US Acetic Acid Prices Continue Its Downtrend Rally in Early September 2022

Houston, Texas: During the first week of September 2022, Acetic acid prices in the US have remained persistent in their bearish rally. The latest price decline has been induced by the weakening feedstock costs and stable to weak demand fundamentals. As of the week ending 2nd September 2022, Acetic Acid prices in the USA have been assessed at USD 1480 per MT on a FOB basis.

Feedstock Methanol prices have also fallen in the US market as key producer Methanex decreased Methanol contract prices by close to 2%. The spot market has also mirrored the same market sentiment where Methanol prices have declined appreciably.

Acetic acid prices in the US have declined by 2.6% on a weekly basis in early September 2022.

Vinyl Acetate Monomer (VAM) has maintained stable volume intakes amid weak consumer sentiment in the US. Several market participants have reported ample supply culminating in stable inventory levels in the domestic market.

Meanwhile, supply chains remain a cause of concern, as remarked by several manufacturers and traders. Logistics problems and recent port congestions on Gulf Coast and East Coast have worsened the already weak supply chains in the North American region.

The dip in international demand has further deteriorated the pricing sentiment in the US market. Europe has been a key destination for US Acetic acid; however, soft consumer sentiment in the European countries has curtailed US Acetic acid exports. North Western Europe has been facing its worst economic circumstances as several countries in Europe stand at the cusp of a recession.

According to ChemAnalyst, “Acetic acid prices are likely to follow a downtrend in the coming weeks owing to sluggish feedstock costs and weak demand in domestic and international markets. However, Acetic acid prices may change the balance in the coming quarter as demand from downstream industries is likely to strengthen, prompting an optimistic price change. ”