Germany’s Monochloroacetic Acid Prices Hold Steady in Early May Amid Trade Uncertainty
- 08-May-2025 5:45 PM
- Journalist: Joseph Dennie
Monochloroacetic acid prices in Germany held rangebound during the first week of May 2025, backed by stable feedstock costs and sturdy supply chain. Domestic production ran smoothly at typical utilization rates, while declining freight rates sustained competitive import flows, particularly from the U.S. Despite these stable fundamentals, market activity remained sluggish due to muted demand across key downstream segments, including agrochemicals, surfactants, and carboxymethyl cellulose (CMC). While FMCG-related applications provided marginal support, economic caution and concerns surrounding U.S.–EU trade tensions limited buying momentum and kept prices in a stable range.
Supply conditions for Monochloroacetic Acid in Germany remained well-balanced, with plants operating around 85% of capacity. The Monochloroacetic Acid cost of production eased modestly following a EUR 75/MT drop in Methanex’s April contract upstream methanol price to EUR 625/MT, supporting stable margins for acetic acid—and by extension, Monochloroacetic Acid. Chlorine availability remained uninterrupted, facilitating steady output. Additionally, logistics efficiency improved as freight rates from both North America and Asia declined, maintaining a competitive edge for U.S.-origin imports. However, the ongoing U.S.–EU trade discussions have introduced a degree of uncertainty, with buyers and importers closely evaluating potential tariff impacts on sourcing and future Monochloroacetic Acid pricing dynamics.
The Monochloroacetic Acid demand from the downstream industry has remained subdued across various sector leading to slower product inquires. Agrochemicals: Seasonal demand for herbicides and pesticides remained softer than expected, with cautious offtake reflecting high inventory levels and limited visibility on Q2 application volumes. Buyers largely avoided forward bookings, preferring to wait for clearer signals from the field.
CMC & FMCG: Demand from the CMC sector—driven by applications in detergents, food stabilizers, and personal care—remained steady, offering baseline support to the Monochloroacetic Acid market. Rising retail activity and modest gains in FMCG output helped stabilize Monochloroacetic Acid consumption, though buyers continued to adopt tactical purchasing strategies amid ongoing economic uncertainty.
Pharmaceuticals & Surfactants: Procurement from the pharmaceutical segment remained flat, constrained by regulatory burdens and cost-control measures across Europe. Surfactant demand was similarly subdued due to slow industrial activity and weak export-driven consumption. The lack of strong end-use recovery in these segments further contributed to the overall conservative purchasing sentiment. Thus, the prices of Monochloroacetic Acid were stated at USD 540 per MT FOB Hamburg.
As per Chemanalyst Database, the price of Monochloroacetic Acid is expected to remained low in the upcoming weeks of May. This development is expected with adequate stocks in the market. Furthermore, the Monochloroacetic Acid demand from the downstream industry is expected to remain subpar leading to slower product inquires.