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[Unit = USD/Tonnes]
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[Unit = USD/Tonnes]
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[Unit = USD/Tonnes]
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[Unit = USD/Tonnes]
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[Unit = USD/Tonnes]
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[Unit = INR/Tonnes]
For the Quarter Ending September 2023
North America
Prices of Monochloroacetic acid have showcased fluctuations in the US market during the third quarter of 2023. During the initial and mid of Q3, Monochloroacetic acid prices have witnessed a downward trend in the domestic market. The cost pressure from feedstock Acetic acid and Acetic anhydride was limited as their prices settled on the lower end in the given time frame. On the demand front, the inquiries from downstream agrochemical, dyes, and surfactant industries have remained subdued which weighed down the prices of Monochloroacetic acid. The market transactions were relatively light as the enthusiasm of terminal firms to enter the market was not strong in the domestic market. The availability of finished stock of Monochloroacetic acid was sufficient as new orders were declined. However, towards the end of Q3, Monochloroacetic acid prices have increased slightly due to improved demand dynamics. The feedstock Acetic acid and Acetic anhydride prices have risen, uplifted by strong crude oil prices resulting in the high production cost of Monochloroacetic acid in the domestic market. Thus, prices of Monochloroacetic acid FOB Houston were settled at USD 1535/MT during September 2023.
Asia- Pacific
Prices of Monochloroacetic acid have demonstrated a mixed trend in the Asian market during the third quarter of 2023. During July, Monochloroacetic acid prices decreased in the Chinese market. The inquiries from the downstream agrochemical, dyes, and other industries were soft, resulting in declining consumption rates. In the meantime, demand from the overseas market has also been observed on the lighter side amidst a weak global economy. On the supply front, the inventories have remained sufficient which supported the downshift in the prices of Monochloroacetic acid in the domestic market. However, during August and September, prices of Monochloroacetic acid have increased significantly due to high-cost pressure from feedstock. The global crude oil prices are on the upswing, driven by anticipation of extended production cuts by OPEC+ nations which pressurizing the price realizations of feedstock Acetic acid and Acetic anhydride prices to stay optimistic. Although, demand from the domestic and international markets has remained tepid. As per the market sources, Export rates have declined from 14.5% in July to 8.8% in August, indicating a weak downstream demand. As a result, prices of Monochloroacetic acid FOB Qingdao were settled at USD 599/MT during September 2023.
Europe
Prices of Monochloroacetic acid have continued to drop in the German market throughout the third quarter of 2023 backed by limited demand and sufficient inventories. The cost pressure from feedstock Acetic acid and Acetic anhydride was limited as its prices settled on the lower end in the domestic market. The persistent firm inflationary pressure and high interest rates have eroded the purchasing power of consumers. Meanwhile, demand from the downstream agrochemical, surfactant industry has remained subdued which weighed down the prices of Monochloroacetic acid in the domestic market. The Ifo Business Climate Index was tumble from 85.8 points in August to 85.7 points in September. In terms of domestic production, the operating rates were remained low as demand from the downstream industry had not fully recovered in the domestic market. The level of inventories was remained sufficient to cater to overall downstream demand which supported the prices to follow downtrend in the domestic market. Furthermore, BASF SE manufacturer of Monochloroacetic acid has reported sales in the Agricultural Solutions segment during the second quarter of 2023, sales of €2.2 billion were 9.3% below the level of the prior-year quarter. The main reason for the price decline was attributed to the drop in volumes amid higher channel inventories in individual core markets as well as lower agricultural commodities prices. As a result, prices of Monochloroacetic acid FOB Hamburg were settled at USD 1106/MT during September 2023.
