Global Monochloroacetic Acid Prices Plunge due to Subdued Demand and Low Feedstock Cost
- 11-Nov-2022 3:35 PM
- Journalist: Timothy Greene
Monochloroacetic Acid prices witnessed a downward trend across the globe during the first week of November 2022 in the wake of weak upstream costs. The high inflation rate, gloomy demand, and shutdown in China have obstructed the market growth of Monochloroacetic Acid.
Monochloroacetic Acid prices dropped in the Chinese market owing to the weak demand from the end-user agrochemical and other value chain sectors. On the raw material side, Acetic acid and Acetic Anhydride prices declined, which supported the current price trend of Monochloroacetic Acid. Moreover, the strict Covid containment approach in the domestic region and the dropping upstream crude oil prices due to fear of recession and dampened demand have deteriorated the market sentiments for Monochloroacetic Acid. On the contrary, the number of infected Covid cases has been rising in China, resulting in more preventive measures, pressuring the demand outlook for the product. According to the data, China's trade activities obscured in October 2022, with exports and imports contracting amidst a global economic slowdown and strict Covid curbs taking a toll.
As a result, prices of Monochloroacetic acid were settled at USD 560/MT with a marginal inclination of around 1.8% on 4th November 2022.
Similarly, prices of Monochloroacetic Acid plunged by 6.2% and 6.0% in the German and Belgium market, respectively, backed by the low feedstock Acetic acid and Acetic Anhydride cost. Also, the domestic production cost has slightly eased amid stable energy prices. While imported Monochloroacetic Acid cost has also remained comparatively lower than the domestic prices as prices fell in the Asia-Pacific region. On the other side, demand from the downstream agrochemical, dyes, and allied industries has remained lackluster as consumer sentiment remains sluggish in the regional market. According to info Business, the climate index dipped from 84.4 points to 84.3 points in October 022 compared with the previous month. In addition, supply chain dynamics have improved in the European continent with no major port congestions along with improvement in Rhine water levels. Thus, accelerating the availability of imports and inter-European transportation, respectively.
Hence, in Germany, prices of Monochloroacetic Acid were settled at USD 1365/MT during the same time frame.
According to ChemAnalyst estimation, "prices of Monochloroacetic Acid will further drop in Asia and European markets during the upcoming weeks due to slow demand from the end-user agrochemical and other industries. Meanwhile, feedstock Acetic Acid and Acetic Anhydride prices will expect to decrease, which may reduce the cost pressure of Monochloroacetic Acid."