Monochloroacetic Acid Prices Face Upward Pressure Backed by High Upstream Costs

Monochloroacetic Acid prices increased in the Indian market for the current week due to robust demand from the end user industries and tight supply of the product. Also, the prices for feedstock Acetic Acid were observed to be on an upward trajectory after falling for a few weeks. During the second week of January Acetic Acid prices settled at INR 79430/MT Ex-Kandla. The downstream manufacturing facilities' margins were lowered due to limited availability of the feedstocks Acetic Acid and Liquid Chlorine. Monochloroacetic Acid (MCAA) Ex-Works prices increased from INR 92000/MT in December to INR 96700/MT in January, continuing the upward trend.

Anaven, which has a monopoly on the Monochloroacetic acid (MCAA) market in India, was heard positively modifying its rates to protect its profit margins from the steady rise in Acetic Acid prices. As MCAA is primarily imported from China, increased freight expenses due to a container shortage, combined with high coal and natural gas prices added to the cost pressure on the downstream products.

Monochloroacetic acid (MCAA) are available in forms of Dry powder, liquid, and pellet in the market. The goods are used in a variety of industries, and pressure from downstream segments climbed as demand from the personal care, food, and pharmaceuticals sectors remained stable.

According to ChemAnalyst , “The production prices of Monochloroacetic Acid would be experiencing fluctuations in petroleum prices on the back of rising demand and constrained supply. Furthermore, a multi fold increase in Monochloroacetic Acid prices was prompted by increased pricing of critical feedstocks Acetic Acid and Liquid Chlorine. As China is entering into the holiday season, supply constraints are likely to be observed in the next few weeks, which will impact the pricing. As long as demand continues strong, producers are hopeful about the future.”