Entering December 2024, Acetic Acid prices in the North American region have remained rangebound, with stable prices in the U.S. and Canadian markets amidst high supply and weak demand. This dynamic has prompted manufacturers to lower their operating rates for cost optimization.

The price stagnation is largely due to lower Methanol (Acetic Acid’s feedstock) costs and subdued demand from downstream industries, including the Paints & Coatings and automotive sectors. However, post-presidential election, demand has seen an uptick, particularly from the acetate sector, which is heavily utilized in Paints & Coatings for construction. The Federal Reserve's announcement of interest rate cuts has further boosted market sentiment, especially within the construction-linked downstream Acetic Acid market.

Methanex's monthly contract pricing reports indicate a notable increase in the contract prices of Acetic Acid feedstock methanol. However, this price surge has not yet been mirrored in the U.S. spot market. Despite this, there remains a high anticipation of rising feedstock methanol prices. Nevertheless, the impact on the Acetic Acid market has been minimal, as manufacturers have responded by reducing production rates to manage high supply levels and control inventory in the Acetic Acid market.

As of November, demand from the downstream paints and coatings sector has improved, driven by increased consumption from the construction industry. The Republican election win is expected to boost construction of apartments and homes, with a focus on deregulatory measures. However, zoning laws and building regulations are primarily determined at the state and local levels, which could influence the extent of these developments.

Celanese, a leading U.S. Acetic Acid producer, recently reported lower profits in its Q3 earnings. Despite the decline, sales volumes increased, driven by manufacturers offloading excess stocks of Acetic Acid at reduced prices. Celanese also announced a reduction in production volumes at its Clear Lake facility in response to oversupply.

In Canada, the Acetic Acid market faces uncertainty due to potential U.S. tariffs, which could disrupt supply chains, increase costs, and reduce competitiveness, likely leading to higher downstream product prices.

According to ChemAnalyst, the Acetic Acid market is expected to experience significant upward price trends in early 2025. Interest rate cuts have bolstered builder confidence, driving higher demand from the Paints & Coatings industry. Additionally, reduced operating rates by manufacturers and higher feedstock Methanol costs are projected to create positive pricing situation. Increased demand for downstream derivatives, including Vinyl Acetate Monomer and Purified Terephthalic Acid, further support this outlook. Notably, peak construction demand in April, June, and August 2025 is anticipated to sustain higher market activity.