For the Quarter Ending June 2023
North America
Monochloroacetic acid prices have remained subdued in the US market throughout the second quarter of 2023, supported by weak feedstock prices and limited demand. The impact of the most aggressive monetary policy tightening in decades and the expected slowdown of the US economy all argue in favor of weak economic activity, slowing down the market growth of several commodities, including Monochloroacetic acid. The demand from the downstream agrochemical dyes industries has remained tepid from both the domestic and international markets and as a result, a drop has been observed in the price realizations of monochloroacetic acid in the domestic market. In addition, the aftermath of the collapse of two significant banks in the US market during late Q1 of 2023 has had repercussions on the performance of manufacturing industries. However, the Core inflation has consistently exceeded the targeted levels set by the US Federal Reserve and has been gradually decreasing at a slower pace, resulting in strained trade activities. On the upstream front, Acetic acid and Acetic anhydride prices have decreased, which resulted in the low production cost of monochloroacetic acid in the domestic market. Thus, prices of Monochloroacetic Acid FOB Houston were assessed at USD 1600/MT during June 2023.
Asia - Pacific
Monochloroacetic acid has witnessed a downward trend in the South Korean market during the second quarter of 2023. The inquiries from the downstream agrochemical and textile industry have dropped amid weak buying sentiments in the domestic market. The enthusiasm of the terminal firm to enter the market was not strong, and market transactions were relatively flat in the domestic market. In addition, imports to South Korea fell by 14.0% to $54.34 billion, faster than the 13.3% fall seen in April and the fastest since August 2020. Furthermore, steady imports from China and other exporting nation have led to abundant inventories in the domestic market. Moreover, the freight charges have continued to decline ahead of weak global demand and other economic uncertainties, which weighed down the prices of monochloroacetic acid in the domestic market. In addition, the South Korean manufacturing purchasing manager’s index eased from 48.4 in May to 47.8 in June, indicating a contraction zone. Therefore, prices of Monochloroacetic acid CFR Busan were settled at USD 888/MT during June 2023.
Europe
Prices of Monochloroacetic acid have significantly dropped in the German market during the second quarter of 2023 amid limited demand and sufficient inventories in the domestic market. The firm inflation rate and persistent rise in interest rates have impacted the market growth of Monochloroacetic acid. The cost pressure from the feedstock Acetic acid and Acetic anhydride remained insufficient as its prices progressed in a downward trend in the given time frame. On the demand front, the inquiries from the agrochemical industries have softened, resulting in decreasing consumption rates, thus weighing down the prices of Monochloroacetic acid in the domestic market. At the same time, demand from other European countries has also been observed on the lighter side amid economic uncertainties, which further led to price drops in the domestic market. In addition, the material availability was sufficient. As a result, manufacturing firms reduced their operating rates as manufacturers were cautious about building up excessive inventories. Furthermore, the German purchasing manager’s index has dropped from 44.5 in April to 43.2 in May, indicating a contraction in new orders. Therefore, the positive development of Monochloroacetic acid has been subdued, and prices operated at a low level. Therefore, prices of Monochloroacetic acid were assessed at USD 1200/MT during June 2023.
For the Quarter Ending March 2023
North America
Monochloroacetic Acid prices have experienced a fluctuating trend in the USA market during the first quarter of 2023. During the initial of Q1, Monochloroacetic Acid prices have inched higher amid high demand from the downstream derivative Methyl Chloroacetate and Ethyl chloroacetate industries, while limited material availability resulted in the price increase in the regional market. Market participants reported a limited sharp rise in queries from the end-users. However, feedstock Acetic acid and Acetic anhydride prices have decreased with limited bearing over Monochloroacetic Acid. However, during the mid and final quarter of Q1, Monochloroacetic acid prices decreased due to sluggish demand from the downstream derivative industry. There were limited instances of new orders inquired by the end-users, resulting in bearish pricing sentiment in the regional market. The sluggishness in the market can also be observed in the below-par performance of the manufacturing industry in the US market. Thus, Monochloroacetic Acid FOB Houston prices were settled at USD 1550/MT during March 2023.
