For the Quarter Ending March 2024
North America
Acetaldehyde prices have witnessed a bearish trend in the US market during the first quarter of 2024 in the wake of low raw material prices and weak demand dynamics. The reduction in inquiries from the downstream preservative industries was responsible for the price shift observed in the price realizations of Acetaldehyde.
The market has been in a depression in customer demand amid challenging macroeconomic conditions across the globe. Furthermore, the weaker economic conditions brought on by inflationary pressures have faltered the growth of the manufacturing sectors and as a result, the manufacturing Purchasing Manager Index remained in the contraction zone (Below 50 Points).
In addition, the cost support from feedstock Ethanol was limited on Acetaldehyde as its prices settled on the lower end throughout the quarter, contributing to the downward shift in the price realization of Acetaldehyde in the domestic market. Furthermore, the material availability was sufficient to meet the downstream demand which further weighed down the prices of Acetaldehyde in the domestic market.
Asia Pacific
Prices of Acetaldehyde have persistently decreased in the Indian market during the first quarter of 2024 as markets were reportedly flooded with low-priced cargoes, which were mostly Chinese shipments. However, feedstock Ethanol prices have showcased volatility throughout the quarter. In addition, demand for Acetaldehyde from the downstream preservative has been moderate due to the steady consumption from the food and preservative industry. Apart from this, India's retail inflation eased to 4.85 percent on an annual basis in March as against 5.09 percent in the previous month. The number has remained within the Reserve Bank of India's (RBI) tolerance band of 2-6 percent. The drop-in inflation rate has alleviated the purchasing power of consumers. Furthermore, the imports from the Chinese market have turned cheaper which resulted in the low imported prices of Acetaldehyde in the Indian domestic market. On the other hand, the recent tension in the Red Sea crisis has had a limited impact on the supply of Acetaldehyde. Overall, the material availability was sufficient to meet the existing downstream demand. Thus, foreseeing the oversupply and steady downstream demand promoted the sellers to operate their prices at a low level in the domestic market.
Europe
Acetaldehyde prices have witnessed mixed sentiments across the European market during the first quarter of 2024. During the first half of 2024, Acetaldehyde prices have inched lower in the Spanish market. The demand for Acetaldehyde from the downstream preservative industry was average in the domestic market. The consumption of preservatives from the end-user food and beverages industry has been soft amid off-season dullness which weighed down the prices of Acetaldehyde within the domestic market. Furthermore, the persistent inflation and high interest have eroded the purchasing power of end-users, further dampening the market sentiments of Acetaldehyde. However, in the second half of 2024, Acetaldehyde prices recovered as prices increased in the exporting market. In addition, demand for Acetaldehyde from the downstream preservative industry has started to improve as consumption from the food and beverage sector has increased, contributing to the upward shift in the price realization of Acetaldehyde. Furthermore, the import from the German market has turned costly amid tight supply coupled with high production costs which resulted in the high imported prices of Acetaldehyde within the domestic market. Moreover, the material availability was limited to meet the existing downstream demand which further boosted the prices of Acetaldehyde in the domestic market.
For the Quarter Ending December 2023
North America
Acetaldehyde prices have witnessed a bearish rally across the US market throughout the fourth quarter of 2023. The cost pressure from feedstock Ethanol was limited on Acetaldehyde as its prices settled on the lower end throughout the quarter. On the demand front, the inquiries from the preservative industry have been tepid with limited instances of new orders reported by market players. Market participants report consumption of preservatives from the end-user food and beverages sector has slowed down in the wake of null season demand which weighed down the prices of Acetaldehyde in the domestic market. Furthermore, macroeconomic headwinds like persistent inflationary pressure and high-interest rates have further eroded the purchasing power of end-users.
In the meantime, demand from the overseas market has also been soft in recent months as macroeconomic challenges continue to keep consumer spending at bay. In addition, US Acetaldehyde producers face difficulties in raising export prices as buyers find it difficult to stomach. Consequently, prices have operated at a low level.
