Crashing demand, fluctuating feedstock chips away the prices of Acetic Anhydride in Asia
- 22-Apr-2022 3:50 PM
- Journalist: Li Hua
The price of Acetic Anhydride fell in the Asian market, prompted by weaker upstream Methanol rates and continuous sluggish demand trends in the region. Lower exports further supported the price drop offers to the overseas suppliers. In China, the price of Acetic Anhydride on 22 April slipped to USD 1265/ton FOB Qingdao with a weekly declination of 1.17%. Weak market sentiments along with crushed demand from downstream fibres and plastics resulted in such a bearish trend. The prices of feedstock Acetic acid fluctuated and fell this week, showcasing deterred cost support. China’s Petrochemical demand was chipped away with surging port congestions in East China amid stifling Covid cases and supply chain disruptions. The rising cost of imported Methanol from Saudi Arabia and Russia, the decline in domestic demand for Acetic Anhydride, and the sharp reduction in export volume remained the three primary factors affecting the low operating rate of local refiners in China.
In India, the price of Acetic Anhydride remained tepid with moderately operating enterprises. The key driving factor for the Indian roofing chemical industry is the growing need for downstream plastic and fibre industries. The India-Australia Free Trade Deal will accelerate the Pharma and Plastic industries in the forecast period. The increase in gas prices from April 1 by various Natural Gas producers impacted the Petrochemical market in India. On 22 April, the cost of Acetic Anhydride in the Indian market surged to USD 1978/ton Ex-Mumbai with a weekly inclination of 0.7%.
According to ChemAnalyst, the prices of Acetic anhydride will slip further in the upcoming weeks due to sufficient supply and tepid demand from downstream plastic industries. Despite firmer upstream energy and Naphtha values, the producers will trade the product according to the consumer’s need. Port congestions in China will limit the exports of Acetic Anhydride to other Asian countries, which will increase the inventories at the ports, affecting the price trend. However, logistics constraints and the surging Natural Gas market will keep the Asian Petrochemical market hooked.