2,3-Dihydroxybutanedioic acid

Tartric Acid: Recent Commodity Market Intelligence Report

I. Price Dynamics
1. Latest Quotations
- As of July 6, 2026, the Business Society benchmark price stands at RMB 11,250 per metric ton (tax-inclusive, 25 kg/bag), unchanged from the beginning of the month and at the highest level over the past year (historical high: RMB 11,250/ton; historical low: RMB 10,166.67/ton).
- Significant regional price differentials exist:
- Jiangsu Province: RMB 14,000/ton (Suzhou Shangma Chemical Technology Co., Ltd.; 99% purity; Zhejiang-branded);
- Shandong Province: RMB 12,000/ton (Shandong Jinshengrun Chemical Co., Ltd.; 99% purity; Zhejiang-branded);
- Another Shandong supplier: RMB 10,200/ton (Shandong Fushengyong Trading Co., Ltd.; 99% purity; Shandong-branded);
- Jinan Jinrihe Chemical Co., Ltd.: RMB 9,100/ton (99% purity; domestically produced).

2. Historical Trend
- Prices fluctuated significantly in June 2026, rising from RMB 10,500/ton at the beginning of the month to RMB 12,262.5/ton at month-end—a 16.8% increase.
- The reference price on July 1, 2026 was RMB 11,250/ton, representing a 4.65% increase compared to RMB 10,750/ton on June 1, 2026.

II. Supply-Demand Analysis
1. Supply Side
- Capacity & Output: In 2025, China’s total domestic capacity for potassium sodium tartrate reached 50,000 metric tons, with output approximating 43,000 metric tons—yielding an overall capacity utilization rate of 86%, indicating balanced supply-demand conditions. The share of bio-fermentation-based production capacity increased to 21%; unit energy consumption and emissions declined, establishing green manufacturing as the industry norm.
- Regional Disparities: Quotations in Hubei Province are consistently higher than those in Shandong, reflecting regional supply-demand imbalances and logistics cost impacts. For example, Hubei Qibajiu Chemical’s industrial-grade potassium sodium tartrate is quoted at RMB 24,000/ton, whereas Jinan Jinhao Chemical’s equivalent product is priced at only RMB 10,100/ton—a staggering differential of RMB 13,900/ton.

2. Demand Side
- Downstream Applications:
- Food & Beverage Industry: Demand for tartric acid as an acidity regulator and stabilizer continues to grow steadily amid consumption upgrades, projected to account for over 40% of incremental market demand;
- Pharmaceutical Sector: Rising demand for cardiovascular and gastrointestinal drug formulations drives expansion of premium pricing for high-purity products;
- Export Market: In 2025, export volume reached 4,370 metric tons, up 12% year-on-year, primarily destined for Southeast Asia, India, and Europe. Under the RCEP framework, ASEAN markets have emerged as a new growth engine.
- Demand Resilience: Downstream demand remains robust despite upstream price increases; feed and veterinary medicine sectors maintain strong, inelastic demand—for instance, for tartrate-salt derivatives such as tylosin tartrate.

III. Related Products & Policy Impacts
1. Correlated Product Prices
- Potassium Sodium Tartrate: Industrial-grade quotations in Hubei Province remain stable at RMB 24,000/ton (tax-inclusive, 25 kg/bag), sustaining elevated levels since March 2026—indicative of steady supply-demand equilibrium.
- Tylosin Tartrate: Affected by shortages of soybeans and soybean oil, its price is expected to rise by 5–10% in May 2025, illustrating the cost-pass-through effect from raw material inflation onto tartric acid derivatives.

2. Policy & Environmental Pressures
- The Ministry of Ecology and Environment included tartrate salts in its 2025 Priority List for Clean Production Audits, accelerating technological upgrading and green transformation across the sector.
- Import dependency has declined sharply—from 45% to below 15%—signifying strengthened domestic substitution capacity. However, small-batch imports remain necessary for advanced pharmaceutical formulations due to ongoing R&D gaps.

IV. Analysis & Outlook
1. Short-Term Outlook (1–3 months)
- Price Stability: Industrial-grade tartric acid prices are expected to remain stable, supported by balanced supply-demand fundamentals—though regional logistics costs and payment-term-related financing expenses warrant close monitoring.
- Pharmaceutical-Grade Price Increase: Growing demand for high-purity grades and rising environmental compliance costs may drive modest price hikes of 3–5% for pharmaceutical-grade tartric acid.

2. Medium-to-Long-Term Outlook (1–3 years)
- Market Expansion: China’s potassium sodium tartrate market size is projected to exceed RMB 630 million in 2026, maintaining an approximate 9% compound annual growth rate (CAGR), driven by sustained growth in food & beverage, pharmaceuticals, and emerging application areas.
- Technological Upgrading & Cost Optimization: Bio-fermentation will become the dominant production route, though scale-up bottlenecks must be addressed. Green synthesis technologies will further optimize cost structures, supporting long-term price stability or even slight declines.

3. Risk Factors
- Raw Material Price Volatility: Fluctuations in key raw material prices—driven by supply-demand dynamics and energy costs—may compress profit margins.
- International Trade Barriers: Adjustments in tariffs under the RCEP framework, alongside rising environmental compliance costs, necessitate continuous policy monitoring.
- Intensified Market Competition: Leading enterprises are consolidating market leadership through economies of scale; smaller players face heightened risks of acquisition or market exit.