The price of Monochloroacetic Acid in the Chinese market has constantly been deteriorating, supported by abundant supplies and low demand. The rising production rates among the manufacturing units caused prices to decline with subdued market sentiment. Also, reduced demand for downstream carboxymethyl Cellulose derivatives has impeded market fundamentals. According to the ChemAnalyst, Monochloroacetic Acid prices plunged by 1% in the week ending 15th July.

In addition, the Chinese market for Monochloroacetic Acid is facing a stalemate between supply and demand, and cost support is eroding. Besides, the Russia and Ukraine war, pandemic restrictions, and freight charges have prompted the domestic market price reduction.

On the raw material front, Acetic acid prices have continued to fall in the Chinese domestic market. As per the latest sources, one of the major producers of acetic acid in China, Hengli Petrochemical and Anhui Huayi, has planned to shut down their plants due to maintenance, which further impacted the pricing dynamics of Monochloroacetic Acid.

Similarly, In India, Monochloroacetic Acid prices have also faced a drop of around 1% to 2% weekly this month, owing to sluggish demand from the domestic market and cheaper imports from major exporters like China.

However, the surging in import costs from Germany, a significant European exporter, is the primary reason for the increase in Monochloroacetic Acid prices in European nations, including France, the Netherlands, Italy, and the UK. Also, the on-loading and off-loading sentiment has deteriorated in the last few weeks as the uncertainty around a European recession intensified while logistics problems persist in Germany.

According to ChemAnalyst estimation, “the price of Monochloroacetic Acid will likely to decline in the Asian market on the back of the weak feedstock Acetic acid value. On the other side, demand from the downstream sector will remain fragile in the upcoming weeks. In the meantime, in the European market, Monochloroacetic acid prices will follow the upward trajectory amid recession fear, while weak demand from end-user industries might be expected”.