Acetic Anhydride prices continue to accelerate in the global market
- 25-Mar-2022 2:03 PM
- Journalist: Patrick Knight
Soaring feedstock Acetic Acid prices surged the Acetic Anhydride market with increased transportation costs from China to other Asian countries. As of 11 March, the price of Acetic Anhydride surge d to USD 1275/ton, increasing 20.62% from the product prices observed on 4 March, which was USD 1057/ton. With rising crude oil and Natural Gas prices due to the Russia-Ukraine conflict, the product’s supply thinned with deteriorating market sentiments in the regional market. The fermentation of the energy crisis in China and the increasing upstream Methanol market drove the Acetic Anhydride market in China. Several turnarounds of feedstock Acetic Acid in the region affected the market. On 11 March, the Acetic Acid unit plant turnaround at Shanghai Wujing Chemicals with a production capacity of 450KMTPA. The turnaround was conducted to increase the plant efficiency and maintenance, which also impacted the price of Acetic Anhydride.
In other regions, namely, Europe and the US, Acetic Anhydride's market is tight with increasing upstream Natural Gas prices and surging demand from its downstream dyes industries. Growing demand for organic colors and pigment improves major producers' sales and revenue. Lower production rates with unprecedented issues with securing crude and feedstock affected the market resulting in price hikes. Increasing sanctions on Russia, soaring the transportation cost, and limited shipments also boost the market.
According to ChemAnalyst, the price of Acetic Anhydride will increase in the global market with the growing conflict of Russia-Ukraine affecting the upstream Natural Gas prices. Logistics constraints and accelerating transportation costs will result in price hikes. Several turnarounds due to plant maintenance are expected to create a supply-demand gap pressurizing the significant producers to fulfil the consumer’s demand.