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.
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.
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
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.
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.
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.
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.
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.
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.