Lactic Acid Prices Trend and Forecast

North America

In the North American region, Lactic Acid followed the fluctuating price trajectory in the first quarter of 2023. The US Lactic Acid market started the first quarter off better, with prices rising in January. Lactic Acid Prices in the US are under pressure due to rising import costs from EU countries. Rising inflation and the price of feedstock further hurt the market for the product. However, as a result of downstream firms' strong wait-and-see attitude, which forced US suppliers to decrease their pricing in order to increase orders, these values subsequently declined in February. The product's price had dropped towards the end of the quarter as a result of lower downstream pharmaceutical sector demand and available stockpiles. Thus, rising to USD 1420/MT in March from USD 1590/MT in January, an unstable market was seen in the prices of Lactic Acid.

Asia- Pacific

In the first quarter of 2023, Lactic Acid prices in the Asia Pacific region experienced a swing in the market, supported by a lingering downstream demand from a variety of end-user pharmaceutical and food sectors. Due to cost transmission in some locations, the lactic acid market in China started to grow strongly, with prices rising quickly to USD 1510/MT during the first month of the quarter. Lactic Acid inventories declined as a result of production activities being delayed in the domestic market due to a lack of supply among Chinese producers used as a feedstock. Prior to their collapse in March, prices started to stabilize towards the lower end as November approached. Since the price of lactic acid significantly dropped in H1 of Q1, the majority of downstream starch was. Thus, by the end of Q1, the FOB Shanghai prices for Lactic Acid in China were assessed at USD 1310/MT.

Europe

In the European region, the price of Lactic Acid displayed fluctuating price trajectory during the entire first quarter of 2023. The price fluctuated from USD 1575MT in January to USD 1380/MT in March. The manufacturing unit processing of Lactic Acid was impacted by decreased production in the United States and the European Union. A scarcity of starch quickly replaced the overabundance that had existed in the German market. The majority of Lactic Acid producers in Germany struggled to meet the demands of their current customers, leaving them a little potential for expansion. The last month saw a healthy and rising demand from end-user industries, including the local and international food and pharmaceutical sectors, according to trade sources, with values in Germany creeping up.

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