For the Quarter Ending September 2024
North America
In the third quarter of 2024, the Acetic Anhydride pricing landscape in North America exhibited a mixed trend, with a notable upward trajectory in the first half of the quarter while prices remained subdued in the second half.
This fluctuation was driven by several key factors, including increased demand from various industries, particularly pharmaceuticals and manufacturing, alongside supply constraints and rising production costs. Consequently, prices surged compared to the same quarter last year. Within the USA, which experienced the most significant price fluctuations, there was an increase from the previous quarter, with prices rising between the first and second halves of the third quarter. This trend indicates a consistent upward trajectory in Acetic Anhydride prices, reflecting a positive pricing environment.
Furthermore, various pharmaceutical companies in the US, such as Johnson & Johnson, reported record revenue growth in third quarter 2024. The quarter's performance highlights a robust demand-supply balance, cost dynamics, and sector-specific requirements, all contributing to the overall price escalation.
APAC
The third quarter of 2024 for Acetic Anhydride in the APAC region has been characterized by a significant decline in prices. However, in July, prices showed an upward trend, primarily driven by increased production costs due to higher Acetic Acid prices. Following this, prices fell, influenced by several key factors. Market dynamics revealed a notable decrease in demand from downstream industries, particularly the pharmaceutical sector, which led to oversupply and subsequent price reductions. Additionally, lower import prices from major exporting nations further contributed to the downward trend. China experienced the most substantial price changes, with overall trends in the region indicating a negative correlation with prices, marked by a notable -28% decrease compared to the same quarter last year. When compared to the previous quarter in 2024, prices recorded a -7% decline, reflecting ongoing market challenges. Notably, there was a -2% price difference between the first and second halves of the quarter, indicating a continued downward trajectory. The quarter-ending price in China stood at USD 671/MT of Acetic Anhydride FOB Qingdao, highlighting the prevailing negative sentiment in the pricing environment.
Europe
In Q3 2024, the Acetic Anhydride market in Europe experienced an increase in the first month of Q3 (July) due to higher feedstock Acetic Acid prices due to Halt in Celanese production of Acetic Acid and later notable decrease in prices was observed as the Feedstock Acetic Acid prices lowered throughout Q3, influenced by several key factors. The market saw a -10% change in pricing compared to the same quarter last year, reflecting a significant downward trend. Factors contributing to this decline include stable upstream methanol prices and reduced market demand due to a skilled labor shortage in the pharmaceutical sector. Additionally, the ongoing crisis in the Red Sea disrupted global supply chains, impacting Asian markets and leading to increased delivery costs and delays. Belgium, in particular, witnessed the most significant price changes in the region, with a recorded 2% decrease from the previous quarter in 2024. The quarter also saw a -3% price difference between the first and second halves, indicating a gradual decline. Ultimately, the quarter-ending price for Acetic Anhydride in Belgium stood at USD 1100/MT FD Antwerp, underscoring the prevailing negative pricing environment in the region.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, Acetic Anhydride prices in North America saw a consistent decline due to several key factors. A downturn in demand from downstream industries like agrochemicals, surfactants, and pharmaceuticals, combined with substantial inventory levels held by domestic producers, pressured prices downward.
Additional supply from Europe and Asia exacerbated this trend. Fluctuating raw material costs, particularly the decline in Acetic Acid and Acetic Anhydride prices, further lowered production costs and enabled price reductions. In the USA, Acetic Anhydride prices decreased compared to the same quarter last year, reflecting subdued industrial activity and seasonal slowdowns in agricultural activities. Prices also declined from the previous quarter, indicating a persisting bearish sentiment and a progressively weakening market.
Overall, Q2 2024 was marked by significant downward pressure on Acetic Anhydride prices in the USA due to both demand and supply-side dynamics. It is anticipated that the price of Acetic Anhydride is likely to increase amid firm demand from the downstream pharma sector and additionally, it is anticipated to increase amid rise in the rise of feedstock Acetic Acid. Thus, the market outlook for Acetic Anhydride for US market seems optimistic thus leading to increase in procurement activities as the pharma sector is set to grow for upcoming quarter.
