Acetic Acid Prices are Plummeting in Asia Due to Surplus Supply
- 18-Jul-2022 3:35 PM
- Journalist: Li Hua
Shanghai, China: The Acetic Acid value is declining again in China's market during the second week of July. A considerable fall in Acetic Acid pricing was unexpected given the worldwide market's numerous uncertainties and the closures of China's acetic acid production facilities. However, the acetic acid market has been falling for the past week. The leading cause of Acetic Acid's price decline in China is the destocking of available inventories.
Acetic Acid inventories were building up in the warehouses because of many supply chain disruptions and insufficient downstream demand. As the last quarter has ended, Manufacturers are scrambling to get rid of their existing inventories to start their production for the next quarter. Manufacturers are okay with selling their goods for less to eliminate the plentiful reserves. As a result, Acetic Acid's market value has declined in the local market.
Furthermore, the Indian market is likely to follow the Chinese Acetic Acid market trend, given that China is one of the major exporters of Acetic Acid to India. As supply disruptions improve daily, the Indian market is starting to replicate the Chinese market. In conclusion, the market value of Acetic Acid has been falling in India for the last few days. On a daily basis, the prices are mostly stable in the Indian domestic market. However, a significant drop is an evident weekly. Likewise, the price value of other Acetic Acid derivatives such as Ethyl Acetate, Butyl Acetate, and Acetic Anhydride has been rising in the country.
According to ChemAnalyst anticipations, "The price value of acetic acid would decline in the Asian market for a few more days until the stocks get removed from the inventories, after which the prices might start climbing when the new manufacturers will start. There is a good likelihood that this will increase the cost of acetic acid derivatives such Ethyl Acetate, Butyl Acetate, and Acetic Anhydride."