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.
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.
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.
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.
