For the Quarter Ending June 2021
North America
Market sentiments of Monochloroacetic Acid in the North American region stabilized in the second quarter after observing a steep increment in the pricing trend throughout the second quarter. Supplies improved in the US as production in the Gulf region rebounded, taking cues from the better output of upstream Acetic Acid. Demand from the downstream surfactant, textile and coating industries flourished with revival in industrial activities. Overall, the pricing trend remained influenced by cost support of upstream Acetic Acid.
Asia Pacific
In the second quarter of 2021, Monochloroacetic Acid market witnessed demand supply imbalance as a ripple effect of the sudden turnaround in several major production facilities of upstream Acetic Acid. Whereas in China, the steep increment in prices of raw material Acetic Acid supported the pricing trend in the domestic market. Demand from the downstream industries in the Northeast Asian region remained healthy as commercial and industrial activities gradually improved. Whereas, due to the impact of second COVID wave in India, Acetic Acid prices slumped with limited industrial activities and decline in demand from the downstream market. As a ripple effect, producers decreased the offers by certain margins with Ex-Work Mumbai prices being assessed at USD 1073 per tonne in Q2 2021.
Europe
As various US facilities restarted their production after the winter storm, availability of feedstock Acetic Acid marginally improved, which led to reduction in the supply constraints of Monochloroacetic Acid during the second quarter of 2021. However, the overall production remained hampered amidst the limited availability of upstream Acetic Acid and Chlorine. Demand surged as the offtakes improved from the construction sector.
For the Quarter Ending March 2021
North America
The regional Monochloroacetic Acid supplies remained limited during the first quarter of 2021 amidst constrained availability of the key feedstock Acetic Acid due to the disrupted production in the several regional plants. The shutdown of 910,000 MT per Year Formosa Plastics feedstock chlorine facility in the first half of Q1 further exacerbated this crise. The spot buyers in the region became more inclined towards the Asian market due to lower prices than the domestic market. Demand remained upbeat due to improved consumption from the downstream food and pharmaceutical sectors despite the regional shortage which caused a multifold surge in the prices of Monochloroacetic Acid in the timeframe.
Asia-Pacific (APAC)
In the Asia Pacific market, supplies of Monochloroacetic Acid remained tight during the first quarter of 2021 due to the plant turnarounds in China amid Chinese Lunar New Year holidays in February. Constraint availability of the feedstock Acetic Acid and Liquid Chlorine reduced the margins for the downstream manufacturing facilities. Demand surged from the downstream segment as the offtakes were constant from the personal care, food, and pharmaceuticals sectors. Hiked prices of key feedstocks Acetic Acid and Liquid Chlorine caused a multifold surge in the prices of Monochloroacetic Acid with FOB Shanghai price settling at USD 1250 per ton in March.
Europe
The European Monochloroacetic supplies remained tight during the first quarter of 2021, owing to the low inventories level amidst the constant offtakes from the downstream market. The Northwest regional plants operated in sluggish manner due to the shortage in raw materials amid the transportation lag from western region due to severe freeze weather. Demand surged as the enquiries from the downstream food and pharmaceutical market improved.
For the Quarter Ending December 2020
Asia
Monochloroacetic Acid (MCA) supply in the Asia Pacific remained feeble due to constraints over overseas shipments across several trade routes along Southeast Asia amidst fears of new Coronavirus in Europe. Consistently rising prices of the feedstock acetic acid also played a major role in limiting the supplies. Rising demand of agrochemicals in the APAC due to expansion in agriculture led Indian government to take initiatives like the PLI scheme to promote domestic manufacturing of agrochemicals. This is poised to release the supply pressure in India hence stabilization of prices of Monochloroacetic Acid in the future as it has application in several herbicides.
North America
High agriculture spending in the U.S., Canada, and Mexico played a critical role in shaping the regional market demand which revived from the COVID impact. Availability of feedstock acetic acid in the US remained tight due to coronavirus pandemic as it slowed down market activity in the western hemisphere in Q4. This resulted in price rise for acetic acid hence increasing production costs for derivative monochloroacetic acid.
Europe
Domestic demand slowed down due to impact of the new COVID, which led to constraints on trade routes to the APAC region. Monochloroacetic acid availability in the region considerably eased with the addition of new plants from PCC in Poland and Neuryon in Netherlands. This is expected to increase the domestic supply which can enable price stabilization in the long run. Exports are expected to rise in the upcoming quarter due to rising demand for agrochemicals in North America and the APAC region.
