- Malic Acid: Prices have risen sharply due to geopolitical tensions, shipping disruptions, and container shortages in China and the US.
- Xanthan Gum: The EU market faces supply shortages and rising costs due to increased shipping fees from China, production shutdowns, and strict quality standards.
- Sodium Bicarbonate: Prices saw a slight increase in June 2024, driven by supply constraints and rising raw material costs despite lower demand from key industries.
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Global additive prices are experiencing significant fluctuations due to economic and logistical challenges. Malic acid prices have risen sharply, driven by geopolitical tensions and shipping disruptions in China and the US. The EU xanthan gum market faces supply shortages and rising costs due to increased shipping fees, production shutdowns, and strict quality standards. Sodium bicarbonate prices have slightly increased due to supply constraints and higher raw material costs despite lower demand. Additionally, the amino acid market is seeing price surges from heightened demand and supply chain issues, while gelatin prices show regional variability, with declines in Asia and the US and increases in Europe.
Let’s take a look at what else is happening on the market!
Products of the Week
Malic Acid
Global malic acid prices saw a notable increase. In China, this rise was driven by the stronger yuan, geopolitical tensions, and a shortage of containers, disrupting trade activities. In the United States, prices climbed due to disruptions in the global supply chain, drought conditions affecting the Panama Canal, and higher transportation costs. Additionally, general rate hikes introduced by ocean carriers further escalated shipping costs, highlighting the intricate dynamics of the global malic acid market.
Xanthan Gum
The EU market for Xanthan Gum is facing notable supply shortages and rising prices. This is due to a significant increase in shipping costs from China, maintenance shutdowns by major producers during the summer, and the specific requirements for E415 & AF standard Xanthan Gum, which necessitate careful selection from production batches. Additionally, the complex and frequently inspected import process adds to the supply chain delays, further exacerbating the scarcity and price hikes in the market.
Sodium Bicarbonate
In June 2024, the global Sodium Bicarbonate market saw a slight increase in prices. This change is due to a combination of supply constraints and rising raw material costs. Despite a general decline in demand from sectors like pharmaceuticals, textiles, and food industries, operational challenges in the production of soda ash, particularly in China, have caused disruptions. These issues, coupled with strategic inventory management by producers and traders, have led to an upward pressure on prices.
NEWS
Amino acid prices surge amid economic shifts
Rising prices for amino acids, essential to the food, pharmaceutical, and manufacturing industries, highlight robust global economic activity and evolving supply chain dynamics. Increasing demand, tightening supply, and raw material fluctuations are driving this trend, significantly impacting production costs. The industry, especially the animal feed and food supplements sectors, is experiencing heightened demand, which is spurring innovation. Additionally, the rise in global freight rates signals proactive stockpiling amid uncertainty. Collaboration between companies and policymakers is crucial to ensuring a stable supply amid market disruptions.
Gelatin market in a volatile situation
Global gelatin prices varied significantly by region in May. Asian and U.S. markets saw price declines due to excess inventories, which lowered demand for further purchases. Lower production in China and slower factory operations in India further depressed prices in the region. In the U.S., lower prices were also the result of a slowing economy and rising inflation, which negatively affected consumer sentiment.
The opposite situation prevailed in Europe, where gelatin prices rose. Supply chain problems and economic growth increasing demand for gelatin contributed to this. Delays at ports in Northern Europe and the Red Sea, as well as higher transportation costs, led to shortages of the commodity and price increases.
