Monochloroacetic Acid Prices Witness Mixed Sentiments in Asian Market
- 13-Jun-2022 5:16 PM
- Journalist: Shiba Teramoto
Monochloroacetic Acid prices demonstrate a downward trend in the wake of dwindling demand from the downstream sectors. Demand for Monochloroacetic acid in the Agrochemical, Cosmetics, and food sectors remains weak. Overall inventory level has been mostly elevated, which has coincided with supply disruption.
Moreover, it is also tricky to see a substantial boost in domestic demand as manufacturers have just recently begun operating their units because of alleviating lockdown limitations.
Additionally, Downstream manufacturer has revived their production. However, the overall plant production level is low amidst the slow resumption of work coupled with the labour shortage in the domestic market.
Besides, the decline in the Monochloroacetic Acid prices was also attributed to the volatility in the crude oil prices, which has impacted the raw material cost, notably Acetic acid, in the Chinese market.
Furthermore, the bearish market of Monochloroacetic Acid reveals the extent to which the Chinese economy has lost pace due to prolonged lockdowns in some of its major commercial hubs, notably Shanghai, the world’s largest port, which has been under severe disruption since March.
As per the latest insight, several manufacturers were seen revising their June prices because of abundant material availability and low offtakes from the end-user sectors. Several downstream manufacturers of Monochloroacetic Acid have reduced their quotation on the 10th of June. As a result, the prices of Monochloroacetic Acid declined by 2.4% in the preceding weeks.
However, a trader revealed that the market prices of Monochloroacetic Acid showcased stability in the Indian market owing to the stable offtakes from the downstream sectors. Likewise, due to the existing stockpiles, the downstream manufacturer must meet their needs. Therefore, the prices of Monochloroacetic Acid were inclined slightly by 1.0% in the previous weeks.
According to ChemAnalyst estimation stated that “Monochloroacetic Acid prices are likely to surge in the forthcoming weeks due to further raise in the raw material cost particularly Acetic acid. Also, the expanding Agrochemical, as well as Cosmetics sectors, supported by increasing pharmaceutical sector, will rise the market of Monochloroacetic Acid from the chemical industry.”