For the Quarter Ending March 2025
North America
During Q1 2025, acetic anhydride prices in the USA declined steadily from January through March, reflecting a clear quarter-on-quarter and year-on-year weakening trend. This downtrend was primarily driven by sluggish demand from the pharmaceutical sector, which remained conservative in procurement amid elevated inventories and restrained production cycles.
Although upstream feedstocks such as methanol and acetic acid maintained stable price levels, helping contain production costs, subdued downstream offtake continued to weigh on overall market sentiment. Operationally, producers adjusted plant run rates slightly downward to align with market absorption capacity and avoid excessive inventory buildup. Logistical challenges—ranging from trade flow delays to shifting global supply patterns—further affected delivery timelines and stock management.
While a modest improvement in restocking activity was observed in late March, it failed to significantly lift market momentum. Overall, Q1 2025 was marked by cost-side stability and weak pharmaceutical demand, with recovery prospects dependent on increased formulation activity, export orders, and broader improvements in global pharma sector consumption in the coming months.
APAC
Acetic anhydride prices in China averaged USD 622/MT FOB Qingdao in Q1 2025, showing a 0.7% increase from Q4 2024’s average, but a sharp 21.7% decline year-on-year from Q1 2024’s average. While prices gradually increased from January to March, the market remained under long-term bearish pressure. Upstream cost support was limited, with softening acetic acid prices and stable methanol values keeping production expenses moderate. Producers operated at regular rates, and refinery throughput rose slightly YoY, ensuring consistent supply. However, inventory accumulation in some regions and low-cost imports from India and South Korea added to regional competition. Demand from pharmaceuticals, agrochemicals, and dyes stayed modest throughout the quarter, with most buyers adopting a cautious procurement approach due to weak downstream momentum. Despite temporary price adjustments, the overall market sentiment remained neutral amid flat trading volumes. In summary, Q1 2025 saw slight gains from Q4 lows driven by stable operations and inventory control, but lingering oversupply and subdued demand kept prices well below 2024 levels. Further recovery hinges on a tangible post-holiday demand rebound.
Europe
During Q1 2025, acetic anhydride prices in the UK declined progressively from January to March, averaging USD 1089/MT. This represented a 4.8% decline from Q4 2024’s average and a 0.7% decrease year-on-year compared to Q1 2024’s average. The downward trend was driven by persistently weak demand from the cellulose ester segment, following a sharp contraction in cigarette production. Pharmaceutical demand remained steady but failed to offset the broader slowdown, with no major procurement momentum from food or agrochemical sectors. Stable feedstock acetic acid and ketene costs kept production expenses contained, while steady domestic production and uninterrupted Asian imports ensured ample supply. Declining freight rates from North America further improved import competitiveness. Manufacturers maintained normalized run rates, and although UK construction activity showed early signs of recovery, demand for acetylation-linked coatings remained limited. Overall, Q1 2025 was defined by oversupply and soft industrial demand, with a cautious outlook hinging on potential stabilization in cellulose derivatives and renewed pharma sector growth.
For the Quarter Ending December 2024
North America
In Q4 2024, Acetic Anhydride prices in the USA remained stable, supported by adequate supply but weighed down by weak downstream demand in sectors like pharma sector, and construction-related applications.
Despite anticipated increases in methanol feedstock costs, sluggish downstream trading activity and constrained purchasing power limited significant price growth. Production operated at stable to slightly reduced rates, aligning with subdued demand, while broader manufacturing challenges, including declining economic indicators, weaker exports, and rising input costs, further strained the market. The construction sector showed mixed signals, with overall activity remaining slow but planning activity reflecting year-over-year growth and growing optimism for 2025 due to stabilizing financing conditions.
While upstream cost pressures were moderate, downstream weakness kept the market in a rangebound state, with cautious optimism for recovery in the coming year. Looking ahead, cautious optimism in construction planning and expectations of improved financing conditions may support moderate demand recovery in 2025. However, potential volatility in trade policies and continued geopolitical tensions remain risks to market stability.