APAC
In Q2 2024, the Acetic Anhydride market in the APAC region experienced a notable decline in pricing, influenced by several critical factors. A combination of robust supply, subdued demand from downstream industries, and a reduction in production costs contributed to this downward trend. Increased inventories and constrained shipments further pressured manufacturers to lower factory quotations to stimulate market engagement. Additionally, the market witnessed diminished cost support from feedstock acetic acid, as its prices remained weak and failed to provide the necessary impetus for acetic anhydride.
China, as the predominant player in the region, saw the most significant price fluctuations. The Chinese market faced a combination of high inventory levels, weak demand from downstream industries such as construction and pharmaceuticals, and declining methanol and coal prices, which collectively drove acetic anhydride prices downward. Seasonal factors also played a role, with low industrial activity during specific periods contributing to price reductions.
Comparatively, the price of Acetic Anhydride in China decreased from the same quarter last year and showed a significant drop from the previous quarter in 2024. Within Q2 itself, prices further declined from the first to the second half of the quarter. The quarter concluded with Acetic Anhydride prices at USD 715/MT FOB Qingdao. Overall, the pricing environment remained predominantly negative throughout the quarter, driven by excess supply, weak demand, and lower feedstock costs, reflecting a consistent downward sentiment in the market.
Europe
Q2 2024 has been a dynamic period for Acetic Anhydride pricing in the Europe Region, characterized by a marked upward trend driven predominantly by several key factors. The persistent labour shortages in the pharmaceutical sector, coupled with heightened demand propelled by innovation and robust exports, have exerted significant upward pressure on the market. Sufficient market stocks, combined with stable upstream methanol prices, have continued to support this trend. Furthermore, geopolitical tensions in the Red Sea have exacerbated shipping bottlenecks, increasing freight costs and leading to further price hikes. The European Central Bank's decision to reduce interest rates by 25 basis points to 3.75% has also played a role in bolstering market sentiment and driving demand, despite cooled inflation rates for input and output costs. This quarter saw a concerted effort to mitigate logistical challenges, yet the ongoing crisis has led to increased operational expenses, further affecting the cost of Acetic Anhydride.
Focusing on Belgium, which experienced the most significant price changes, the overall trend has been consistently upward. The seasonality effect was evident, with a 6% price increase between the first and second half of the quarter, reflecting typical restocking activities. Compared to the same quarter last year, prices have decreased by 10%, highlighting a correction from previously inflated levels. From the previous quarter in 2024, there was a 3% increase, indicating a gradual recovery. The latest quarter-ending price in Belgium for Acetic Anhydride stands at USD 1140/MT FD Antwerp, underscoring a positive pricing environment overall. This sentiment reflects a resilient market navigating through challenges with a steady rise in prices, driven by fundamental demand and supply dynamics.
For the Quarter Ending March 2024
North America
The first quarter of 2024 saw a stable market for Acetic Anhydride in the North American region. The market was influenced by steady demand from downstream industries, consistent supply dynamics, and ongoing destocking activities. Although there were no significant plant shutdowns reported during this quarter, the USA market witnessed an increase in the price of Acetic Anhydride in the second half compared to the first half.
The demand from the downstream construction industry has remain strong and is further projected to increase further due to government initiatives aimed at boosting the construction workforce. These initiatives include apprenticeship programs and community college programs, which are likely to bring positive sentiments to the market and lead to short-term expansion.
However, Acetic Anhydride prices increased from the previous quarter in 2023 (Q4). Despite these disruptions, the supply of Acetic Anhydride in the market was not significantly affected, indicating resilience in the industry. Overall, the first quarter of 2024 showed a stable and promising market for Acetic Anhydride in the North American region.
APAC
In the first quarter of 2024, the APAC region experienced a significant decline in Acetic Anhydride prices, influenced by various factors. Chief among these was the weakened support from Acetic Acid, a vital feedstock, contributing to the overall price decrease. Additionally, heightened inventory levels and subdued demand from sectors such as laundry and detergent further exacerbated the downward pressure on prices. Particularly in China, substantial price shifts were evident, with a 3% decrease compared to the same period last year. Quarter-on-quarter, prices plunged by 15%, indicating a notable decline, particularly with an 11% difference between the first and second halves of the quarter. Furthermore, the lack of substantial improvement in demand from overseas markets has led to overall subdued market growth in China. As the quarter concludes, the latest price for Acetic Anhydride in China stands at USD 747 per MT FOB Qingdao. Overall, the pricing environment for Acetic Anhydride in the APAC region was predominantly negative, characterized by a consistent decrease in prices throughout the quarter.
