For the Quarter Ending March 2023
North America
In the US market, Acetic anhydride prices showed a mixed trend during the first quarter of 2023. In the first couple of months, steady cost pressure from Acetic Acid and firm demand fundamentals from Pharma and cellulose acetate industry resulted in steady offtakes, which culminated in a steady rise in prices. However, the Acetic anhydride market turned bearish in the last month on the back of weak feedstock prices and stable offtakes. Furthermore, the labor strikes on the US West Coast ports resulted in temporary shutdowns of the ports while Labour Unions have yet to come to an agreement which resulted in supply chain disruption throughout the US.
APAC
In the Asian market, Acetic anhydride prices have shown a mixed trend in the first quarter of 2023. After a bearish start to the quarter due to weak demand dynamics and stable cost pressure, Acetic Anhydride prices revived into the second month of the quarter. Improved demand from industries, including the cellulose acetate industry, coupled with stable demand from the Pharma industry, resulted in optimistic price realizations. However, Acetic anhydride prices declined in the last month quarter of 2023 as cost pressure from Acetic acid declined while offtakes remained largely stable with limited to no new inquiries. Thus, as of March 2023, Acetic Anhydride prices were assessed at USD 766 per MT on a FOB basis.
Europe
In the European market, Acetic Anhydride prices remained largely stable throughout the first quarter of 2023. The steady demand from the downstream pharmaceutical industry coupled with stable consumption rates from the cellulose acetate industry resulted in consistent prices. However, feedstock Acetic acid prices declined towards the second half, which culminated in weak cost pressure on Acetic Anhydride, and thus prices showed a marginal bearish trend in the last month of the quartet. Meanwhile, the imports from the US as well as Asian markets remained firm on the European shores as the freight market eased further in Q1 2023.
For the Quarter Ending December 2022
North America
In the US market, weak demand fundamentals shrouded a major part of the last quarter of 2022. The constant threat of a recession coupled with holidays resulted in snug consumption rates from downstream industries, which resulted in limited demand pressure over Acetic Anhydride. Meanwhile, the consistent fall in feedstock Acetic Acid prices provided limited cost support, which further eased the prices of Acetic Anhydride. Q4 witnessed a sharp fall in freight charges on the US routes resulting in ample availability of imports from the Asia pacific market. The demand from downstream pharma, cleaning, and other industries have deteriorated throughout the quarter as market participants reported ample inventory levels in the domestic market.
Asia Pacific
Acetic Anhydride prices declined in the last quarter of 2022 as demand from downstream eased while the cost of production eased owing to stable weak feedstock. Acetic acid prices while supply dynamics remained stable. The operating rates of several capacities have been reported to be stable hence availing ample material in the market. Domestic players have reported stable level of inventory levels in the market. However, constrained logistics have contributed to snug supply chains as the lockdowns increased in China. Meanwhile, international demand dynamics also remained stagnant to weak, resulting in weak exports to the overseas market.
Europe
European market witnessed a consistent decline in the Acetic Anhydride prices owing to stable demand from downstream pharma and other industries amid a steady flow of imports and domestically produced material. The sharp fall in freight charges on European routes has assisted in the ample availability of imports from the Asian market as demand dynamics in the Asia-Pacific region remained snug. Meanwhile, in the domestic market, ease in feedstock Acetic acid prices resulted in weakened cost support resulting in a drop in Acetic Anhydride.
For The Quarter Ending September 2022
North America
Acetic Anhydride prices declined consistently throughout the three months of the penultimate quarter of 2022 due to weak cost support and stable to weak demand dynamics. Feedstock Acetic acid prices have fallen sharply as the upstream Methanol prices eased in Q3, which deteriorated the cost pressure over Acetic anhydride. Meanwhile, energy feedstock prices did go high; however, they had a limited impact on the prices of Acetic anhydride. Market participants reported ample supply and inventory levels to cater to the domestic demand, while consumption from the overseas market remained sluggish owing to weak volume offtakes from the European market. Thus, after September 2022, Acetic anhydride prices were assessed at USD 1610 per MT on a FOB basis.
Europe
European countries faced the dire economic condition of stagflation, where demand dynamics plummeted while inflation rates rose substantially. Acetic Anhydride market dynamics remained volatile as the domestically produced material was priced higher due to the hefty cost of production owing to high energy prices. At the same time, imported material prices were substantially lower compared to domestically produced materials. High energy prices and lower demand from the downstream construction industry meant manufacturers were prompted to cut operation rates. Hence, Acetic anhydride prices were assessed at USD 1330 per MT on FD basis after the conclusion of Q3.