Asia
In Q4 2024, the Acetic Anhydride market in China exhibited mixed trends, with periods of stability and slight price increases driven by supply constraints and modest improvements in trading sentiment. Prices stabilized in December, holding at USD 670-620 per MT FOB Qingdao, supported by adequate supply levels and stable downstream demand. Earlier in November, prices saw a modest rebound as production halts in Shandong reduced capacity and improved market balance. However, downstream demand, particularly from the pharmaceutical sector, remained weak, limiting significant price increases. The Chinese pharmaceutical industry faced challenges, with weak domestic demand, centralized drug procurement pressures, and declining performance in key metrics such as operating income and profit. Despite these challenges, sub-sectors like innovative drugs and medical consumables showed positive growth. Government policy support for innovative healthcare is expected to provide opportunities for recovery in 2025. On the manufacturing side, Acetic Anhydride plants operated at stable rates, with improved supply conditions bolstered by government stimulus. While foreign sales declined, domestic orders showed signs of stabilization. Upstream methanol prices fluctuated but remained under pressure due to weak demand and high shipping costs. Looking ahead, supply constraints may create upward price pressure, but weak downstream demand could cap significant price increases.
Europe
Acetic Anhydride prices in Belgium showed mixed trends in Q4 2024, rising in November due to stronger downstream demand, particularly from the pharmaceutical sector, before declining in October and December amid lower feedstock Acetic Anhydride prices and market oversupply. November's price increase was driven by seasonal demand for respiratory treatments and Belgium's robust pharmaceutical sector, which remained a critical consumer of Acetic Anhydride for oncology and chronic disease therapies. However, weaker market sentiment and oversupply pressured prices downward in the surrounding months.
Belgium's pharmaceutical sector demonstrated resilience, bolstered by its leadership in biopharmaceutical innovation, ranking highly in clinical studies and R&D investment, with €15.5 million invested daily. Despite economic challenges, the sector sustained steady demand for Acetic Anhydride, offsetting broader weakness in manufacturing activity. The Eurozone manufacturing sector faced contraction throughout Q4, with declining production and new orders, though November brought a slight improvement in business confidence.
Upstream, methanol prices are expected to rise in early 2025 due to Methanex's pricing adjustments, potentially increasing Acetic Anhydride production costs. Looking ahead, EU regulatory initiatives and Belgium’s strong pharmaceutical base are expected to drive demand and support market recovery in 2025, despite persistent economic headwinds.
For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Acetic Anhydride pricing landscape in North America exhibited a mixed trend, with a notable upward trajectory in the first half of the quarter while prices remained subdued in the second half.
This fluctuation was driven by several key factors, including increased demand from various industries, particularly pharmaceuticals and manufacturing, alongside supply constraints and rising production costs. Consequently, prices surged compared to the same quarter last year. Within the USA, which experienced the most significant price fluctuations, there was an increase from the previous quarter, with prices rising between the first and second halves of the third quarter. This trend indicates a consistent upward trajectory in Acetic Anhydride prices, reflecting a positive pricing environment.
Furthermore, various pharmaceutical companies in the US, such as Johnson & Johnson, reported record revenue growth in third quarter 2024. The quarter's performance highlights a robust demand-supply balance, cost dynamics, and sector-specific requirements, all contributing to the overall price escalation.
APAC
The third quarter of 2024 for Acetic Anhydride in the APAC region has been characterized by a significant decline in prices. However, in July, prices showed an upward trend, primarily driven by increased production costs due to higher Acetic Acid prices. Following this, prices fell, influenced by several key factors. Market dynamics revealed a notable decrease in demand from downstream industries, particularly the pharmaceutical sector, which led to oversupply and subsequent price reductions. Additionally, lower import prices from major exporting nations further contributed to the downward trend. China experienced the most substantial price changes, with overall trends in the region indicating a negative correlation with prices, marked by a notable -28% decrease compared to the same quarter last year. When compared to the previous quarter in 2024, prices recorded a -7% decline, reflecting ongoing market challenges. Notably, there was a -2% price difference between the first and second halves of the quarter, indicating a continued downward trajectory. The quarter-ending price in China stood at USD 671/MT of Acetic Anhydride FOB Qingdao, highlighting the prevailing negative sentiment in the pricing environment.