In terms of production, the manufacturing firms have been operating at reduced rates as demand from the downstream industry has not recovered yet. Despite this, material availability was sufficient to cater to overall downstream demand. Since the start of Q4, the US manufacturing purchasing manager index has remained in the contraction zone (i.e., below 50) indicating a deterioration in new orders and output. Apart from this, the turmoil in the Red Sea along with the prolonged drought in the Panama Canal has had a minimal impact on the supply of Acetaldehyde.
Asia-Pacific
Acetaldehyde prices have continued to decline in the Chinese market during the fourth quarter of 2023. China has been grappling with sluggish foreign trade amid slack global demand and a stalled recovery, despite the country's reopening after its strict COVID-19 controls were lifted late last year. The feedstock Ethanol prices have been stagnant throughout the quarter which resulted in the stable production cost of Acetaldehyde in the domestic market. In addition, the demand for Acetaldehyde from the downstream preservative industry has been dropped due to sluggish consumption from the end-user food and beverages industry. At the same time, demand from the overseas market has also been observed on the lower end since the Federal Reserve and central banks in Europe and Asia began raising interest rates last year to cool inflation that was at a multi-decade high. As per the market sources, exports dropped from 6.4% to $ 274.8 billion indicating a weak global demand for Chinese goods. In terms of domestic production, the operating rates of Acetaldehyde manufacturing firms have remained under pressure. Furthermore, according to the National Bureau of Statistics, China's manufacturing activity contracted for the third consecutive month in December. This decline is attributed to struggling factories facing weak demand, casting a shadow over the country's economic recovery. The official purchasing managers' index (PMI) fell to 49.0 in December from 49.4 the previous month, remaining below the crucial 50-mark that separates growth from contraction. Overall, the material availability was sufficient to cater to overall downstream demand.
Europe
Acetaldehyde prices have showcased a see-saw trend in the European market during the fourth quarter of 2024. During October 2023, Acetaldehyde prices have inched higher in the Spanish market. The demand from the downstream preservative industry has increased as consumption from the food and beverages sector has improved in the domestic market. These led to the bullish market sentiments of Acetaldehyde among the manufacturers. Furthermore, imports from Germany and other exporting markets have also turned costly as prices increased in the exporting market which in turn led to high imported prices of Acetaldehyde in the Spanish domestic market. However, in November 2023, Acetaldehyde prices have unexpectedly dropped in the domestic market. The decline in the prices was majorly attributed to the weak demand from the food and beverages industry. The lukewarm demand has kept exerting pressure on the seller’s side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. Furthermore, the material availability was sufficient to cater to overall downstream demand which weighed down the prices of Acetaldehyde across the domestic market. However, demand for Acetaldehyde from the food and beverages industry has rebounded due to the festive season. So, in order to gain profit margins, traders have increased their Acetaldehyde prices during December 2023. Nonetheless, the level of finished stock of Acetaldehyde was sufficient, but it had a minimal impact on the prices of Acetaldehyde in the domestic market.
For the Quarter Ending September 2023
North America
Prices of Acetaldehyde have demonstrated a mixed trend in the North- American market during the third quarter of 2023. During the first half of 2023, Acetaldehyde prices have inched lower in the US market. The feedstock Ethanol prices have decreased, resulting in the low production cost of Acetaldehyde in the domestic market. The demand for Acetaldehyde from the downstream preservative industry has remained weak as consumption from food and beverages has slowed down, which weighed down the prices of Acetaldehyde in the domestic market. The lackluster demand has kept exerting pressure on the seller’s side as buyers either made limited purchases when needed or stayed in a wait-and-see perspective in the projection of additional decline. However, Acetaldehyde prices have gained an upward trend during the second half of 2023. The cost pressure from feedstock Ethanol was sufficient as its prices settled on the higher side in the given time frame. Furthermore, demand from the downstream industry has started to recover from both domestic and international markets, so in order to achieve better profit margins, manufacturers have raised the prices of Acetaldehyde.
