Acetic Acid Prices Decline Further in the USA; October Outlook Appears Optimistic
- 28-Sep-2022 3:41 PM
- Journalist: Gabreilla Figueroa
Houston, USA: In the USA market, Acetic acid prices have continued their Southward journey throughout the month of September 2022 on the back of weak feedstock prices and stable demand dynamics. However, the Acetic acid market shift balance in the coming quarter as several market participants expect a change in the demand fundamentals in the coming month.
Feedstock Methanol prices dropped for the second consecutive month in September 2022, culminating in weakened cost pressure on Acetic acid. Meanwhile, demand from downstream Vinyl Acetate Monomer (VAM) and other value chains remained under pressure. Demand for acetates has also remained stable amid ample inventory levels as the volume intakes from downstream Automotive and other end-use industries remained stagnant.
As of 23rd September 2022, Acetic Acid prices in the USA were assessed at USD 1325/MT on a FOB basis, measuring a decline of approx. 3% on a weekly basis.
In the USA, Acetic acid prices have deteriorated consistently since the second half of July 2022, and the prices have fallen close to 16% in the last couple of months.
Declining crude oil prices and recent stability in Natural gas prices have further eased the cost of production amid declining feedstock costs. Crude oil prices have fallen sharply in the last two weeks after hovering in the mid-80s to early 90s. WTI crude oil prices have dropped to USD 77/b as of 27th September 2022.
However, the demand for Acetic acid may shift the balance in the upcoming month, which may prompt the market participants to increase Acetic acid prices in the USA. Traditionally, it has been observed that demand for several petrochemicals, including Acetic acid rises ahead of the holiday season for the last time before declining for the remaining part of the year.
According to ChemAnalyst, “Acetic acid prices in the US may witness an uptrend in October 2022 on the back of strengthened demand fundamentals and stable supply dynamics.”