Monochloroacetic Acid prices emerging in the Global market
- 05-Apr-2022 12:07 PM
- Journalist: Patrick Knight
Monochloroacetic Acid prices increased in the global market due to robust demand from the downstream pharmaceutical industries. The prices for Feedstock Acetic acid were shown to be on an upward trend during the start of April. The downstream production activities were impacted due to the limited availability of the Feedstock Acetic acid. Monochloroacetic Acid, also called Chloroacetic Acid, is utilized in the pharmaceutical industries to synthesize Ibuprofen, barbiturates, Epinephrine, and other drugs and intermediates.
In China, the prices of Monochloroacetic Acid increased due to forced restrictions in major cities due to Covid cases resurgence, and the implementation of the ‘zero-covid policy’ in some regions of China caused sluggish production and trading activities. The soaring demand from the pharmaceutical industry also had an influence on the inadequate supply from manufacturers and an increase in the raw material prices, which resulted in the high prices of Chloroacetic Acid.
In India, the prices of Monochloroacetic Acid (MCAA) Ex- Bhiwandi were assessed at INR 112580 /MT with around 3% month-on-month inclination in April. Strong demand for MCAA from the end-user pharmaceutical industries has been emerging lately with the demand for downstream derivative Sodium Mono Chloro Acetate and Ethyl Acetate market increasing further. Limited supply, surging demand, and concerns over sky-high inflation have taken MCAA to new highs in the Indian market. In addition, MCCA is primarily imported from China, which led to the increased freight charges owing to the container shortage combined with high coal and natural gas prices added to the cost pressure on the downstream products.
Due to the hovering concerns over new coronavirus strain and energy shortage in Europe, MCCA availability in the U.S remained limited due to constraints on international shipments along several trade routes in Southeast Asia. Progressively increased prices for feedstock Acetic acid also played a substantial role in constraining supplies.
As per ChemAnalyst, “The prices of Monochloroacetic Acid are likely to increase due to rising demand from the pharmaceutical sectors and constrained supply. In addition, high prices of feedstock Acetic Acid may result in the increased price of Monochloroacetic Acid in the global market”.