TOP5 citric acid products sold in china by 20241、Market Review This Week: Leading Companies Continue to Raise Prices
This week, MSG manufacturers saw a significant increase in order prices, with leading companies raising their quotes by 150-200 yuan/ton. The upstream market showed a strong bullish sentiment, maintaining firm prices. Major MSG manufacturers’ mainstream transaction prices for 40-60 mesh bulk MSG were 6550-7000 yuan/ton, while the mainstream intended price for 80 mesh was 6100-6300 yuan/ton. Prices for bulk MSG in sales regions also rose, with lower prices gradually decreasing. On March 12th, the mainstream market price for 40 mesh bulk MSG in sales regions was around 6700-7000 yuan/ton, with some smaller brands offering prices 200-300 yuan/ton lower. As of Thursday, the average price of 40 mesh bulk MSG in sales regions this week was 6807.5 yuan/ton, up 1.16% from last week’s average and down 5.89% from the same period last year.
- Driving Factors Analysis: Increased Cost Pass-Through Fuels MSG Price Increases
This week, the MSG industry’s operating rate was 87.4%, with a weekly output of 66,700 tons, remaining stable compared to last week. Leading companies in the industry maintained relatively stable operating rates. Production in Heilongjiang province has not yet resumed normal shipments, and companies are maintaining a strong price stance due to rising cost pressures. MSG prices in sales regions rose slightly following company quotations, with demand showing a trend of being supported by essential needs and gradually following suit. Boosted by the continued price increases from leading companies, downstream markets, influenced by the “buy high, sell low” mentality, increased their purchasing activity, with distributors gradually replenishing their stocks as needed, resulting in a relatively positive market atmosphere. However, downstream users remain cautious about continued price increases, with a more cautious wait-and-see attitude, and overall, restocking is mainly for essential needs, resulting in a moderately positive demand performance.
According to data from Zhuochuang Information, as of March 12th, the average transaction price of 40-mesh monosodium glutamate (MSG) in Inner Mongolia this week was 6805 yuan/ton, up 1.2% from the average price last week; the average weekly purchase price of corn in the region was 2244.3 yuan/ton, up 1.5% from the average price last week; the average purchase price of soda ash was 1285 yuan/ton, up 2.0% from the average price last week; the average price of coal was 529.6 yuan/ton, down 1.1% from the average price last week; the price of sulfuric acid was 1203.7 yuan/ton, up 5.3% from the average price last week; the average raw material cost per ton of MSG this week was 7562.8 yuan, up 1.2% from the average price last week; without hedging by-products, the company’s profit was -1773.5 yuan/ton, an increase of 26.1 yuan/ton in losses compared to last week. After hedging by-products and compound fertilizer, the theoretical loss per ton of MSG was 573.5 yuan. Although MSG prices continued their upward trend this week, raw material costs also rose, resulting in a slightly larger increase in costs than the price increase itself. Companies remain under pressure and facing losses.
- Market Outlook for Next Week: MSG Prices May Continue to Rise
The MSG market is expected to maintain a relatively strong trend next week. On the supply side, major companies in the industry are operating at high capacity, and leading companies are maintaining stable production. However, supported by continuously rising raw material costs, companies are facing increased cost pressure and a strong willingness to raise prices. On the demand side, downstream buyers are influenced by the “buy high, sell low” mentality, leading to increased market inquiries and purchases. Demand is gradually recovering, and the buying and selling atmosphere is positive. However, downstream buyers are cautious about high prices, mainly replenishing their stocks in batches as needed, with limited willingness to continuously chase higher prices. It is expected that in the short term, due to the transmission of high costs and the temporary tight supply and demand situation, the price of monosodium glutamate (MSG) may continue to be strong. It is estimated that the average price of 40 mesh MSG in Inner Mongolia will be 6,900 yuan/ton next week, an increase of 100 yuan/ton compared to this week. The price range of 40 mesh MSG in sales areas may be 6,800-7,050 yuan/ton.
Source: Zhuo Chuang Information)