Asia- Pacific
Acetaldehyde prices have persistently increased in the Chinese market during the third quarter of 2023. The feedstock Ethanol prices have been observed on the higher side, which in turn resulted in the high production cost of Acetaldehyde in the domestic market. The demand for Acetaldehyde from the downstream preservative sector has increased due to a rise in consumption from the food and beverages industry. As per the market sources, in the first nine months, food and beverage sales increased from 22.6 percent year-on-year to NT$767.2 billion, while sales in Q4 are projected to grow 11.1 to 14.1 percent to between NT$85.4 billion and NT$87.8 billion. At the same time, inquiries from overseas markets have also increased, which strengthened the prices of Acetaldehyde. In addition, the manufacturing firms were operating at high rates due to increased demand from the downstream industry. In addition, the China manufacturing Purchasing Manager Index increased from 49.7 in August to 50.2 in September, indicating an expansion in new orders. Furthermore, the level of inventories was sufficient to cater to overall downstream demand.
Europe
Prices of Acetaldehyde have witnessed a bullish rally in the Spanish market during the third quarter of 2023. The increase in the prices was attributed to high demand and limited material availability in the domestic market. Market players reported demand for Acetaldehyde from the downstream preservative industry has increased as consumption from food and beverages has escalated in the domestic market. The spot market transactions were also improved, which supported the Acetaldehyde prices to follow an uptrend in the domestic market. On the other side, according to the National Statistics Institute (INE), Spanish consumer inflation rose to 3.5% year on year in September, driven by energy costs, as food inflation remained in double digits. In addition, the imports from the exporting nation, Germany, have slowed down on the Spanish ports or market as the German market has faced labor shortages, which impacted the production and logistics activities. The availability of finished stock of Acetaldehyde was inadequate to cater to overall downstream demand, which uplifted the prices of Acetaldehyde in the domestic market. Overall, there were no port congestion was observed in the given time frame.
For the Quarter Ending June 2023
North America
Acetaldehyde prices have inched higher in the US market throughout the second quarter of 2023 due to improved buying trends. Despite the global headwinds such as high inflationary pressure, tightened monetary policies, and rising interest rates, demand for Acetaldehyde from the downstream food and beverages as a food preservative has raised in the domestic as well as from overseas markets ahead of seasonal demand, which supported the Acetaldehyde prices to follow the uptrend in the domestic market. The market transactions were relatively strong. On the upstream front, Ethanol prices have also increased, which resulted in the high production cost of Acetaldehyde in the domestic market. In addition, the operating rates have remained firm in the domestic market to match the high downstream demand. On the other side, the material availability has remained sufficient to cater to overall downstream demand. Overall, there were no port congestion or supply chain constraints were observed by the market participants in the given time frame.
Asia- Pacific
Acetaldehyde prices have decreased in the Chinese market during the second quarter of 2023, backed by moderate demand and weak feedstock prices. The highly anticipated economic revival of China following the removal of Covid-19 restrictions is not materializing as expected, resulting in a repeated deterioration of the Chinese economy. Meanwhile, the inquiries from the downstream food and beverages as food preservatives have remained stable in the domestic market. The downstream procurement was mainly based on small orders. The cost pressure from the feedstock Ethanol was also insufficient as its prices progressed in a downward trend in the domestic market. Furthermore, in the middle of June, the Dragon Boat Festival further halted trade activities in the Chinese market. In addition, some manufacturing firms also have a maintenance plan. Furthermore, the consumer price index remained unchanged in June. However, despite stagnation in inflation, policymakers in China were cautious about the possibility of prolonged slower growth because manufacturing activity has significantly narrowed in the Q2 of 2023.