Asia Pacific
Acetic Anhydride prices fell throughout the quarter owing to weak feedstock prices and sluggish demand in the domestic and international markets. Feedstock Acetic acid prices declined throughout the quarter, which eased the overall cost of production. Meanwhile, demand dynamics remained under pressure owing to frequent lockdowns in the country due to the covid pandemic. The performance of the debt-ridden construction industry has been underwhelming, and the volume of offtakes remained muted. Thus, after the conclusion of Q3, Acetic Anhydride prices were assessed at USD 877 per MT on a FOB basis in China. At the same time, supply chains in Northeast Asia and South Asia remained under severe stress as typhoons caused halts in port activities in China, Japan, and South Korea.
For the Quarter Ending June 2022
North America
The prices of Acetic Anhydride fluctuated in North America during the 2nd quarter of 2022, backed by changing demand and supply dynamics. Though the market value of feedstock Acetic Acid mainly rose throughout the quarter, Acetic Anhydride showcased an unstable pricing trend. The downstream demand from plastics, dyes, and pharmaceutical industries was flickering. In one month, it was strong; in another, it faded away, causing inconsistency in Acetic Anhydride price. Furthermore, the fluctuation in energy costs and freight charges also led to the instability in the price of Acetic Anhydride. In the USA, the prices of Acetic Anhydride firstly surged in April, became stable in June, and then started declining in June.
APAC
India and China witnessed different pricing trends for Acetic Anhydride in the second quarter of 2022. In India, the prices of Acetic Anhydride declined consistently from April to June, backed by weak downstream demand and lower upstream costs. The enquiry for Acetic Anhydride from dyes, plastics, and pharmaceutical industries decreased throughout the quarter. Furthermore, as the market value of feedstock Acetic Acid was slumping, so did the price of Acetic Anhydride. At the same time, the price value of Acetic Anhydride in China inclined till May and then started declining in June. Inconsistency in consumer buying patterns and trading activities led to the fluctuation in the prices of Acetic Anhydride during the quarter. Besides, flickering crude oil prices and freight charges were other factors contributing readily to the price instability of Acetic Anhydride in the Asia-Pacific region.
Europe
Mirroring the Acetic Anhydride trend in the Indian market, the prices of Acetic Anhydride plummeted consistently during the entire quarter 2 of 2022 in the European countries. The decremented offtake from downstream industries such as plastics, dyes, and pharmaceuticals was one of the significant factors behind this price slump of Acetic Anhydride. Furthermore, lower upstream cost amidst declining feedstock Acetic Acid price value which reduced the manufacturing cost, further contributed to the price plunge in Acetic Anhydride. Altogether, weak demand from end-user industries and the overflowing inventories leading to a consistent supply rate combinedly supported the price drop of Acetic Anhydride in Europe.
For the Quarter Ending March 2022
North America
In Q1 2022, the costs of Acetic anhydride slipped all through the first quarter in USA because of feeble Acetic acid market and deterred market sentiments. Further disintegrating demand is set to continue as operating rates for significant derivative portions including perfumes and dyes endeavors were apparently high rates in the U.S and gave frail visibility on deals and prices with the succeeding month of the quarter. We've also seen first the tepid visibility in the medium-term pricing environment continued to expect sufficient feedstock methanol inventories with weak market essentials decreasing the costs. Exports to European Nations were additionally impacted as the oversupplies of product in the overseas impacted the costs. In this quarter, the cost of Acetic Anhydride in US for March was USD 1100/ton CFR Louisiana.
Asia Pacific
In this quarter, the costs of Acetic Anhydride stayed stable with lukewarm market sentiments in the domestic market of India. In February 2022, The Bureau of Indian Standards (BIS) enforced new quality control guidelines for Methanol imports which is expected to create problems for the dealers to meet the specifications. Underlying market sentiments for Naphtha stayed weak on determined worry over balanced out olefin and aromatic margins. Utilization of Acetic Anhydride in Pharmaceuticals ventures additionally expanded with speeding up request from the end users. In India, the cost of Acetic Anhydride towards the quarter end was assessed at USD 2036/ton Ex-Delhi NCR. In China, the market stayed weak, and the Commodity Exchange prospects likewise reduced as the demand from downstream undertakings was not steady. In China, the cost of Acetic Anhydride towards the quarter end was USD 1074/ton FOB Qingdao in the first quarter of 2022.
