Fumaric Acid Pricing Assessment
UNSPC: 41116107

• Russia-Ukraine Conflict (2022):  The conflict has resulted in fluctuations in the prices of raw materials, such as maleic anhydride, which is a primary precursor for fumaric acid. The volatility in the availability and pricing of these materials has directly influenced the production costs of fumaric acid. The conflict has caused substantial disruptions in global supply chains. Both Russia and Ukraine are key players in the production and transportation of various raw materials used in the chemical industry, including those relevant to fumaric acid production. This has led to increased lead times and costs.
• Texas Winter Storm (2021): The extreme cold weather led to widespread power outages and disruptions in manufacturing operations across Texas. Many chemical plants were forced to shut down or operate at reduced capacity, impacting the supply of fumaric acid and other chemicals. The storm affected the production and transportation of key raw materials used in fumaric acid manufacturing. Disruptions in supply chains for materials such as maleic anhydride, which is critical for fumaric acid production, contributed to shortages and increased prices.
• COVID-19 Pandemic (2020): The pandemic led to significant disruptions in supply chains due to lockdowns, transportation restrictions, and workforce shortages. This impacted the production and distribution of fumaric acid, resulting in supply shortages and increased prices. Fumaric acid production relies on several key raw materials, such as maleic anhydride. Disruptions in the supply of these materials, caused by factory shutdowns and logistical challenges, contributed to rising production costs for fumaric acid.
• Geopolitical Tensions (2018-2019): The trade tensions between the U.S. and China led to tariffs on various chemicals and raw materials. This resulted in increased costs for producers and suppliers of fumaric acid, as tariffs impacted the pricing of key raw materials used in its production. Geopolitical events often lead to fluctuations in the availability and prices of raw materials, such as maleic anhydride. As these prices increased due to supply uncertainties, the production costs for fumaric acid also rose, leading to higher market prices.
• Shale Gas Boom (2010): The increase in shale gas production led to a substantial reduction in natural gas prices. Since many chemical processes, including those for producing fumaric acid, rely heavily on natural gas as a feedstock and energy source, the lower costs directly contributed to reduced production expenses.
• Global Financial Crisis (2008-2009): The economic downturn led to reduced industrial activity and consumer spending. Demand for many products that use fumaric acid, such as automotive parts and construction materials, plummeted, causing a decline in consumption and putting downward pressure on prices.
• Hurricane Katrina (2005): The hurricane caused extensive damage to chemical manufacturing facilities, particularly in the Gulf Coast region, where many chemical plants are located. Shutdowns and reduced operational capacity in these facilities led to temporary shortages of fumaric acid and increased production costs.

These events underscore the Fumaric Acid market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.