Europe
Acetaldehyde prices have continued to decline in the Spanish market during the second quarter of 2023 amid moderate demand and sufficient inventories in the domestic market. The inquiries from the downstream construction plastics industry have remained on the lower side amid sluggish buying trends among the end-users, which weighed down the prices of Acetaldehyde in the domestic market. Although, demand from other sectors, such as food preservative industries, has remained moderate. The downstream procurements were mainly based on small orders. In addition, Spain's manufacturing purchasing manager's index dropped from 48.4 in May to 48.0 in June, indicating a contraction in new orders. On the supply front, the steady imports from Asia and other exporting nations have resulted in sufficient material availability in the Spanish ports. In addition, the freight charges from East Asia/ China to Europe decreased by 9% in June amid weak global demand, which weighed down the prices of Acetaldehyde in the domestic market. Furthermore, Spainssssssss's annual consumer price inflation was settled at 1.9% in June 2023, the lowest since March 2021, down from 3.2% in May, which eased the price pressure.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Acetaldehyde prices have risen consistently in the US owing to steady demand dynamics and constant rise in feedstock costs. Upstream Ethylene prices have gained momentum, which provided ample support to Acetaldehyde. At the same time, demand from downstream chemical intermediates has been largely stable while the consumption rates from the food & beverages industry have been optimum. Meanwhile, the freight charges have been stable on the US routes from Asia as well as Europe, which resulted in a steady flow of imports onto the US shores. Logistical constraints culminated in the temporary closure of the US West Coast ports of Long Beach and Los Angeles.
APAC
In the first quarter of 2023, the prices of Acetaldehyde have remained on the lower end in the Indian domestic market. The inquiries from the downstream food additive industries were moderate and did not lead to positive developments in the price realizations of Acetaldehyde. The elevated stocks of finished goods have increased the supply-side pressure. Thus, to maintain market balance, the manufacturers have opted for price adjustments. Overall, manufacturing activities have remained resilient in India owing to strong economic growth. The inflationary pressures have also dropped in late Q1, strengthening the purchasing sentiments across the country. The cost support from upstream Ethanol was insufficient, and the freight charges have been significantly decreased across the major trade routes of Asia. Consequently, Acetaldehyde Ex- Ankleshwar prices were settled at INR 137470 per ton at Q1-end.
Europe
Prices of Acetaldehyde have witnessed mixed sentiments in the European market during the first quarter of 2023. In the first two-month of 2023, Acetaldehyde prices increased as market participants restocked the material available in the region. Although demand from the downstream food preservatives, perfumes have increased but at a slower pace. Moreover, volatility in the crude oil prices along with high inflationary pressure, has the other reason for the Acetaldehyde price raised in the regional market. However, towards the end of Q1, Acetaldehyde prices dropped sharply as the market sentiment continued to deteriorate in the backdrop of macroeconomic devastation in the banking sector. Furthermore, cheap Asian imports lead to better imported material availability in the region. On the other hand, demand from the downstream food preservative and perfumes industries have remained weak while the sufficient inventories to cater to overall demand, which forces the traders to revise their negative price quotation.
For the Quarter Ending December 2022
North America
Acetaldehyde prices showed fluctuation in the USA market during the fourth quarter of 2022. In the first few weeks of Q4, Acetaldehyde prices dropped owing to the weak cost pressure from the feedstock Ethanol prices. Demand from the end-user food preservative and allied industry remained subdued, while the ample material availability weighed down the prices of Acetaldehyde. However, during mid of Q4, Acetaldehyde prices rebound due to the high feedstock Ethanol prices. Limited material availability and improved demand from the end-user industry led to the price increase in the domestic market. Although, during the final of Q4, Acetaldehyde prices dropped, backed by the bearish demand dynamics amid off-season dullness. Meanwhile, a sufficient inventory level was available to cater to the overall domestic demand.
