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
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.
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.
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.
