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.
For the Quarter Ending December 2021
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.
For the Quarter Ending September 2021
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.
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.
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
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.
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.
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
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.
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.
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
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.
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.
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.