Asia- Pacific
Acetaldehyde prices have showcased an oscillating trend in Asia- Pacific during the fourth quarter of 2022. During October, Acetaldehyde prices dropped in the Chinese market owing to the subdued demand from the downstream food preservative and other competitive industries amid the sluggish consumer sentiment in the domestic market. However, during November, prices increased due to the improved demand from the end-user industry. Furthermore, under the influence of persistent lockdown implementation during the zero covid policy, manufacturers have started facing a labor shortage coupled with supply chain disruption, which majorly pertains to logistical constraints. Despite this, during December, prices gained downward momentum. Manufacturing activity declined as Covid-19 outbreaks continued to weigh on both output and demand. According to several authorities, purchasing manufacturing index dropped below 50 (i.e., 49.4), indicating a contraction in both manufacturing and industrial activity.
Europe
Prices of Acetaldehyde witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first month, Acetaldehyde prices dropped due to ample material availability and weak demand from the food preservative and other competitive industries. Feedstock Ethanol prices decreased, resulting in the low production cost of Acetaldehyde. Although, during the last two months, Acetaldehyde prices rebounded owing to the high-cost pressure from the feedstock Ethanol. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. Despite this, the market transactions have operated at low levels as the inflationary pressures have affected the downstream demand. In addition, imports from USA and Asia faced port congestion in key major trading ports of Rotterdam, Amsterdam, and Antwerp. Furthermore, Germany faced labor unrest, and logistics remained under pressure, which constrained the material available in the regional market.
For the Quarter Ending September 2022
North America
Acetaldehyde prices have witnessed mixed sentiments in the North American region during the third quarter of 2022 due to fluctuating feedstock prices. During July, Acetaldehyde prices dropped owing to the weak cost support and stable to weak demand dynamics. Feedstock Ethanol prices have fallen, which weakened the cost pressure over Acetaldehyde. Meanwhile, energy prices did go high; however, they had a limited effect on the Acetaldehyde prices. Although, during August, Acetaldehyde prices rebound due to the high feedstock Ethanol prices. Demand from the perfume, food, flavoring, and allied industries has slightly improved, causing Acetaldehyde prices to increase in the regional market. However, Acetaldehyde prices dropped during September due to the ample supply and inventory level to cater to domestic demand, while consumption from domestic and overseas markets remained sluggish. As a result, prices of Acetaldehyde in the USA dropped by more than 4% during September.
Asia- Pacific
Prices of Acetaldehyde have showcased fluctuation in the Indian market during the third quarter of 2022. During July, Acetaldehyde prices increased by 2.7%, supported by the high feedstock prices. Demand from the downstream food, flavoring, and allied industries has gradually improved, causing Acetaldehyde prices to rise in the domestic market. However, during August and September, Acetaldehyde prices dropped to the weak cost pressure from the feedstock prices. The downstream market has lowered, and fewer orders were observed from the downstream food, flavoring, and dyes industries. The downstream market players were more cautious amidst global economic challenges in buying goods and followed a wait-and-see approach. Moreover, cheap imports from exporting countries like China, South Korea, and Japan caused Acetaldehyde prices to decrease in the domestic market. However, with the onset of the festive season in India, the demand fundamentals are likely to increase in the Indian domestic market. Hence, as a result, prices of Acetaldehyde Ex- Bhiwandi were assessed at USD 1808/MT during September 2022.
Europe
Acetaldehyde prices have dropped consistently in the European market throughout the third quarter of 2022, supported by the weak feedstock Ethanol prices. The latest decline in the prices was due to the cheaper imports. The speculation of recession across the European region throughout the quarter depressed consumer demand as the inflation rates reached a record high. In addition, supply dynamics remained under pressure amid port congestion and labor strike. Germany, Netherlands, and Belgium showed port congestions, while the UK witnessed a weeklong labor strike, which resulted in limited material availability in the regional market. Although, weak demand caused a limited impact on the curtailed supply. As a result, prices of Acetaldehyde plunged by more than 5% in Germany during September.
