Weak Downstream Demand Weighs Down the Monochloroacetic Acid Prices in the USA and Germany

For a long time, the Monochloroacetic Acid market has been on the rim of uncertainties, including mounting recession and ongoing energy crisis in the USA and European region. As per the ChemAnalyst latest database, prices of Monochloroacetic Acid have dropped in the US and Europe markets during September 2022, backed by weak domestic and international demand.

As per the data, Monochloroacetic Acid prices have plunged by around 3.1%, 3.6%, and 3.0% in the Netherland, Germany, and Belgium, respectively, in the wake of bearish demand from the downstream Agrochemical and other allied industries. As per the market sources, manufacturers have sufficient inventories to cater to the overall market demand. In addition, surging natural gas prices have been a major concern for European players since Russia cut its supply to north-western Europe. Although, the European countries governments have been preparing themselves for winters by stocking natural gas for future needs, which will further reduce the prices of Natural gas during the upcoming winter.

Meanwhile, in the USA, demand for Monochloroacetic Acid from the downstream Agrochemical industries has remained lackluster, which resulted in the price fall across the regional market. On the Raw material front, Acetic Acid and Acetic Anhydride prices have also decreased. In addition, LyondellBasell, a major producer of raw material Acetic acid, has recently announced a drop in the operating rates in order to avert oversupply in the market. Furthermore, the Producer Manufacturing Index (PMI) has been weakening for a year, contributing to a significant fall in demand. Hence, as a result, Monochloroacetic Acid prices have declined by 2% during the same time frame.

According to the ChemAnalyst estimation, “Monochloroacetic Acid prices will expect to rebound in the USA and European market owing to improved demand from the downstream Agrochemical and pharmaceutical industries. At the same time, Acetic feedstock acid and Acetic anhydride costs may also increase, which further impacts the pricing dynamic of Monochloroacetic Acid”.