Acetic Acid Price in Asia on an Upward Trajectory After Falling Last Month
- 13-Sep-2021 12:40 PM
- Journalist: Xiang Hong
The prices of acetic acid in Asia have finally started to stabilize since the prices were falling sharply last month. The overall trend is stable amid some slight regional ups and downs. Acetic acid prices after having fallen to $1151 per tonne in July, further falling to $1051 per tonne in August last week have started to stabilize with the prices at $1064 per tonne in mid-September.
The prices are expected to rise further as China will be carrying out environmental protection inspection for the next 25-30 days. This might cause lower operating rates and plant outages which is expected to have a pressure on the supply side hence the prices will tend to move upwards.
The demand from the downstream vinyl acetate monomer (VAM), which is used in paints, adhesives, textiles, paper, films and chewing gum is also firm in the region which will help in further stabilization of the prices.
Acetic acid is an organic compound and is a major chemical intermediate. The chemical has application in various end user industries such as textiles, inks, rubbers, plastics, and others. The major downstream products for Acetic acid are vinyl acetate monomer (VAM), Purified Terephthalic Acid (PTA), Acetic Anhydride, and Ester solvents (ethyl acetate & butyl acetate). The global demand for Acetic acid stood at around 17 million tonnes in 2020 and is expected to grow at a healthy CAGR of around 5% in the upcoming years.
As per ChemAnalyst, “the prices of Acetic Acid in Asia which are on a stabilizing trend are expected to further rise for the remainder of the current month. With the upcoming environmental protection inspection in China and firm downstream demand, the prices will tend to cross the mid-September mark the next month.”