Asia- Pacific
Monochloroacetic Acid prices have showcased an oscillating trend in China throughout the first quarter of 2023. During the initial and mid of Q1, Monochloroacetic Acid prices showed stability due to steady demand from the downstream agrochemical and dyes industries from the domestic and overseas markets while the supplies remained sufficient to cater to the overall demand from the downstream industries. Although, during the final of Q1, Monochloroacetic acid prices dropped in the domestic market on account of subdued demand dynamics and ample supply in the domestic market. In addition, Cost pressure from feedstock Acetic Acid and Acetic anhydride has eased, which resulted in the low production cost of Monochloroacetic Acid. Market participants reported limited instances of new queries, thus affecting the pricing sentiments of Monochloroacetic Acid in the domestic market. Meanwhile, the manufacturing activity experienced a slower expansion in March. This can be attributed to the slower-than-expected economic recovery of the regional bellwether China following its reopening from the pandemic. Consequently, prices of Monochloroacetic Acid FOB Qingdao were settled at USD 584/MT during March 2023.
Europe
Monochloroacetic Acid has witnessed mixed sentiments in the European market during the first quarter of 2023. During January, Monochloroacetic Acid prices increased in Europe as inventory levels dropped while the procurements increased after the holidays. Meanwhile, supply chains have remained steady with stable Natural gas prices in the market. In addition, operating rates have improved in the domestic market while imported Monochloroacetic acid prices have also remained comparatively high than the domestic prices as prices continue to increase in the Asian market. Although, during February and March, Monochloroacetic acid prices decreased in the regional market as import flow has been steady at the European ports, resulting in ample material availability in the regional market owing to firm imports and stable production rates. Furthermore, the European region has witnessed a drop in PMI for March 2023 as Eurozone Manufacturing PMI declined to 44.7, measuring a dip of 3.5% on a monthly basis and remaining in contraction. The demand for Monochloroacetic Acid from downstream industries, including agrochemical and other value chains, has been subdued as limited new orders were reported by the end-users. Thus, prices of Monochloroacetic Acid FOB Hamburg were settled at USD 1220/MT with a month-on-month decline of 3.9% during March 2023.
For the Quarter Ending December 2022
North America
Monochloroacetic acid prices have shown hefty fluctuations in the USA market during the fourth quarter of 2022. In the first half of the quarter, Monochloroacetic acid prices declined due to sufficient inventory coupled with ample material available on the US shores, resulting in weak pricing dynamics. Demand from agrochemicals, dyes, and other competitive industries eased owing to seasonal dullness. Meanwhile, cost pressure from feedstock Acetic acid and Acetic anhydride remained bearish. Furthermore, demand from the overseas market has also remained on the weaker side amid a downturn in the global economy. Although, during the second half of the quarter, Monochloroacetic acid prices have increased slightly owing to the improving demand from the downstream pharmaceutical and allied industries. Thus, in conclusion, prices of Monochloroacetic acid FOB Houston were assessed at USD 1705/MT during December.
Asia- Pacific
Monochloroacetic Acid prices showed a mixed trend in the Asian market during the fourth quarter of 2022. In China, during October and November, Monochloroacetic Acid prices continued to decline, backed by sufficient inventory and weak demand dynamics. In terms of domestic production, operating rates remained under check as demand and supply dynamics remained deadlocked. Consumption from downstream agrochemical, dyes, and allied industries decreased subtly in the last few months, and procurement of the material has been moderate as the wait-and-see sentiment dominated the overall Monochloroacetic Acid market. Although, in December 2022, Monochloroacetic acid prices rebounded due to the improving demand from the international market. At the same time, demand from the domestic market has remained subdued amid the lockdown and zero covid policy; hence; as a result, prices of Monochloroacetic acid FOB Qingdao were assessed at USD 623/MT during December.
