dynamics shaping its price movement. In Asia, where citric acid powder is primarily produced, prices were tempered by abundant supply from China, the leading producer, thanks to stable corn feedstock availability. Despite strong industrial demand, particularly in the food and beverage sector, the oversupply situation in the region prevented significant price increases. In Europe, however, the scenario was different.

Manufacturers faced higher production costs due to rising energy prices and the implementation of stricter environmental regulations, which led to increased production costs. These additional costs were passed on to consumers, pushing up prices for citric acid powder, even as demand remained subdued in key sectors. In North America, the market saw more price predictability as corn prices stabilized, offering relief to producers. However, logistical hurdles, particularly in transportation, continued to exert upward pressure on prices, while imports from Asia and Europe added to price volatility. Overall, citric acid powder prices remained under pressure from raw material and logistical costs, with regional variations and external factors continuing to influence the market.

Analyst Insight

According to Procurement Resource, citric acid powder prices are likely to face continued volatility in Q4 2024, driven by fluctuations in raw material costs and regional supply chain disruptions.
 

Citric Acid (Powder) Price Trend for the Q2 of 2024

In Q2 2024, the global citric acid powder market faced notable disruptions, driven by a confluence of supply chain challenges and geopolitical tensions. In Asia, global supply chain bottlenecks, compounded by domestic production slowdowns during the Dragon Boat festival, resulted in price increases. Transportation costs surged due to geopolitical issues, leading to a decline in overseas inquiries, even as domestic demand remained strong. This shift raised concerns among manufacturers and traders alike.

In Europe, similar supply chain disruptions, exacerbated by the closure of the Port of Baltimore and geopolitical tensions in the Middle East, placed significant pressure on citric acid powder pricing. The redirection of shipping routes and rising logistical challenges led to higher transportation costs, impacting both manufacturers and traders. In North America, the Port of Baltimore's closure contributed to delayed shipments and forced companies to adjust their operations, further increasing costs.

Rising shipping prices and shrinking profit margins led to a cautious approach by importers, while domestic demand remained modest, resulting in weak market momentum. By quarter-end, traders resorted to offering discounts on bulk purchases in an effort to stabilize the market, though the effects remained uncertain.

Analyst Insight

According to Procurement Resource, The citric acid powder market is expected to remain under pressure in Q3 2024, with ongoing supply chain disruptions and rising geopolitical uncertainties continuing to affect both pricing and demand.
 

Citric Acid (Powder) Price Trend for the Q1 of 2024

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Citric acid powder prices were found to be fluctuating during the first quarter of the year 2024. The price trajectory was mixed as the prices moved down initially from January to February, owing to the oversupplied inventories and fewer demands. However, in the second half of the quarter, the market started rebounding marginally as the demand started improving.

The overall average monthly prices in the USA, however, went from about 2354 USD/MT in January’24 to around 2249 USD/MT in March’24 after slightly backtracking in the early phase. Q1’24 saw citric acid powder prices wavering in a confined manner, particularly in the American region. In the US market, the demands rose from the downstream food and beverage industries as the summer season approached.  Overall, the market outlook exuded borderline stability in Q1’24.

Analyst Insight

According to Procurement Resource, going forward, the market projections look optimistic for the Citric Acid Powder. The peak summer season will call for higher citric acid powder consumption. Thus, the prices are expected to increase in the coming months.

Procurement Resource provides latest prices of Citric Acid (Powder). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.