For the Quarter Ending June 2022
North- America
During the second quarter, demand for Acetaldehyde recovered modestly from Food and Beverage industries. Despite this, uncertainty remained in the aftermath of the Russia-Ukraine War. Manufacturers underused manufacturing capacity due to low feedstock availability, resulting in significant supply constraints. Furthermore, buyers turned to the overseas market to maintain inventory stocked. Acetaldehyde prices increased despite ongoing market restrictions. In Q2 2022, the cost of Acetaldehyde significantly surged in the United States due to rising raw material Ethanol costs. In addition, energy prices climbed as geopolitical between Russia and Ukraine affected downstream costs. Acetaldehyde Contract FOB prices rose during the last month of the quarter.
Asia-Pacific
During the second quarter of 2022, Acetaldehyde has witnessed a downward trajectory in the Asia – Pacific region. In the Indian market, prices of Acetaldehyde have been declining since April because of adverse market sentiments. Furthermore, fresh export orders have been reduced due to the impact of the Russia-Ukraine war and the Chinese pandemic restriction. On the other hand, demand from the end-user food and beverages industries remained weak. Furthermore, Acetaldehyde prices continued to drop despite the domestic market's abundance of cargoes. In addition, the price decline was attributed to the low raw material cost, including Ethanol, and the plentiful inventory levels in the domestic market.
Europe
The market for Acetaldehyde did not see any improvement in Q2 2022. Acetaldehyde costs increased during the quarter as Asian imports became prohibitively expensive. Due to Europe's energy crisis, some European companies have found it difficult to operate at total capacity this quarter. In addition, Acetaldehyde prices have soared significantly with the overall production and raw material costs. Furthermore, rising import costs have forced domestic firms to alter their product lines to enhance profit margins. On the other hand, pharmaceutical and food and beverage demand looked steady. However, supply increased slightly in the second quarter as exports from the United States improved and output at a significant Acetaldehyde manufacturing activity ramped up.
For the Quarter Ending March 2022
North America
Acetaldehyde demonstrated strong market sentiments in the United States during Q1 2022. Acetaldehyde prices increased owing to the product’s limited availability in the region. The ongoing conflict between Russia and Ukraine impacted the upstream Crude oil prices and Ethylene prices, and prices soared as the market appeared to be recovering with stronger demand. The high cost of Acetaldehyde in the region has been under ongoing pressure due to supply shortages and increased demand from the downstream paint industries as binders. Furthermore, due to a maintenance turnaround, one of the Ethylene producers in Texas, Motiva Chemicals, temporarily shut down its plant, resulting in a supply deficit for downstream producers. In March 2022, Acetaldehyde FOB Texas (USA) pricing was reported at USD 2400/MT.
Asia-Pacific
Acetaldehyde showed good market sentiments in the Asia-Pacific region during Q1 2022, in contrast to the last quarter of 2021. The ongoing crisis between Russia and Ukraine has impacted upstream crude oil prices, which further increased feedstock Ethylene prices, resulting in a supply shortfall that has weighed on Acetaldehyde pricing in the Indian market. Strong demand from the paints and coating industries as a binder prompted businesses to increase their operating rates to protect revenues in the first quarter, affecting the market values of widely used raw materials such as Acetaldehyde. In addition, rising freight rates owing to a container shortage aided the region's high Acetaldehyde prices. Due to lack of inventory in the domestic market, producers have been unable to meet local demand despite solid demand from the paint industry. During the final quarter of March, Acetaldehyde Bulk Ex-Ankleshwar price was assessed at USD 1723/MT, while Acetaldehyde Ex- Bhiwandi was evaluated at USD 2131/MT.
Europe
During the first quarter of 2022, Acetaldehyde prices in Europe increased. High upstream crude oil prices and feedstock Ethylene prices, and regional supply shortage as a result of the Russian invasion of Ukraine had a considerable impact on production rates and operational costs. In addition, Acetaldehyde is utilized in the food processing industries as a preservative and flavouring agent, which has driven up the prices of Acetaldehyde. Furthermore, due to high energy prices in the European region, specific production units reduced their running rates. The Acetaldehyde Food grade CFR Le Havre (France) prices were assessed at USD 1430/ MT during March 2022.