Europe
Monochloroacetic acid prices have witnessed mixed sentiments in the European market throughout the fourth quarter of 2022. In the first month of Q4, prices increased due to high inflation and limited material availability. In terms of domestic production, operating rates remained under check as natural gas prices continued to increase. The supply chains in the market were disrupted amid prolonged port congestions, vessel bunching, along with labor shortages which hampered the supply flow of Monochloroacetic acid and, thus, limited the availability of the material in the regional market. However, during the last two months of Q4, Monochloroacetic acid prices have dropped steeply, mainly due to the weak cost pressure from the Acetic feedstock acid and Acetic anhydride. Additionally, a sharp decline in the freight cost, resulting in cheap import availability in the regional market. Meanwhile, energy prices have stabilized, resulting in soft production costs. On the other hand, demand from the downstream agrochemical, dyes, and other industries has continued to remain subdued amid weak buying sentiments in the regional market. As a result, Monochloroacetic Acid FOB Hamburg prices were assessed at USD 1295/MT during December.
For the Quarter Ending September 2022
North America
Monochloroacetic Acid prices witnessed a mixed- trend in the North- American region during the third quarter of 2022 due to fluctuating demand dynamics. During the initial and mid of Q3, Monochloroacetic Acid prices have increased. As a repercussion of rising inflation in the country, tightened monetary policy and improved interest rates have been imposed by the US Federal Reserve. Demand from the downstream derivative Carboxymethyl Cellulose and other value chains has improved, forcing the manufacturer to raise their prices. However, due to the stable to weak demand from the downstream agrochemical and other derivative industries coupled with sufficient inventory level, Monochloroacetic Acid prices dropped by 2.2% during the third quarter. At the same time, demand from the international market has also plunged amid global economic slowdowns. In addition, raw material Acetic Acid and Acetic Anhydride prices have plummeted, as the other facts for the price drop in the regional market. Additionally, production rates remained optimum despite stable consumption rates in the domestic market. Supply chains have remained a cause of concern for US manufacturers in the past few quarters, and the trend continued in August 2022. Logistics constraints and port congestions on US Gulf Coast and East Coast have further worsened the supply dynamics. Therefore, Monochloroacetic Acid FOB Houston prices were assessed at USD 1795/MT during September 2022.
Asia- Pacific
During the third quarter of 2022, Monochloroacetic Acid has showcased a downward trajectory in the Asian region. The market sentiments for Monochloroacetic Acid have dropped in China’s domestic market (exporting countries), supported by an abundance of supply. Due to excess supply and overflowing inventories, the price of Monochloroacetic acid has been steadily declining in the domestic market. In addition, the price of feedstock Acetic acid and Acetic anhydride was falling at the time, resulting in a decrease in the price of Monochloroacetic Acid. Additionally decline in downstream demand from the agrochemical industries and the decreased offtake from derivative sectors like Carboxymethyl Cellulose supported the price plunge of Monochloroacetic Acid in the domestic market. Hence, as a result, Monochloroacetic Acid FOB Qingdao prices were assessed at USD 609/MT, with a monthly decline of around USD 609/MT during September 2022.
Europe
Monochloroacetic Acid prices have continued to increase in the German market throughout the third quarter of 2022. Since the beginning of the Russia- Ukraine war, natural gas prices have been a major cause of concern, and Europe has still been battling with high gas prices. The rise in Natural gas prices has boosted electricity prices, thus dramatically increasing the overall cost of production. Rising production costs amid weak demand have prompted Monochloroacetic Acid manufacturers to drop operating rates. Furthermore, the demand from the downstream derivative and other allied industries has declined amid high inflation rates. As per the Eurostat data, the inflation rate in Europe has around 7.9% during August 2022. Furthermore, high temperatures and scant rainfall drained Rhine water levels, a major German commercial transport artery, causing delays to be shipping and pushing freight costs up, which resulted in the high prices of the Monochloroacetic acid in the German domestic market. Thus, Monochloroacetic Acid FOB Hamburg prices were offered at USD 1415/MT with a monthly inclination of around 3.7% during September.
