EXCLUSIVE UPDATE
What happened ON THE ASCORBIC ACID MARKET?
At the end of 2020, the food manufacturers and additives distributors faced a sharp increase in the price of the Ascorbic Acid (Vitamin C), hitting $8/KG in November. Affected by the cost of the corn raw material, the pandemic and the CNY/USD exchange rate, the supply of Ascorbic Acid could not meet the market demand.
Current Ascorbic Acid market
After its peak of $9.5/KG in January, the Ascorbic Acid price tends to steadily decrease and is now raging between $7-$8/KG, because the corn price has been relatively stable. The recent corn price rise is likely to push the AA price to keep in that rage instead of cooling off a bit.
We may see an improvement by 2021 Q4 when the corn price should be dropping, but until then there will still be the continuous demand for Ascorbic Acid as it is the cheapest bulk health care product widely used, especially during the epidemic situation. Thus, the demand has increased significantly.
More factors to consider
In the long term, there is a possibility of exceeding supply, as the Indian anti-dumping Investigation concerning imports of Ascorbic Acid from China is still ongoing, and since the tariff increase is expected, the suppliers from China will look for new distribution channels.
Distributors and buyers of Ascorbic Acid should align their procurement accordingly and make sure they have access to the stable supply.
Download technical data sheet of DOLCHEM Ascorbic Acid: