Acetic Anhydride Prices Poised Negatively by Feedstock Acetic Acid Costs in the US and German Markets
- 30-Nov-2023 4:21 PM
- Journalist: Jai Sen
In the US market, Acetic Anhydride prices have demonstrated stability this week. This trend can be attributed to the decrease in Acetic Acid prices and a notable surplus of inventories within the market. A decline in the inflation rate further supports the positive market development. The ample inventories have prompted competitive pricing, contributing to the overall stability of Acetic Anhydride prices. Moreover, the subdued demand from the downstream laundry industry has played a role in limiting the growth of the Acetic Anhydride market in the US, as evidenced by a lower level of demand from this sector.
In the German market, Acetic Anhydride prices have exhibited a resilient stance. Concurrently, stability in demand has been observed from downstream industries, such as the laundry sector, this week. However, the persistent high-interest rate has continued to exert pressure on the purchasing capacity of consumers in these Acetic Anhydride downstream industries. This economic factor, set at 5.25%, has notably weakened demand, particularly in the construction segment. Furthermore, the prices of imports, particularly from the Chinese market, have experienced a decline. This can be attributed to a sharp dip in the prices of the feedstock Acetic Acid, eventually translating downstream to impact the prices of Acetic Anhydride. As China is a prominent importer of Acetic Anhydride in Europe, the overall decline in prices in the European market has influenced the pricing dynamics in Germany.
As per the ChemAnalyst database, projections indicate a forthcoming decline in Acetic Anhydride prices in the US market, driven by ongoing destocking activities. The anticipated sustained lower prices of Natural Gas from the energy sector are also expected. However, a reversal in this trend is foreseen in the second half of January, with an anticipated recovery in prices. This recovery is attributed to heightened market transactions and the expected rise in the prices of feedstock acetic acid. The positive trajectory is anticipated to continue into February, fuelled by increased demand from downstream industries. Similarly, in the German market, the outlook suggests a decrease in Acetic Anhydride prices. This decline is attributed to both destocking activities in the market and diminished demand from Acetic Anhydride downstream industries such as laundry industries. Furthermore, a reduction in import prices from the Chinese market contributes to the overall downward trend. The second half of January is expected to witness a decrease in Acetic Anhydride prices, adding to the dynamics shaping the market. This trend is likely to continue in February with increased transactions and higher feedstock Acetic Acid prices.