For the Quarter Ending June 2022
North America
In contrast to the last quarter of 2022, Monochloroacetic Acid showed positive market sentiments in North America during Q2 2022. A shot up in the upstream crude value has impacted the feedstock Acetic acid and Acetic anhydride prices, which further kept the prices of Monochloroacetic Acid in an upward trend. In addition, Increased demand from the downstream derivative Sodium Mono Chloroacetate and Ethyl Acetate market further increased regional market prices. Moreover, limited supply and surging demand coupled with concerns over sky-high inflation took Monochloroacetic Acid prices to new highs in the USA market. Additionally, major raw material Acetic Acid manufacturers had announced force majeure. Firstly, Celanese announced force majeures on Acetic Acid and VAM production, followed by INEOS declaration of force majeures while being on planned maintenance and failing to cater to the customer's demand. Hence, there was a significant disruption in the supply chain, resulting in a price hike of Monochloroacetic Acid in the USA market. Thus, during June, Monochloroacetic Acid prices were around USD 1990/MT. Overall, the demand from the agrochemical sector, including herbicides and insecticides, has remained robust, as have the other facets for the high pricing of Monochloroacetic Acid across the region.
Asia – Pacific
During the second quarter of 2022, Monochloroacetic Acid has witnessed a downward trajectory. The Monochloroacetic Acid market witnessed a fall in China due to abundant supplies and bearish demand. Low feedstock Acetic acid prices kept the prices of Monochloroacetic Acid in a downward trend. The declination has been attributed to the increased inventory level in the domestic market backed by the ramped-up production and reduced offtakes followed by the low demand from the downstream dyes and Agrochemical industry. Although, growth in China's manufacturing activity softened in June as export demand weakened and producers struggled with supply bottlenecks. In addition, new export orders and production declined, which has weighed down the prices of Monochloroacetic Acid. Besides, supply shortages continued to hold back output in the manufacturing sector. Hence, Monochloroacetic acid FOB Qingdao prices were settled at around USD 955/MT, dropping nearly 8.6% during June.
Europe
In the second quarter of 2022, a shortage in the supply of key raw materials, Acetic acid, was observed across the European region, which was reflected in the rising prices of Monochloroacetic Acid in Europe. In addition, regional market trading activities accelerated with an increase in spot Monochloroacetic acid prices. At the same time, Germany's energy challenges increased with the surging Russia-Ukraine conflict impacting the specialty chemicals. Moreover, rising raw material prices squeezed the profit margin of primary downstream pharmaceutical and agrochemical manufacturers. Meanwhile, Surging gas prices in Europe have already caused some producers to seek energy price surcharges in their contract negotiations separately. Thus, Monochloroacetic Acid prices were nearly USD 2020/MT during June.
For the Quarter Ending March 2022
North America
During the first quarter of 2022, Monochloroacetic Acid (MCAA) prices in North America showed mixed sentiments. Because of the high price of the feedstock Acetic acid and Acetic Anhydride, prices surged in January 2022. On the other hand, increased demand from end-user Agrochemical Industries to produce herbicides and insecticides also contributed to the upward pressure on its prices. Although, throughout the mid-quarter, the price of Monochloroacetic Acid in the United States fluctuated considerably. In later half, coupled with the gloomy market sentiment, downstream demand appeared to be bearish. Monochloroacetic Acid prices increased moderately toward the conclusion of the quarter. Prices of Monochloroacetic Acid fluctuated by nearly USD 100/MT in Q1-2022.
Asia-Pacific
In contrast to the last quarter of 2021, Monochloroacetic Acid showed positive market sentiments in Asia-Pacific during Q1 2022. An increase in feedstock Acetic Anhydride and Acetic Acid prices kept the prices of Monochloroacetic acid in an upward trend. Increased demand from the downstream derivative Sodium Mono Chloroacetate and Ethyl Acetate market further rose its domestic market prices. In addition, limited supply and surging demand coupled with concerns over sky-high inflation took taken MCAA prices to new highs in the Indian market. Thus, during March, the Monochloroacetic Acid prices were assessed at USD 1443 /MT. Furthermore, the demand from the agrochemical sector including herbicides, insecticides increased because of the approaching sowing season, which weighed on the prices of MCAA.
