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Total amino acid supply may be lower in Q3 due to supply delays from China. The outlook does not seem to be very optimistic. Although the market seems stable at the moment, volatility is expected to be high due to the many unknowns. Want to learn more?
Citric acid prices are stable. Currently the European market is full, as suppliers wanted to ensure continuity of supply, and bought large stocks in Q1 and Q2. We do not anticipate any supply discontinuity, but we expect that prices may rise in the second half of the year once European stocks are cleared. The lockdown of the Shanghai port could also contribute to rising prices and supply chain disruptions.
Lack of availability of raw material due to the introduction of new ECA (European Court of Auditors) regulations has resulted in reduced supplies from Chinese manufacturers due to the need for compositional testing. We see continued high demand. End users are looking for substitutes for this raw material due to rising prices and lack of availability.
Due to lack of availability and rising price of carob gum (E410), tara gum has become an excellent substitute for food manufacturers. We are seeing an increasing demand for all substitutes in the food additive sector due to the ever increasing food and supply prices.
Citric Acid
Citric acid prices are stable. Currently the European market is full, as suppliers wanted to ensure continuity of supply, and bought large stocks in Q1 and Q2. We do not anticipate any supply discontinuity, but we expect that prices may rise in the second half of the year once European stocks are cleared. The lockdown of the Shanghai port could also contribute to rising prices and supply chain disruptions.
Xanthan Gum
Lack of availability of raw material due to the introduction of new ECA (European Court of Auditors) regulations has resulted in reduced supplies from Chinese manufacturers due to the need for compositional testing. We see continued high demand. End users are looking for substitutes for this raw material due to rising prices and lack of availability.
Tara Gum
Due to lack of availability and rising price of carob gum (E410), tara gum has become an excellent substitute for food manufacturers. We are seeing an increasing demand for all substitutes in the food additive sector due to the ever increasing food and supply prices.
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