Europe
European Acetic Anhydride market stayed on the lower side with declining demand with every month in Q1 2022. Demand stayed deterred and the stockpile was adequate which brought about such cost pattern. Major downstream derivative producer companies-maintained costs on their product despite slow interest and accumulation of inventories. Feedstock Acetic Acid displayed level of frail trading environment and producers had moved from negotiation mechanism and rather decreased the costs because of adequate accessibility and lower production cost. Downstream dyes and coating market had likewise slipped, and the demand/supply harmony become unstable. In Germany, the cost of Acetic Anhydride was assessed at USD 2100/ton CFR Hamburg.
For the Quarter Ending December 2021
North America
In North America, the nonstop plunge in the price trend was seen with weak interest and adequate stock. However, the costs were on the high side whenever compared with Q2 and Q3 for that very year. The feedstock methanol prices continued to be increasing on the back of crude oil price shooting up. Downstream Pharmaceuticals had taken the centre for most of the acetic anhydride consumption. November and December demand were observed to be slow if compared with October. Shortage of Raw material Methanol had put impact on the prices in October which started to recover in following months. Plastic and dyes industries growth was aided by low base and improvement in demand from the consumers. Acetic Acid prices were also surged in Q4 2021 with remarkable growth in the export market to European countries mainly Germany, Netherlands.
Asia Pacific
In Q4, the demand of Acetic Anhydride was robust with healthy downstream market. In China, the prices were surged to $1721/MT FOB Qingdao in the last week of December with increase in feedstock Methanol and Acetic acid prices, the upward momentum of Acetic Anhydride increases, and market rose. The operating rate of downstream enterprises were observed to be operated robust with elevated efficiency. In Monthly comparison in Q4, October the demand was on the upper side compared to November and December as the market was peaked out with the maximum prices. In the remaining months. Chinese methanol prices closed the week lower, which were underpinned by tepid demand and lower crude oil prices. Imported spot cargoes of Methanol were also thinned in the last week of November. Methanol imports from Iran to China appeared to be sufficient for January 2022 with at least 160,000MT methanol offered in a tender which closes on 6 December.
Europe
In Q4, the prices of Acetic Anhydride were observed to be on upper end with improved demand and healthy downstream market. Some Acetic Anhydride producers had considered surcharges in consider to higher energy cost as well as the cost and lack of container availability. Tight acetic acid market due to raw material shortage faced significant pushback from the buyers. Major Acetic Anhydride producers had kept prices surged in face of spiralling gas and electricity cost with improved exports from Belgium and United Kingdom. Downstream demand was also improved from Q2 and Q3 with more consumer demand and efficiently performing industries.
For the Quarter Ending September 2021
North America
In North America, consistent scarcity of feedstock Acetic Acid was observed in the third quarter due to the disrupted production and supply chain. Moreover, In the US Gulf region, harsh weather conditions in August end compelled manufacturers to halt production for almost 7-14 days which further tightened the supply of Acetic Anhydride across the region. Henceforth, significant demand from downstream pharmaceuticals sector coupled with the limited feedstock availability led to the rise in the prices of Acetic Anhydride in the region.
Asia
In Q3 of 2021, Acetic Anhydride showcased mixed sentiments throughout the quarter. FOB Qingdao China Acetic Acid witnessed downward trajectory, falling to USD 1540 per MT in early August owing to the oversupply of Acetic Anhydride in China. However, by August end, a severe congestion was witnessed on several ports of China due to harsh weather conditions. Zero tolerance protocols in China also affected the global market as production in various plants remained halted which directly influenced the supply across the globe. Additionally, the persistent shortage of feedstock Acetic Acid coupled with the temporarily shutdown of Nanjing’s Celanese Acetic Anhydride plant in September further tightened the Acetic Anhydride market. In the meantime, Acetic Anhydride demand remained sufficient to trigger rise in the domestic prices. Therefore, a hike by around 3.5% was observed in China with Acetic Anhydride prices reaching USD 1915/MT FOB Qingdao in September 2021.
Europe
During Q3 2021, European market witnessed steady demand for Acetic Anhydride owing to the significant consumption from downstream pharma sector. However, a steep inclination in the prices of Acetic Anhydride was observed due to the shortage of raw materials as imports from Asia and USA were affected because of port congestion in China and hurricane Ida in USA respectively, in August. In addition, shortage of shipping containers and fuming freight cost also contributed to the escalating price trend of Acetic Anhydride across the region.