Europe
The European Monochloroacetic acid market remained lower, with dwindling demand every month in Q1 2022. Demand stayed deterred, and the supply was ample, which brought about such a cost pattern. Major downstream derivative producer companies-maintained costs on their product despite slow interest and accumulation of inventories. Feedstock Acetic Acid and Acetic Anhydride showed a level of weak trading environment, and producers had moved from negotiation mechanism and instead decreased the costs because of adequate availability and lower production cost. Demand from the downstream agrochemical sector, including herbicides and insecticides, likewise slipped, hence the price of Monochloroacetic Acid showed a downward trend by nearly 5% in the European region.
For the Quarter Ending December 2021
North America
Despite fears of a new Coronavirus strain and Energy shortage in Europe, Monochloroacetic Acid (MCAA) availability in the United States remained limited due to restrictions on international shipments along several trade routes in Southeast Asia. Consistently growing prices for feedstock Acetic Acid also played a significant effect in constraining supplies. This is expected to relieve supply pressure in the USA, resulting in future price stability for Monochloroacetic Acid, which is used in a variety of herbicides. CFR Texas price in October were quoted as USD 1445/MT, then tumbled toward the end of the quarter with price reported as USD 1360/MT.
APAC
Monochloroacetic Acid prices in APAC region have fallen this quarter due to lower raw material costs. Upstream Acetic acid was noted to be rising during October for a variety of reasons, putting pressure on its downstream products to demonstrate buoyancy. However, the price of Acetic Acid has dropped by more than 10% during the quarter, causing a dramatic drop in the price of various downstream derivatives, during November. Monochloroacetic Acid prices have been hovering around INR 95000/MT Ex-Depot Mumbai in December.
Europe
A scarcity of critical raw materials was noted across the European area in the fourth quarter of 2021, resulting in higher Monochloroacetic Acid (MCAA) costs on the local market. Manufacturers sought items from a variety of sources as resources grew increasingly difficult to come by. As the quarter came to a close, the supply of Monochloroacetic Acid on the market improved. In terms of demand, the pharmaceutical, adhesives sector's offtakes remained high in Q4. FOB Hamburg USD 1785/MT in October then dipped to USD 1630/MT in December.
For the Quarter Ending September 2021
North America
In the North American region, spot prices of Monochloroacetic Acid showcased an upward trend for a major part of quarter 3 driven by the strong demand from the downstream agrochemical, pharmaceutical, and surfactant industries. Increasing feedstock acetic acid prices from mid-July until the last week of September had contributed partly to the surge in the pricing of MCAA. The closure of many Chlor-alkali manufacturing units on the US Gulf coast during the Hurricane season translated into disrupted supply across the region. Production had however eased at the end of Q3, and MCAA prices observed a fall in early Q4 as feedstock’s upward rally slowed down.
Asia Pacific
The overall market outlook of Monochloroacetic Acid demonstrated an upward trajectory across the Asia Pacific region during Q3 2021. In India, back-to-back positive revision in upstream Acetic Acid prices has adhered to another upward push in the pricing trend of Monochloroacetic Acid in the domestic market. Following the uptrend, the Ex-Works prices of MCAA escalated from USD 1106/MT to USD 1201/MT in western India the 3rd quarter. As the product is prominently imported from China, a host of challenges hovering over the supply chain continued to extend the deliveries of the Chinese origin cargoes during this quarter. Anaven, having a monopoly in India’s MCAA market was heard positively revising its prices to safeguard its profit margins from the consistent increment in Acetic Acid values.
Europe
In the third quarter of 2021, a shortage in the supply of key raw materials was observed across the European region which reflected into rising prices of MCAA in the domestic market. As materials became more difficult to obtain, manufacturers looked to secure products from different sources. The supply of Monochloroacetic Acid was improved in the market as the quarter moved toward its closure. In terms of demand, offtakes remained strong from the construction sector during Q3.
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
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.
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.
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.
