Polyvinyl Alcohol Following the Trend of Acetic Acid in China and Germany
- 24-Jun-2022 5:25 PM
- Journalist: Kim Chul Son
Hamburg, Germany: Recently, the Polyvinyl Alcohol price trend has been observed tracing the path of its upstream Acetic Acid in China and Germany. Vinyl Acetate Monomer (VAM) is the feedstock of Polyvinyl Alcohol, which in turn gets manufactured from Acetic Acid. Like the Acetic Acid ongoing trend, Polyvinyl Alcohol has been declining in the Chinese domestic market and marginally been rising in Germany. After witnessing the trends mentioned above, it can be said that the upstream cost is the major factor dominating Polyvinyl market sentiments.
The consistent supply rate of acetic acid in the market is the leading cause sustaining this significant reduction in price value, which has been occurring in the Chinese market. Even though some factories are undergoing maintenance, others are successfully meeting demand. Another factor contributing to the drop in the price of acetic acid is the weak downstream demand from the food, beverage, paint, and pharmaceutical industries. Furthermore, the general buying momentum and falling trade frequencies have also been causing the decrement in Acetic Acid prices. Likewise, the Polyvinyl Alcohol prices have been going downwards amidst slumping upstream costs, eventually reducing its manufacturing cost.
On the contrary, the supply of Acetic Acid has been hampered in the USA amidst Force Majeures declared by major manufacturers such as Celanese and INEOS. The scenario has been resonating in Europe and continues to apply pressure to the already constrained Acetic Acid sector. Customers are willing to purchase large quantities of Acetic Acid, which is driving up the price of Acetic Acid in the local European market in contrast to the market's hesitant supply. Furthermore, the declining supply of Acetic Acid has been impacting Vinyl Acetate Market (VAM), which in turn has been putting its impact on Polyvinyl Alcohol prices.
As per ChemAnalyst anticipations, "For the upcoming 1 or 2 weeks, the Polyvinyl Alcohol market would keep declining in China and would attain stability or be rising peripherally in the German domestic market.”