For the Quarter Ending June 2021
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.
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.
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
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.
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.
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
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.
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.
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.