For the Quarter Ending December 2021
North America
The Acetaldehyde market in North America remained consolidated throughout the fourth quarter of 2021. As a result of the ripple effect faced by aftermaths of the Hurricane Ida, several market participants believed that the present trend would continue during the next quarter. Acetaldehyde offers climbed to an all-time high in Q4 2021, while FOB Texas Acetaldehyde discussion plummeted to USD 595 per tonne in December 2021.
Europe
In comparison to the previous quarter, Acetaldehyde supplies in Europe improved in the fourth quarter of 2021 with minor fluctuations. The completion of a major manufacturer's recovery phase boosted the market even more. Prices continued to rise during the initial months because of international pressure, with feedstock prices pushing up Acetaldehyde prices on the worldwide market. As a result, despite the volatility in demand, prices in Europe remained in the range of USD 1210-1300/MT in Q4 2021. Demand for Acetaldehyde in the domestic market surged when the COVID restriction was lifted by mass vaccination programmes and economic activity improved.
APAC
Acetaldehyde prices in the APAC region stabilized in the fourth quarter. The supplies improved in the domestic market as the production efficiency in the region rebounded, backed with better output of upstream Ethylene which supported improved availability of Acetaldehyde. Furthermore, better derivative consumption in the US markets was observed. On an average, Ex-Depot Chennai prices for Acetaldehyde observed a very slight increment of INR 159-160 per kg from October to December. Acetaldehyde prices settled INR 16000/MT Ex-Depot Chennai in the final week of December
For the Quarter Ending September 2021
North America
Acetaldehyde pricing remained on an upswing in Q3 as the prices of feedstock Ethanol experienced a significant hike from July to September in the USA while pushing up the manufacturing cost of Acetaldehyde across the region. There was an increment in the demand for Acetaldehyde in Q3 from the downstream food and preservatives industry as several end- users returned back online after remaining low in operations during Q2. Production-related disruptions at several chemical manufacturing facilities during the month of September due to Hurricane ‘Ida’ affected the prices of several chemicals including Acetaldehyde as we moved into the second half of Q3.
Asia Pacific
During Q3 2021, Acetaldehyde market in the Asia Pacific region experienced mixed sentiments as the overall demand outlook varied from country to country. Acetaldehyde values in the Chinese market remained firm due to the stagnant market fundamentals of the product. In India, the market trend witnessed a downward trajectory, and Ex-Works prices declined from USD 2263/MT to USD 2121/MT during the third quarter due to limited variation in the demand dynamics. However, the overall Asian Acetaldehyde demand from downstream industries increased throughout the quarter after the market witnessed a significant fall in Q2 due to the second COVID wave in several economies.
Europe
During the third quarter of 2021, the market momentum escalated in the European region due to significant rise in shipments from the USA. Regional Acetaldehyde supplies were highly supported by the producers ending their turnaround period. A leading producer was heard increasing its offers for almost acetyl derivatives due to surges in upstream values. Increased production of upstream ethanol towards the end of Q3 supported the production dynamics of Acetaldehyde in Q3.
For the Quarter Ending June 2021
North America
The supply of Acetaldehyde in North America region recovered with ramped up production rates at several major manufacturing facilities. The impact of winter storm Uri reduced as the manufacturing plants restarted and the industrial infrastructure restored in the US Gulf coast during the second quarter of 2021. However, the surging cost of corn and sugar resulted in production cuts in the feedstock Ethanol and pushed up the overall manufacturing cost. As a ripple effect, the pricing trend remained up for a larger part of Q2. Demand remained healthy as offtakes were consistent from the downstream food and preservatives industry. Over the quarter, domestic demand from the US remained stable but exports declined as pandemic and widespread lockdowns affected procurement cycle in the western hemisphere.