Europe
In Q1 2024, the European Acetic Anhydride market experienced a downturn influenced by several factors. Chiefly, the subdued pricing of its primary feedstock, Acetic Acid, due to stable Methanol prices, was a major contributor. This lack of robust cost support, combined with elevated inventory levels, exerted downward pressure on Acetic Anhydride prices. Despite steady import prices from China, there was no uplift in Acetic Acid pricing. The European Central Bank's decision to maintain a high interest rate also dampened demand by reducing purchasing power among downstream consumers. Furthermore, the Purchasing Managers' Index (PMI) indicated a contraction in the manufacturing sector, impacting chemical demand. Despite stable supply, anticipated increases in raw material and energy prices failed to stabilize prices. Market sentiment remained cautious, influenced by broader economic indicators and sector-specific challenges, such as those in the laundry and detergent industry, which is a significant consumer of related products. Despite steady demand for such products, it was insufficient to positively affect Acetic Acid prices during the quarter.
For the Quarter Ending December 2023
North America
In Q4 2023, the North American Acetic Anhydride (AA) market displayed mixed dynamics. Initially stable, prices were supported by steady demand from certain sectors and consistent feedstock costs. Mid-quarter fluctuations arose from varying demand in pharmaceutical intermediates and reduced utilization in cellulose acetate, influenced by factors like shifting consumer preferences and decreased construction activity.
Short-term supply disruptions and evolving trade dynamics, particularly from Asia, contributed to volatility. Towards the quarter's end, prices declined due to easing acetic acid costs, increasing inventory levels, and a competitive landscape among producers.
Regional variations were observed, with stable to higher prices in the Gulf Coast, more volatility in the Northeast and Midwest, and slightly lower prices on the West Coast. Lower AA prices benefited downstream industries facing cost pressures, while mixed price movements likely impacted profitability for some producers, contingent on production costs, hedging strategies, and regional performance.
APAC
The APAC region's Acetic Anhydride market witnessed a mixed quarter in Q4 2023, with several factors impacting the market. Firstly, major production plants' operational failures resulted in lower inventories, leading to higher import prices. Secondly, heavy destocking market activity and lower demand from the downstream industry led to lower prices. However, restocking activity and increased demand from downstream industries led to higher prices towards the end of the quarter. China witnessed the most significant changes in pricing trends, with a bearish market situation and a moderate supply. The prices of feedstock Methanol were expected to be lower, and the demand from the downstream industry was likely to decrease. The prices of Acetic Acid were expected to be lower. The price percentage change from the previous year's Q4 was 4%, indicating a stable market. However, the quarter-on-quarter percentage change was -20%, indicating a significant decrease in prices. The price percentage comparison between the first and second half of the quarter was -23%. The latest/quarter-ending price of Acetic Anhydride FOB Qingdao in China was USD 823/MT. In conclusion, the Acetic Anhydride market in the APAC region witnessed mixed pricing trends in Q4 2023, with several factors impacting the market, particularly in China.
Europe
In Q4 2023, the European Acetic Anhydride (AA) market experienced a 5-10% decline in prices compared to Q3, following a period of relative stability. This downturn was influenced by reduced demand in key downstream industries such as Cellulose Acetate, Pharmaceuticals, and Paints and Coatings. Ample supply, stable production capacity, and moderating acetic acid feedstock costs also contributed to the price decrease. Increased competition among European producers and regional variations played a role, with Western and Central Europe having higher prices due to transportation costs, while Eastern Europe had lower prices due to proximity to production facilities. Lower AA prices benefited users in various industries facing cost pressures, but it likely impacted profitability for some producers based on production costs and hedging strategies.
