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 (APAC)
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
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.
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.
