Monochloroacetic Acid Market Sustain a Downtrend in the US, see what traders anticipate

In third week of November 2024, Monochloroacetic Acid prices in the U.S. market witnessed a decline, primarily driven by lower feedstock acetic acid prices and a high supply in the market. Despite attempts to lower prices, the Monochloroacetic Acid downstream market remained sluggish throughout November, with weak trading activity and limited demand from end-users, which kept market sentiment under pressure.

Meanwhile, the U.S. fertilizer market experienced a slight uptick in demand, supported by favourable weather conditions that boosted the replenishment of soil nutrients for corn and soybean crops. In the Midwest, Monochloroacetic Acid demand remained stable, supported by strong financial stability in key agricultural regions. However, global fertilizer prices faced challenges, especially in the phosphate sector, where tight supply and production issues, exacerbated by export restrictions from China, kept prices elevated. The urea and ammonia markets also remained tight, driven by demand from Brazil and Southeast Asia, although concerns over affordability slowed the Fertilizer market in the U.S.

Monochloroacetic Acid production plants in the U.S. continued to operate at optimal rates to meet downstream demand. Despite ongoing contraction in the U.S. manufacturing sector, there were signs of a gradual easing in the downturn, with the pace of new order declines slowing. Monochloroacetic Acid production cuts were less significant, marking the smallest reduction in three months. However, workforce reductions and lower purchasing activity continued as inflationary pressures eased, and input costs rose at their slowest rate in nearly a year.

The U.S. Monochloroacetic Acid downstream fertilizer sector saw positive demand trends in November, as favourable weather conditions supported the fertilizer season (Autumn) and the replenishment of soil nutrients, particularly for corn and soybean crops. The Midwest’s financial stability helped sustain demand for fertilizers. However, global fertilizer prices remained under pressure, with tight supply due to production issues and export restrictions from China. Demand for urea and ammonia also remained strong, particularly from Brazil and Southeast Asia, but fertilizer prices slowed due to affordability concerns. Despite these challenges, the overall U.S. Monochloroacetic Acid downstream fertilizer market remained resilient, focusing on restoring soil nutrients after significant depletion during the growing season.

As per ChemAnalyst Database, in December, Monochloroacetic Acid prices in the U.S. market are expected to decline due to lower feedstock acetic acid prices and reduced demand from the downstream fertilizer industry. As the growing season progresses, demand from this sector is anticipated to decrease, leading to fewer product inquiries. However, lower interest rates are likely to bring positive developments in the Monochloroacetic Acid downstream market, though the impact is expected to remain subdued due to the off-season for the fertilizer market.