For the Quarter Ending September 2023
North America
The decline in the US Acetic Anhydride market in Q3 2023 can be primarily attributed to a simultaneous decrease in the prices of its essential feedstock, Acetic Acid. Additionally, there was a consistent demand from both the downstream pharmaceutical and detergent industries, contributing to stable demand throughout the quarter, which further subdued the Acetic Anhydride market. Taking a broader economic perspective, the Purchasing Managers' Index (PMI) for the US market dipped below 50, indicating a significant contraction in the manufacturing sector's activity in Q3. Moreover, international market demand remained subdued, leading to a pessimistic market view due to low downstream inquiries. Furthermore, the interest rate, which increased to 5.5% as the Federal Reserve announced its fed funds rate hike in July from 5.25% to 5.5%, further subdued the purchasing power of consumers in downstream industries. This broader economic context significantly contributed to the overall subdued performance of the Acetic Anhydride market in the US during the third quarter of 2023.
APAC
In the third quarter, the Acetic Anhydride market in China witnessed a significant increase in prices, primarily driven by the rising costs of its key raw material, Acetic Acid. This surge was further intensified by consistently low inventory levels in the market. Additionally, there was a steady demand from both the downstream pharmaceutical and detergent industries, contributing to stable demand throughout Q3. On the supply side, a decrease in the operational capacity of Shandong Acetic Anhydride manufacturers led to a tightening of spot supply for acetic anhydride. Production facilities, however, maintained consistent operation, effectively meeting the strong demand from downstream industries during Q3. The festive season also played a role in boosting market transactions, resulting in continuous demand from existing inventories. Sellers, in anticipation of a potential price increase, held onto their inventories. However, the PMI performance was variable in Q3, with values falling below 50 in July, indicating a contraction in manufacturing activity, and rising above 50 in August and September, signalling an expansion in manufacturing activity.
Europe
Throughout Q3 2023, the Acetic Anhydride market in Germany experienced a downturn, characterized by bearish trends in the third quarter. These unfavourable developments result from a combination of factors. Firstly, the absence of adequate cost support from the primary feedstock, acetic acid, due to reduced demand from its downstream products—ethyl acetate and butyl acetate—stemming from decreased demand in the construction industry, has disrupted the stability and cost-effectiveness of production. Additionally, stable demand from the pharmaceutical and detergent industries has further subdued the growth of the Acetic Anhydride market. This can be attributed to persistently high interest rates since July, currently standing at 4.5%, which have discouraged investment and led to reduced demand for chemicals such as Acetic Anhydride. Furthermore, a consistent flow of imports from the international market, particularly from China, has resulted in a surplus in inventory, providing sufficient levels to meet the demand from downstream industries. This surplus has further suppressed the growth of the Acetic Anhydride market in Germany in Q3.
For the Quarter Ending June 2023
North America
In the US market, the prices of Acetic Anhydride have declined constantly this quarter. This was due to declining feedstock prices of Acetic Acid prices. Furthermore, demand for the construction industry has decremented in the first half of the quarter, and in the second quarter, demand for construction has incremented as US new home sales jumped to 12.2% in May. Furthermore, continued high inflation and economic uncertainty in the first half of Q2 further subdued market growth. Additionally, in the Second half of Q2, there was decremented in inflation, but rising inflation rates created negative market sentiments. Additionally, the plants were operating at normal rates amid declining demand from the downstream industry, which led to an overflow of inventories in the market. Furthermore, there was a significant decrement in the prices of Natural Gas in Starting of Q2, and the price of Natural Gas recovered slowly in the second quarter, causing decrement in production costs. In Addition, due to the constant declining prices of Acetic Anhydride, the procurement buyers were hesitant to procure large orders.
APAC
In the Asian market, the prices of Acetic Anhydride have been largely stable first half of the quarter, but the prices decrement slightly in the second half of Q2. This was due to weak demand from the downstream industry, like the pharma industry. The prices of Acetic Acid in China have decreased since the beginning of Q2 in China, which led to the decrease in Acetic Anhydride prices. Additionally, there was a decrement in Coal prices as imported coal prices from the Australian market were offered at a discount, which caused a decrement in production costs. Furthermore, there were high inventories in the market to meet demand from the downstream industry. Moreover, slow economic recovery and deflation problems in China continued to grip the Acetic Anhydride market, creating an overall pessimistic market view. Additionally, the plants were operating slower due to weak downstream demand. In Addition, demand from the international market declined amid a global economic slowdown. Thus, the prices of Acetic Anhydride as of June were stated at USD 752/MT Acetic Anhydride FOB Qingdao.
