For the Quarter Ending June 2023

North America

The prices of Acetic Acid have shown a sharp decline at the beginning of the quarter and then prices have declined with slower rate during the second half of Q2. This was mostly due to economic uncertainty amid high inflation and rising interest rate to control inflation which led to a decrement in demand from the downstream industries like VAM, Acetate, and Anhydride. Additionally, the plants were operating at slower rates due to weak demand from the downstream industries. Furthermore, the feedstock methanol had limited cost support, as signified by Methanex’s monthly Methanol contract prices. In Addition, there were limited order inquiries from the downstream industries. What is more, there was a significant decline in the prices of Natural gas at the beginning of the quarter since there has been a price recovery in the market, which led to a decrement in input production cost. Moreover, demand from the international market declined in the quarter due to global economic uncertainty and slow economic recovery. Thus, as of June 2023, prices of Acetic Acid in the US were stated at USD 740/MT FOB Texas.

Acetic Acid Prices: https://www.chemanalyst.com/Pricing-data/acetic-acid-9

APAC

The prices of Acetic Acid showed a bearish market trend in the first two months of the quarter, and then the prices increment in the final month of the quarter in South Korea. First two months, decremented was due to less demand from the downstream industry, and demand recovered slowly in the final month, explaining the slow increment in price. The prices of Acetic Acid have shown variable trends in the months of the quarter in the Chinese market. In the first month of the quarter, the prices declined sharply, then in the second month of the quarter, prices made a recovery, and in the final month of the quarter, prices remained stable. The sharp decline in starting this was due to a sudden decrement in demand from the downstream industry like VAM, Anhydrides, and Acetates. In terms of Domestic production, at the staring of the quarter, plants were operating lower rates due to weak demand from the downstream industries like VAM, Acetate, and anhydrides which lead to led to lower inventory levels in the market, so the prices of Acetic acid recovered in the second month of the quarter and in final month prices were stable due to adequate level of inventory to meet downstream demand. Moreover, the prices of feedstock methanol declined, as stated by Methanex, which led to an overall pessimistic market Acetic Acid market. Furthermore, the slow economic recovery in China due to the slowing manufacturing sector and the deflation problem subdued market growth. Therefore, the prices of Acetic Acid in the South Korean market as of June were stated at USD 461/MT FOB Busan.

Acetic Acid Prices: https://www.chemanalyst.com/Pricing-data/acetic-acid-9

Europe

Throughout Q2, prices of Acetic Acid had a bearish market trend in the Netherlands. This was due to continued high inflation amid rising interest rates to curb inflation rates created pessimistic market sentiments, which led to a decrement in demand from the downstream industry. Additionally, PMI for the second quarter remained below 50, indicating a contraction in the manufacturing sector in the whole quarter of Q2. In Addition, the plants were operating at a normal rate with an adequate level of inventories in the domestic market. Moreover, there was an overflow of cheap imports from Asia in the market amid declining demand from the downstream industry, like PVOH, VAM, and anhydride. Furthermore, due to continuous declining prices, downstream buyers hesitated to procure large orders. Additionally, there were riots and looting in France; cities including Nanterre, Marseille, and Lyon were looted. We are assessing the impact of these riots on the French market. Thus, as of June, Acetic Acid prices in the Netherlands decreased to USD 1019/MT FD Rotterdam.

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