Europe
In Q3 2024, the Acetic Anhydride market in Europe experienced an increase in the first month of Q3 (July) due to higher feedstock Acetic Acid prices due to Halt in Celanese production of Acetic Acid and later notable decrease in prices was observed as the Feedstock Acetic Acid prices lowered throughout Q3, influenced by several key factors. The market saw a -10% change in pricing compared to the same quarter last year, reflecting a significant downward trend. Factors contributing to this decline include stable upstream methanol prices and reduced market demand due to a skilled labor shortage in the pharmaceutical sector. Additionally, the ongoing crisis in the Red Sea disrupted global supply chains, impacting Asian markets and leading to increased delivery costs and delays. Belgium, in particular, witnessed the most significant price changes in the region, with a recorded 2% decrease from the previous quarter in 2024. The quarter also saw a -3% price difference between the first and second halves, indicating a gradual decline. Ultimately, the quarter-ending price for Acetic Anhydride in Belgium stood at USD 1100/MT FD Antwerp, underscoring the prevailing negative pricing environment in the region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, Acetic Anhydride prices in North America saw a consistent decline due to several key factors. A downturn in demand from downstream industries like agrochemicals, surfactants, and pharmaceuticals, combined with substantial inventory levels held by domestic producers, pressured prices downward.
Additional supply from Europe and Asia exacerbated this trend. Fluctuating raw material costs, particularly the decline in Acetic Acid and Acetic Anhydride prices, further lowered production costs and enabled price reductions. In the USA, Acetic Anhydride prices decreased compared to the same quarter last year, reflecting subdued industrial activity and seasonal slowdowns in agricultural activities. Prices also declined from the previous quarter, indicating a persisting bearish sentiment and a progressively weakening market.
Overall, Q2 2024 was marked by significant downward pressure on Acetic Anhydride prices in the USA due to both demand and supply-side dynamics. It is anticipated that the price of Acetic Anhydride is likely to increase amid firm demand from the downstream pharma sector and additionally, it is anticipated to increase amid rise in the rise of feedstock Acetic Acid. Thus, the market outlook for Acetic Anhydride for US market seems optimistic thus leading to increase in procurement activities as the pharma sector is set to grow for upcoming quarter.
APAC
In Q2 2024, the Acetic Anhydride market in the APAC region experienced a notable decline in pricing, influenced by several critical factors. A combination of robust supply, subdued demand from downstream industries, and a reduction in production costs contributed to this downward trend. Increased inventories and constrained shipments further pressured manufacturers to lower factory quotations to stimulate market engagement. Additionally, the market witnessed diminished cost support from feedstock acetic acid, as its prices remained weak and failed to provide the necessary impetus for acetic anhydride.
China, as the predominant player in the region, saw the most significant price fluctuations. The Chinese market faced a combination of high inventory levels, weak demand from downstream industries such as construction and pharmaceuticals, and declining methanol and coal prices, which collectively drove acetic anhydride prices downward. Seasonal factors also played a role, with low industrial activity during specific periods contributing to price reductions.
Comparatively, the price of Acetic Anhydride in China decreased from the same quarter last year and showed a significant drop from the previous quarter in 2024. Within Q2 itself, prices further declined from the first to the second half of the quarter. The quarter concluded with Acetic Anhydride prices at USD 715/MT FOB Qingdao. Overall, the pricing environment remained predominantly negative throughout the quarter, driven by excess supply, weak demand, and lower feedstock costs, reflecting a consistent downward sentiment in the market.
Europe
Q2 2024 has been a dynamic period for Acetic Anhydride pricing in the Europe Region, characterized by a marked upward trend driven predominantly by several key factors. The persistent labour shortages in the pharmaceutical sector, coupled with heightened demand propelled by innovation and robust exports, have exerted significant upward pressure on the market. Sufficient market stocks, combined with stable upstream methanol prices, have continued to support this trend. Furthermore, geopolitical tensions in the Red Sea have exacerbated shipping bottlenecks, increasing freight costs and leading to further price hikes. The European Central Bank's decision to reduce interest rates by 25 basis points to 3.75% has also played a role in bolstering market sentiment and driving demand, despite cooled inflation rates for input and output costs. This quarter saw a concerted effort to mitigate logistical challenges, yet the ongoing crisis has led to increased operational expenses, further affecting the cost of Acetic Anhydride.
Focusing on Belgium, which experienced the most significant price changes, the overall trend has been consistently upward. The seasonality effect was evident, with a 6% price increase between the first and second half of the quarter, reflecting typical restocking activities. Compared to the same quarter last year, prices have decreased by 10%, highlighting a correction from previously inflated levels. From the previous quarter in 2024, there was a 3% increase, indicating a gradual recovery. The latest quarter-ending price in Belgium for Acetic Anhydride stands at USD 1140/MT FD Antwerp, underscoring a positive pricing environment overall. This sentiment reflects a resilient market navigating through challenges with a steady rise in prices, driven by fundamental demand and supply dynamics.
