Expensive Imports Leads Monochloroacetic Acid Prices to Rise in Europe in August 2024

In recent developments, Monochloroacetic Acid prices have been on the rise in both Germany and the Netherlands, a trend primarily driven by expensive import from China. Despite the upward trajectory in prices, demand for Monochloroacetic Acid from the downstream textile sector remains relatively weak in both the countries.

The broader industrial price landscape of Germany shows a slight decline in producer prices for industrial products. For July 2024, Germany's producer prices were down by 0.8% year-on-year (YoY), an improvement from the 1.6% decrease reported in June. Month-to-month, there was a modest increase of 0.2% in producer prices from June to July. This YoY decline in producer prices was largely driven by a significant 4.1% drop in energy prices, though energy costs saw a slight rise of 0.5% from June to July. When excluding energy, producer prices for July showed a 0.9% YoY increase and a 0.1% rise month-to-month. Similar sentiments were observed for the month of August 2024, however, the release of official data will clear the picture.

In the Netherlands, the trend for Monochloroacetic Acid is similar to Germany. Prices for Monochloroacetic Acid have been climbing, influenced by expensive imports from China. Despite this price increase, the demand for Monochloroacetic Acid from the downstream textile sector in the Netherlands has been disappointing, reflecting a broader trend of lower demand in this sector. However, the demand for Monochloroacetic Acid from the downstream textile industry has not kept pace with these rising prices, resulting in a slower than expected market response.

According to Statistics Netherlands (CBS), the calendar-adjusted retail turnover for June 2024 fell by 0.7% YoY, with a 1% decrease in sales volume. Without calendar adjustment, retail turnover would have been 2.4% lower compared to the previous year. The non-food sector did see a slight increase of 0.2% in turnover, with sales volume up by 0.9% YoY. However, specific sectors, including footwear, leather products, furniture, and clothing, saw reduced turnover. Online retail turnover, on the other hand, increased by 2.2% YoY, with core online retailers experiencing a robust 9.2% rise. Multi-channel retailers, which sell online as a secondary activity, saw a decline of 6.1% in online sales turnover YoY. Online clothing and fashion items also faced decreased turnover, underscoring the subdued market conditions affecting various sectors.

Overall, while Monochloroacetic Acid prices are on the rise in Germany and the Netherlands, driven by lower Monochloroacetic Acid supply dynamics and expensive imports from China, the lacklustre demand from the textile sector highlights ongoing challenges within the market.

According to ChemAnalyst, Prices for Monochloroacetic Acid are expected to rise further due to increased costs of feedstock Acetic Acid and limited market supply. However, the performance of the downstream textile industry is anticipated to remain weak.