Acetic Acid Prices Stabilize in U.S. as a Key Producer Celanese Resumes Operations
Acetic Acid Prices Stabilize in U.S. as a Key Producer Celanese Resumes Operations

Acetic Acid Prices Stabilize in U.S. as a Key Producer Celanese Resumes Operations

  • 13-Sep-2024 3:52 PM
  • Journalist: Li Hua

Texas (USA): Acetic Acid prices in the U.S. market have begun to stabilize following the resumption of normal operations at Celanese Corporation's plants, which had previously faced forced shutdowns. This restoration has led to the normalization of Acetic Acid inventories, relieving the supply constraints that had plagued the market. Celanese, a key player in the Acetic Acid industry, reported a 4% increase in production volumes from the previous quarter, despite a 2% decline in pricing, ultimately resulting in a 2% overall revenue growth. The boost in Acetic Acid production has also supported an increase in Vinyl Acetate Monomer (VAM) output, with ample supply balancing the rising demand for VAM.

In addition to the recovery in production, the U.S. labor market in the construction sector has shown signs of improvement. After a dip in employment levels in June and July, August saw a rebound in construction jobs, which is expected to drive higher demand for Acetic Acid in the coming months, particularly from the downstream paints and coatings industries. This sector, heavily reliant on Acetic Acid, is likely to benefit from increased employment in construction as activity picks up.

Domestic Acetic Acid production has remained steady, with facilities operating at optimal capacity. As a result, the U.S. Acetic Acid market is anticipated to remain bearish, as the abundant supply brought on by the return of Celanese’s operations ensures that inventory levels are sufficient to meet downstream demand. The previous supply shortages are unlikely to reoccur in the near term, contributing to a stable outlook for Acetic Acid prices.

Furthermore, rising methanol prices, as highlighted in a recent Methanex report, could positively influence Acetic Acid prices in the U.S. market over the coming weeks. Methanol is a key feedstock for Acetic Acid production, and upward trends in methanol pricing may bolster market dynamics.

While demand from downstream VAM and Purified Terephthalic Acid (PTA) sectors has been low recently, the full resumption of Celanese’s Acetic Acid plants is expected to drive increased production and supply. However, the broader manufacturing sector continues to face challenges, as evidenced by the U.S. manufacturing activities remaining below the point of balance, signalling contraction. This aligns with weak demand in the paints and coatings sector, particularly driven by underperformance in the construction industry.

According to ChemAnalyst, “Acetic Acid prices in the U.S. market are likely to face additional downward pressure due to potential disruptions from Hurricane Francine, which could affect demand from downstream industries.”

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