The Asia-Pacific acetic acid market displayed a split trend, with China supported by steady exports and firm downstream demand, while India saw gains from currency weakness and active purchases. Chinese production held strong despite multiple plant shutdowns, aided by high operating rates and stable inventories. India’s supply remained steady with smooth port operations and consistent imports. Demand in China was moderate, led by PTA and coatings sectors, while India saw stronger pull from pharmaceuticals, PTA, and pigments, offset by weaker performance in some derivatives. Ongoing currency fluctuations, seasonal consumption, and typhoon-related logistics risks are set to influence near-term market sentiment.
Acetic acid prices in the Asia-Pacific market showed light positive momentum this week, with China’s FOB Qingdao values edging, supported by steady exports and firm downstream procurement, while India’s Ex-Kandla prices climbed. In India, the price lift was primarily driven by INR depreciation against USD and active purchases from a major acetyls producer, diverging from softer international benchmarks where late-August FOB China offers dipped by USD 5/MT to USD 280/MT. Across the region, ample availability and smooth port operations kept supply stable, while seasonal demand from PTA, dyes, and pigments provided consistent support, even as global sentiment remained weighed by tariff pressures and subdued coatings demand.
In China, acetic acid output remained resilient despite a series of scheduled maintenance shutdowns at major producers through July. High domestic operating rates, combined with active shipment schedules and stable inventories, ensured sufficient supply. Short-lived port disruptions in Shanghai and Ningbo due to typhoon activity briefly pushed vessel waiting times to three days before easing, though 184 ships were still anchored. India also reported strong acetic acid production as key local manufacturers lifted operating rates, complemented by consistent import arrivals from China and other origins. The absence of BIS restrictions and resolved jetty congestion at Kandla and Mumbai helped maintain smooth inbound logistics, while currency-driven landed cost pressures prompted selective restocking by traders.
On the demand front, Chinese acetic acid consumption remained moderate, with PTA plants running at roughly 80% utilization. Paints, coatings, and Acetic Acid’s derivative sectors showed steady but unspectacular activity, while low PTA margins could trigger additional maintenance in August, slightly curbing near-term consumption. In India, the pharmaceutical sector’s acetic acid usage was supported by its exemption from the recent 26% reciprocal U.S. tariff, safeguarding production in bulk drugs and Acetonitrile units, though the exemption’s review status keeps market sentiment cautious. Seasonal buying from PTA, dyes, and pigments continued to underpin domestic offtake, while Ethyl Acetate, Acetic Anhydride, and MCAA segments remained softer. Demand for n-Butyl Acetate and n-Propyl Acetate picked up, driven by strong performance in the printing ink and packaging industries. Acetic acid prices in China edged higher, rising from USD 321/MT to USD 326/MT.
Acetic acid Export flows between China and India stayed strong, with Indian procurement helping offset softer demand from other Asian buyers. With India’s monthly acetic acid requirement hovering around 165 kt and still heavily reliant on imports, opportunistic buying is expected to persist. Regional risks, including typhoon-season freight delays and currency volatility, will likely shape acetic acid price movements through the remainder of Q3 2025.