Europe
In the European market, there was a constant decline in prices of Acetic Anhydride. This was due to continued high inflation and economic uncertainty that continues to grip the purchasing power of end-use industries consumers. Additionally, there was a constant flow of cheap imports from the Asian market, which led overflow of inventories in the market. Sellers were bound to offer discounts to increase market transactions. Furthermore, there was a decrement in Natural gas prices which led to a decrement in input production costs. In Addition, the PMI index remained below 50, which indicated a declining Manufacturing sector in Europe. Additionally, the freight charges declined from Asia, which further led decrement in import prices from China. Furthermore, there was a significant decrement in the prices of Natural gas, which led to a decrement in the input production cost. Moreover, due to bearish market trends, buyers were hesitant to procure large orders. Thus, as of June, the price of Acetic Anhydride was stated at USD 981/MT FD Hamburg.
For the Quarter Ending March 2023
North America
In the US market, Acetic anhydride prices showed a mixed trend during the first quarter of 2023. In the first couple of months, steady cost pressure from Acetic Acid and firm demand fundamentals from Pharma and cellulose acetate industry resulted in steady offtakes, which culminated in a steady rise in prices. However, the Acetic anhydride market turned bearish in the last month on the back of weak feedstock prices and stable offtakes. Furthermore, the labor strikes on the US West Coast ports resulted in temporary shutdowns of the ports while Labour Unions have yet to come to an agreement which resulted in supply chain disruption throughout the US.
APAC
In the Asian market, Acetic anhydride prices have shown a mixed trend in the first quarter of 2023. After a bearish start to the quarter due to weak demand dynamics and stable cost pressure, Acetic Anhydride prices revived into the second month of the quarter. Improved demand from industries, including the cellulose acetate industry, coupled with stable demand from the Pharma industry, resulted in optimistic price realizations. However, Acetic anhydride prices declined in the last month quarter of 2023 as cost pressure from Acetic acid declined while offtakes remained largely stable with limited to no new inquiries. Thus, as of March 2023, Acetic Anhydride prices were assessed at USD 766 per MT on a FOB basis.
Europe
In the European market, Acetic Anhydride prices remained largely stable throughout the first quarter of 2023. The steady demand from the downstream pharmaceutical industry coupled with stable consumption rates from the cellulose acetate industry resulted in consistent prices. However, feedstock Acetic acid prices declined towards the second half, which culminated in weak cost pressure on Acetic Anhydride, and thus prices showed a marginal bearish trend in the last month of the quartet. Meanwhile, the imports from the US as well as Asian markets remained firm on the European shores as the freight market eased further in Q1 2023.
For the Quarter Ending December 2022
North America
In the US market, weak demand fundamentals shrouded a major part of the last quarter of 2022. The constant threat of a recession coupled with holidays resulted in snug consumption rates from downstream industries, which resulted in limited demand pressure over Acetic Anhydride. Meanwhile, the consistent fall in feedstock Acetic Acid prices provided limited cost support, which further eased the prices of Acetic Anhydride. Q4 witnessed a sharp fall in freight charges on the US routes resulting in ample availability of imports from the Asia pacific market. The demand from downstream pharma, cleaning, and other industries have deteriorated throughout the quarter as market participants reported ample inventory levels in the domestic market.
Asia Pacific
Acetic Anhydride prices declined in the last quarter of 2022 as demand from downstream eased while the cost of production eased owing to stable weak feedstock. Acetic acid prices while supply dynamics remained stable. The operating rates of several capacities have been reported to be stable hence availing ample material in the market. Domestic players have reported stable level of inventory levels in the market. However, constrained logistics have contributed to snug supply chains as the lockdowns increased in China. Meanwhile, international demand dynamics also remained stagnant to weak, resulting in weak exports to the overseas market.
Europe
European market witnessed a consistent decline in the Acetic Anhydride prices owing to stable demand from downstream pharma and other industries amid a steady flow of imports and domestically produced material. The sharp fall in freight charges on European routes has assisted in the ample availability of imports from the Asian market as demand dynamics in the Asia-Pacific region remained snug. Meanwhile, in the domestic market, ease in feedstock Acetic acid prices resulted in weakened cost support resulting in a drop in Acetic Anhydride.
