The Acetic Anhydride market in Belgium remained stable in the second half of March and early April. This development was due to lower cost support from the feedstock Acetic Acid. In Addition, adequate supply has further subdued the Acetic Anhydride market growth. The demand for acetic anhydride has shown recovery, but it was not adequate to push prices upward.

In terms of domestic Acetic Anhydride manufacturing, the plants were operating at traditional rates with optimum capacity utilization. Logistics has remained smooth in the Belgian ports, and freight rates from the US market have declined, ensuring lower acetic anhydride landing prices.  Imports flow remained steady, particularly from the U.S, which is one key acetic anhydride exporter. EU-U.S. tariff escalations have created import market uncertainty, leading market participants to reassess acetic anhydride sources, especially for long-term contract volumes. On the production front, lower prices of energy market and feedstock acetic acid have pushed the market downwards as the traders were willing to sell off stocks at discounted prices to increase transactions.

On the domestic product demand front, the pharmaceutical applications continued to major consumer of acetic anhydride in Belgium. The demand from the sector has remained firm for API synthesis and the acetylation process. The buyers’ sentiments were cautious due to regulatory complexity and evolving trade tensions. The European Commission held discussions with the pharmaceutical to outline support for local production and streamline approval pathways. Although the pharma market remained stable amid tariff wars by the U.S., additional measures are being considered, creating uncertainty around forward procurement.

Other downstream, construction sector has shown mild signs of recovery with the uptick in hiring as reflected in the latest data released by Eurostat. However, this support was subjugated by slower off-takes from the Cellulose acetate derivatives used in the adhesive, paints and coating sector. Moreover, the demand from the agrochemical sector has remained soft, restrained by limited use of crop chemicals and limited export momentum across Europe.  Industrial demand for acetate-based intermediates and packaging applications also weakens buying sentiments, leading to overall pessimistic Acetic Anhydride market.

As per ChemAnalyst, no significant improvement in the prices of Acetic Anhydride is expected in the upcoming weeks. This is likely to take place amidst lower cost support from the feedstock Acetic Acid, and demand from the downstream market is likely to be needed-on-demand basis.  Furthermore, adequate stocks in the market are likely to subjugate any positive market sentiments.