This week, the Acetic Anhydride market in Belgium remained stable, primarily influenced by reduced import prices from China. Reduced import prices, coupled with a decline in feedstock Acetic Acid costs, due to weak demand from the Acetic Acid downstream construction sector have maintained steady inventory levels for Acetic Anhydride. Domestic production of Acetic Anhydride remains stable, with Celanese having resumed normal operations, ensuring ample supply of Acetic Anhydride feedstock Acetic Acid.

However, low import prices and reduced natural gas costs continue to place downward pressure on Acetic Anhydride prices. Shipments to Northern Europe and the Mediterranean are facing delays, with shipping rates down from their July peaks, although still higher than 2019 levels.

The lower import prices have also helped stabilize Acetic Anhydride inventory costs, despite increased procurement activity from the pharmaceutical sector.

Notably, AstraZeneca's strong financial performance in the first half of 2024 has driven demand for Acetic Anhydride. AstraZeneca’s significant revenue growth, driven by higher product sales and increased alliance revenue, offset a decline in collaboration revenue. In Q2, the company demonstrated substantial growth at constant exchange rates, with key therapeutic areas, including rare diseases, showing notable increases, further boosting Acetic Anhydride consumption. AstraZeneca achieved a gross margin of 82% on core product sales, a core operating margin of 33%, and a 5% increase in core earnings per share to $4.03. Additionally, the company declared an interim dividend of $1.00 and raised its full-year guidance for total revenue and core EPS growth, sustaining strong demand for Acetic Anhydride.

STADA, another key player in the pharmaceutical sector, has also contributed to the rise in Acetic Anhydride demand. STADA reported six-month sales exceeding €2 billion in the first half of 2024. The group’s revenues grew by 9% to €2.02 billion, outpacing market trends. STADA’s business segments—Consumer Healthcare, Generics, and Specialty—all saw growth, with the Specialty segment leading in expansion, driven by biosimilars and new brands in neurology and nephrology. CEO Peter Goldschmidt emphasized that the company’s performance, despite a challenging macroeconomic environment, underscores its resilient strategy, further supporting Acetic Anhydride demand in the sector.

Despite sufficient supply from both domestic and international sources, Acetic Anhydride market activity remains subdued. Weak downstream demand has kept transaction volumes low, with minimal purchasing from traders and factories.

In the short term, Acetic Anhydride prices are expected to remain weak, reflecting the sluggish market environment. While pharmaceutical demand, particularly from AstraZeneca, continues to support Acetic Anhydride consumption, the broader market for Acetic Anhydride remains under pressure, with little change anticipated soon.