For The Quarter Ending September 2022
North America
Acetic Anhydride prices declined consistently throughout the three months of the penultimate quarter of 2022 due to weak cost support and stable to weak demand dynamics. Feedstock Acetic acid prices have fallen sharply as the upstream Methanol prices eased in Q3, which deteriorated the cost pressure over Acetic anhydride. Meanwhile, energy feedstock prices did go high; however, they had a limited impact on the prices of Acetic anhydride. Market participants reported ample supply and inventory levels to cater to the domestic demand, while consumption from the overseas market remained sluggish owing to weak volume offtakes from the European market. Thus, after September 2022, Acetic anhydride prices were assessed at USD 1610 per MT on a FOB basis.
Europe
European countries faced the dire economic condition of stagflation, where demand dynamics plummeted while inflation rates rose substantially. Acetic Anhydride market dynamics remained volatile as the domestically produced material was priced higher due to the hefty cost of production owing to high energy prices. At the same time, imported material prices were substantially lower compared to domestically produced materials. High energy prices and lower demand from the downstream construction industry meant manufacturers were prompted to cut operation rates. Hence, Acetic anhydride prices were assessed at USD 1330 per MT on FD basis after the conclusion of Q3.
Asia Pacific
Acetic Anhydride prices fell throughout the quarter owing to weak feedstock prices and sluggish demand in the domestic and international markets. Feedstock Acetic acid prices declined throughout the quarter, which eased the overall cost of production. Meanwhile, demand dynamics remained under pressure owing to frequent lockdowns in the country due to the covid pandemic. The performance of the debt-ridden construction industry has been underwhelming, and the volume of offtakes remained muted. Thus, after the conclusion of Q3, Acetic Anhydride prices were assessed at USD 877 per MT on a FOB basis in China. At the same time, supply chains in Northeast Asia and South Asia remained under severe stress as typhoons caused halts in port activities in China, Japan, and South Korea.
For the Quarter Ending June 2022
North America
The prices of Acetic Anhydride fluctuated in North America during the 2nd quarter of 2022, backed by changing demand and supply dynamics. Though the market value of feedstock Acetic Acid mainly rose throughout the quarter, Acetic Anhydride showcased an unstable pricing trend. The downstream demand from plastics, dyes, and pharmaceutical industries was flickering. In one month, it was strong; in another, it faded away, causing inconsistency in Acetic Anhydride price. Furthermore, the fluctuation in energy costs and freight charges also led to the instability in the price of Acetic Anhydride. In the USA, the prices of Acetic Anhydride firstly surged in April, became stable in June, and then started declining in June.
APAC
India and China witnessed different pricing trends for Acetic Anhydride in the second quarter of 2022. In India, the prices of Acetic Anhydride declined consistently from April to June, backed by weak downstream demand and lower upstream costs. The enquiry for Acetic Anhydride from dyes, plastics, and pharmaceutical industries decreased throughout the quarter. Furthermore, as the market value of feedstock Acetic Acid was slumping, so did the price of Acetic Anhydride. At the same time, the price value of Acetic Anhydride in China inclined till May and then started declining in June. Inconsistency in consumer buying patterns and trading activities led to the fluctuation in the prices of Acetic Anhydride during the quarter. Besides, flickering crude oil prices and freight charges were other factors contributing readily to the price instability of Acetic Anhydride in the Asia-Pacific region.
Europe
Mirroring the Acetic Anhydride trend in the Indian market, the prices of Acetic Anhydride plummeted consistently during the entire quarter 2 of 2022 in the European countries. The decremented offtake from downstream industries such as plastics, dyes, and pharmaceuticals was one of the significant factors behind this price slump of Acetic Anhydride. Furthermore, lower upstream cost amidst declining feedstock Acetic Acid price value which reduced the manufacturing cost, further contributed to the price plunge in Acetic Anhydride. Altogether, weak demand from end-user industries and the overflowing inventories leading to a consistent supply rate combinedly supported the price drop of Acetic Anhydride in Europe.