Asia Pacific
Acetaldehyde demand in the Asia Pacific market showed mixed sentiments as the overall market outlook varied differently in different parts of the region. In India, the demand of Acetaldehyde remained muted, but the price uptrend was buoyed by firm feedstock leading to rise in the overall manufacturing cost. Prices in India showed a significant fall in May owing to the reduced offtakes from the downstream sectors as the buyers restrained to procure large orders amidst the second COVID wave. Pressured under muted demand, the Acetaldehyde price at a South India port was settled at USD 2432 per tonne, showing a hike of 6.8% from the prices in May.
Europe
During the second quarter of 2021, Acetaldehyde supplies in the European region improved from the previous quarter, as the shipment volumes surged from the US in the second quarter of 2021. The market supplies were further supported by a key manufacturer ending its turnaround period . Offtakes from the downstream food and preservatives sector improved as the mass vaccination programs eased the COVID restriction and economic activities improved prompting the demand of Acetaldehyde in domestic market.
For the Quarter Ending March 2021
North America
Supplies in the North American region were hindered during the first quarter of 2021 against the healthy demand from downstream industries and overseas market. The supply crises was exacerbated in mid-February when sub-zero temperature in the USA Gulf coast severely disrupted the production of key feedstock plants. Demand from the downstream industries remained strong. Domestic buyers were heard inclined towards the Asian suppliers as the market became more flexible amid the hiked cost in the regional market.
Asia-Pacific
The Asia Pacific Acetaldehyde regional market showed mixed sentiments, as the supplies remained balanced to firm throughout the Q1 2021. Chinese supplies were supported by the addition of capacities. The rebound in output as the production recovered in South Korea and Japan in the first half of February also contributed to assist supplies. Demand surged due to better offtakes from the downstream sector and improved arbitrage from the western region amid the global supplies shortage. In March Ex-depot Chennai prices of Acetaldehyde were assessed at USD 1947 per tonne for April deliveries.
Europe
Supplies in the European region remained tight-to-balanced in the first quarter due to unplanned turnaround and reduced shipments from the USA followed by the regional transportation lag amid the cold weather situation. However, addition of a new manufacturing facility in January balanced out the regional crisis. Demand was deemed healthy; however, constraints were observed in all the sectors. Moreover, consumption from the food preservative sector and downstream industries was ample.
For the Quarter Ending December 2020
North America
With the consistent increase in the price of feedstock ethanol, Acetaldehyde price in North America witnessed an upward trend in last quarter of 2020. Also, the plant operating rates gradually improved under the optimism that prevailed from the consistent upward push in crude values. Also, after the political shift major downstream producers are optimistic over the US-China bilateral trade and are anticipating a stable supply for the Acetaldehyde from imports.
Asia
The Asian Acetaldehyde demand stabilized in Q4, as major producers in India and China ramped up their production levels. Firm supply in October and November created a stable price in the Asian Acetaldehyde market. The supply tightening situation of Ethanol, a major raw material for Acetaldehyde created a hike in price in December. Traders and several downstream buyers of Acetaldehyde were heard piling up their inventory levels to prepare for the tightened supply in the near future. Government initiatives in major producing countries such as India and China will boost up the stability in supply of Acetaldehyde moving into 2021. The price for Acetaldehyde in India for the quarter ending December 2020 was averaged at USD 1840 per MT.
Europe
Many European countries reinstated lockdown measures to combat the second wave of Covid-19 pandemic. There was a reduction in the quantity of Acetaldehyde available in region in Q4. A regional supplier stated that he was able to fulfil the demand of contract buyers, the spot supplies however were relatively shortened. Some downstream industries are eyeing on import from the Asian companies to cater to growing demand for pharmaceuticals and agrochemicals. Spot buyers are anticipated to fill in their inventories from the import to meet the demand in the coming quarter.