For the Quarter Ending June 2021
North America
Acetic Anhydride prices showcased a steep upward trajectory during this quarter, as the demand improved effectively against the low material availability. Post the disruption caused by the winter storm in the Gulf of USA, manufacturers remained busy in releasing previous orders, while getting fresh demand from other downstream users. On the demand side, pharma sector was deemed as the major consumer for Acetic Anhydride in the region. Henceforth, a rise by around 3.7% was observed, which slowed down gradually and finally reached USD 1225/MT for FOB Texas during in June 2021.
Asia
Asian market experienced a steep rise in prices of Acetic Anhydride, backed by severe shortage of feedstock Acetic Acid. In China, prolonged plant shutdowns in Jiangsu and Henan province decreased the availability of feedstock chemicals in the country. Meanwhile, the demand for Acetic Anhydride remained high enough which triggered the rise in the domestic prices. Thus, under supply shortage, its prices skyrocketed during this time frame. Therefore, rise of around 4% was observed in China, reaching USD 1284/MT at FOB Qingdao in June 2021.
Europe
Demand for Acetic Anhydride in the European region remained firm during Q2 2021 due to the sturdy consumption from downstream pharma sector. Besides, shortage of feedstock chemicals due to weak imports from Asia and USA also impacted the product availability across the region and led to a steep inclination in prices of Acetic Anhydride. In addition, fuming freight cost and shortage of shipping containers also exerted an additional burden on the prices of Acetic Anhydride across the region.
For the Quarter Ending March 2021
North America
The North American Acetic Anhydride market experienced firm demand from the downstream sector despite lower product availability across the region. Production remained curtailed due to unplanned turnarounds on several plants near the gulf coast of USA. Celanese declared force majeure at its Texas based Acetic Anhydride plant which reduced the availability across the region. Meanwhile the demand from the pharmaceuticals sectors sustained strong sentiments throughout the quarter, and hence the prices were tracing an upward trajectory. FOB Texas prices were settled at USD 1160/MT in March from USD 1070/MT levels in January.
Asia
The Asian market witnessed firm demand from the domestic pharmaceuticals sector and critical shortage of the product across the globe. The production cuts from USA due to cold snap exacerbated by tight supply from China, created a critical shortage of Acetic Anhydride across the APAC region. Thus, the FOB prices followed an upward trend and reached USD 1241/MT (March 2021) in the Chinese market, while in India, FOB price of Acetic Anhydride rose by 7.19% within the quarter and settled around USD 919.13/MT.
Europe
High demand from the pharmaceutical sector drove the European Acetic Anhydride market during Q1 2021. While curtailed production activity in USA, lowered down the spot availability of Acetic Anhydride globally. Firming Acetic Acid rates maintained the cost pressure over regional Acetic Anhydride manufacturers. Meanwhile, demand from the Asian market also played a major role for driving the prices toward upward trajectory.
For the Quarter Ending December 2020
Asia
Acetic Anhydride demand remained resilient throughout Q4 as the end use industries including Cellulose Acetate and Aspirin continued production. Demand from the end use in (tetraacetylethylenediamine) TAED segment saw a significant rise as the demand for laundry detergent increased in the region in the wake of COVID-19 pandemic. Prices of the feedstock Acetic Acid saw a rise which raised the prices for Acetic Anhydride in Q4. Thus, price of Acetic Anhydride in India during Q4 was averaged around USD 1318 per MT.
North America
Demand came from both cigarette filters and pharma industry as both revived in Q4 from the aftereffects of lockdown. Furthermore, demand from TAED segment rose much sharply with the rise in the demand for Laundry detergent. Consequently, prices of Acetic Acid increased due to surge in prices of feedstock Methanol which suffered limited supplies in Q4. This has caused a slight increase in the prices of Acetic Anhydride prices as compared to Q3.
Europe
Supply of feedstock Acetic Acid in the European market saw a slight decline in Q4 due to production cuts implemented in several plants of feedstock methanol in Q4. Shortage of upstream Methanol in the region caused an upward pressure on the prices of Acetic Anhydride. Demand from cellulose acetate, pharmaceuticals increased as both the industries rebounded from the aftereffects of the COVID-19 pandemic. Demand from TAED segment saw a slightly higher growth as compared to cellulose acetate and pharma industry as the need for cleaning products and detergents rose sharply both in Q3 and Q4.
