TOP5 citric acid products sold in china by 2024- Market Review for the Week: Producers’ Resolve to Maintain Price Levels Provides Key Support; Prices Remain Stable with an Upward Bias
The monosodium glutamate (MSG) market saw prices remain stable with an upward bias this week, primarily supported by producers’ determination to uphold price levels. Since late September, MSG prices have entered an upward trajectory, driven by leading manufacturers’ strong intent to pass on costs—amidst their current losses—by raising prices. However, as downstream buyers are largely focused on digesting existing inventories, trading activity has been limited to small-volume, essential replenishment orders, resulting in a stalemate between supply and demand. For bulk-packaged MSG, the prevailing transaction prices for 40–60 mesh products from major manufacturers ranged from 6,500 to 6,850 yuan/ton, while the target price range for 80-mesh products stood at 6,300–6,450 yuan/ton. As of October 22, the benchmark market price for 40-mesh bulk MSG in sales regions was 6,700–6,850 yuan/ton, with some brands priced 100–200 yuan/ton lower. By this Thursday, the average market price for 40-mesh bulk MSG in sales regions reached 6,781.3 yuan/ton—an increase of 0.26% from the previous week and 0.49% higher than the same period last year.
Comparison Chart of Average Market Prices for Monosodium Glutamate (MSG)
Data source: SCI99 (Zhuochuang Information)
Prevailing market prices for 40-mesh monosodium glutamate (MSG) in select sales regions
Unit: CNY / MT
| Date | Shandong Area | Guangdong Area | Sichuan Area |
|---|---|---|---|
| Average price this week | 6750.0 | 6800.0 | 6825.0 |
| Average price last week | 6725.0 | 6800.0 | 6805.0 |
| Price Change | 25.0 | 0.0 | 20.0 |
| Same period last year | 6732.1 | 6785.7 | 6742.9 |
| Price Change | 17.9 | 14.3 | 82.1 |
| Change Rate | 0.27% | 0.2% | 1.2% |
Data source: Zhuochuang Info
- Analysis of Driving Factors: Slower Shipments for Certain Specifications; Industry Supply Begins to Recover
This week, the operating rate of the monosodium glutamate (MSG) industry reached 94.7%, with a weekly production volume of 68,300 tons—an increase of 1.1 percentage points from the previous week. As some enterprises ramped up their operating rates, the overall industry supply continued to rise. Currently, the industry’s operating rate remains high, and the market is well-supplied; this abundance continues to exert downward pressure on prices. On the demand side, market activity was stronger early in the week but weakened later; downstream procurement was primarily limited to small, essential orders, lacking the boost that would come from large-scale, concentrated stockpiling. As prices rose, downstream buyers showed resistance to higher-priced goods. The continued circulation of lower-priced stock in the market has capped the potential for transaction prices to climb further. Overall, demand-side momentum for MSG prices remained weak this week; market trends will largely depend on the industry’s resolve to maintain price levels and the sustained support—or lack thereof—from production costs.
According to data from SCI99 (Zhuochuang Information), as of October 22, the transaction price for 40-mesh MSG (in bulk packaging) in the Inner Mongolia region was approximately 6,750 yuan/ton—a 0.6% increase from the previous week’s average. In the same region, the average weekly purchase price for corn was 2,060 yuan/ton (down 0.2% from the previous week); the average purchase price for soda ash was 1,170 yuan/ton (down 0.8%); the average price for coal was 834.5 yuan/ton (up 2.2%); and the price for sulfuric acid was 1,637.8 yuan/ton (down 0.9%). The average raw material cost per ton of MSG stood at 7,144.5 yuan, a decrease of 0.4% from the previous week. Before accounting for by-products, enterprises faced a loss of 1,394.5 yuan/ton—an improvement of 69.3 yuan/ton compared to the previous week. After factoring in the value of by-products and compound fertilizers, the theoretical loss per ton of MSG is 194.5 yuan. Raw material prices continued to decline this week, gradually easing cost pressures on monosodium glutamate (MSG) producers.
- Market Outlook for Next Week: Focus on Price Adjustments by Leading Producers; Upward Trend in Price Levels Likely to Persist
The MSG market is expected to see a continued, slight upward shift in price levels next week. On the supply side, industry operating rates remain high, ensuring ample market availability. However, given the high level of industry concentration and the current state of operating losses, leading producers remain strongly motivated to coordinate on price support—a shared stance that provides a bullish underpinning for the market. Regarding costs, the arrival of the new corn harvest has led to weaker corn prices, slightly softening cost support; meanwhile, the high prices of auxiliary materials—such as thermal coal, liquid ammonia, and sulfuric acid—continue to provide a rigid cost floor. On the demand side, domestic downstream buyers are primarily focused on consuming existing inventories, while traders remain cautious, limiting procurement to small, essential orders. Export trade remains relatively steady; although overall demand growth is sluggish, there is still a baseline of essential demand. In summary, in the short term, as leading producers successfully implement their price-support strategies and downstream buyers place periodic orders, the general price level for MSG is expected to edge upward. However, the extent of any price increase will likely be constrained by supply-side pressure. It is projected that the average price for 40-mesh MSG in the Inner Mongolia market will reach 6,775 yuan/ton next week—an increase of 25 yuan/ton from this week’s average—while prices for 40-mesh MSG in major sales regions are expected to range between 6,700 and 6,900 yuan/ton.
Source: Zhuo Chuang Information)
