Acetic Acid Prices Show Mixed Trends Across Global Markets, Asia Braces for Potential Improvements in August 2023

Texas, USA -In the global market, Acetic acid prices have shown variable trends as the low demand dynamics loomed large in the Western market while Asian region witnessed curtailed supply dynamics. While the western market has witnessed lacklustre prices due to high supply and stable demand from the US downstream sector, the Asian market could be on the verge of improvements.

In the western market, an abundance of supply coupled with sluggish demand from the European market has contributed to the subdued Acetic acid prices. Notably, the US downstream industry has demonstrated consistent demand, but a surplus of inventory and reduced methanol prices have caused prices to decrease. This trend has been accentuated by a contraction in the manufacturing sector, with the July PMI value for the US reaching 49, reflecting a negative sentiment.

Similarly, the German market has experienced a parallel decline in Acetic acid prices due to diminished demand from sectors like construction. Stable imports from Asia have maintained sufficient inventory levels, while the decrease in natural gas prices has led to a reduction in production costs, further impacting prices.

Contrastingly, the Asian market has seen a rise in Acetic acid prices, driven by supply constraints caused by plant maintenance activities in key facilities such as Xing Tai, Jiangsu Sopo Chemical, and Qinzhou. As a result, sellers have capitalized on limited inventories, offering the chemical at premium rates in the Chinese market.

Looking ahead, market experts from the ChemAnalyst Database predict a continued stable demand from the US downstream industry, with Celanese's anticipated operational commencement in Q3 potentially leading to higher inventories. In Europe, the upcoming August holidays are expected to dampen market activity, particularly in the construction sector, consequently affecting demand. Moreover, the Asian market may witness a decline in import prices, thereby influencing Acetic acid prices in Europe.

In China, the gradual resumption of operations in plants after maintenance shutdowns, combined with sluggish downstream industry demand, is likely to exert downward pressure on Acetic acid prices in the coming months.

Globally, Acetic acid prices have been going through critical fluctuation as the market fundamentals vary. As the industry navigates these complexities, market participants are bracing for potential shifts that could redefine the trajectory of Acetic acid prices across different continents.

Furthermore, it is expected that plant shutdowns in China may last till first half of the quarter and market participants can expect improvement in supply towards the H2 which may stabilize the Acetic acid prices in the Asian market.