For the Quarter Ending March 2022
North America
In Q1 2022, the costs of Acetic anhydride slipped all through the first quarter in USA because of feeble Acetic acid market and deterred market sentiments. Further disintegrating demand is set to continue as operating rates for significant derivative portions including perfumes and dyes endeavors were apparently high rates in the U.S and gave frail visibility on deals and prices with the succeeding month of the quarter. We've also seen first the tepid visibility in the medium-term pricing environment continued to expect sufficient feedstock methanol inventories with weak market essentials decreasing the costs. Exports to European Nations were additionally impacted as the oversupplies of product in the overseas impacted the costs. In this quarter, the cost of Acetic Anhydride in US for March was USD 1100/ton CFR Louisiana.
Asia Pacific
In this quarter, the costs of Acetic Anhydride stayed stable with lukewarm market sentiments in the domestic market of India. In February 2022, The Bureau of Indian Standards (BIS) enforced new quality control guidelines for Methanol imports which is expected to create problems for the dealers to meet the specifications. Underlying market sentiments for Naphtha stayed weak on determined worry over balanced out olefin and aromatic margins. Utilization of Acetic Anhydride in Pharmaceuticals ventures additionally expanded with speeding up request from the end users. In India, the cost of Acetic Anhydride towards the quarter end was assessed at USD 2036/ton Ex-Delhi NCR. In China, the market stayed weak, and the Commodity Exchange prospects likewise reduced as the demand from downstream undertakings was not steady. In China, the cost of Acetic Anhydride towards the quarter end was USD 1074/ton FOB Qingdao in the first quarter of 2022.
Europe
European Acetic Anhydride market stayed on the lower side with declining demand with every month in Q1 2022. Demand stayed deterred and the stockpile was adequate which brought about such cost pattern. Major downstream derivative producer companies-maintained costs on their product despite slow interest and accumulation of inventories. Feedstock Acetic Acid displayed level of frail trading environment and producers had moved from negotiation mechanism and rather decreased the costs because of adequate accessibility and lower production cost. Downstream dyes and coating market had likewise slipped, and the demand/supply harmony become unstable. In Germany, the cost of Acetic Anhydride was assessed at USD 2100/ton CFR Hamburg.
For the Quarter Ending December 2021
North America
In North America, the nonstop plunge in the price trend was seen with weak interest and adequate stock. However, the costs were on the high side whenever compared with Q2 and Q3 for that very year. The feedstock methanol prices continued to be increasing on the back of crude oil price shooting up. Downstream Pharmaceuticals had taken the centre for most of the acetic anhydride consumption. November and December demand were observed to be slow if compared with October. Shortage of Raw material Methanol had put impact on the prices in October which started to recover in following months. Plastic and dyes industries growth was aided by low base and improvement in demand from the consumers. Acetic Acid prices were also surged in Q4 2021 with remarkable growth in the export market to European countries mainly Germany, Netherlands.
Asia Pacific
In Q4, the demand of Acetic Anhydride was robust with healthy downstream market. In China, the prices were surged to $1721/MT FOB Qingdao in the last week of December with increase in feedstock Methanol and Acetic acid prices, the upward momentum of Acetic Anhydride increases, and market rose. The operating rate of downstream enterprises were observed to be operated robust with elevated efficiency. In Monthly comparison in Q4, October the demand was on the upper side compared to November and December as the market was peaked out with the maximum prices. In the remaining months. Chinese methanol prices closed the week lower, which were underpinned by tepid demand and lower crude oil prices. Imported spot cargoes of Methanol were also thinned in the last week of November. Methanol imports from Iran to China appeared to be sufficient for January 2022 with at least 160,000MT methanol offered in a tender which closes on 6 December.
Europe
In Q4, the prices of Acetic Anhydride were observed to be on upper end with improved demand and healthy downstream market. Some Acetic Anhydride producers had considered surcharges in consider to higher energy cost as well as the cost and lack of container availability. Tight acetic acid market due to raw material shortage faced significant pushback from the buyers. Major Acetic Anhydride producers had kept prices surged in face of spiralling gas and electricity cost with improved exports from Belgium and United Kingdom. Downstream demand was also improved from Q2 and Q3 with more consumer demand and efficiently performing industries.
For the Quarter Ending September 2021
North America
In North America, consistent scarcity of feedstock Acetic Acid was observed in the third quarter due to the disrupted production and supply chain. Moreover, In the US Gulf region, harsh weather conditions in August end compelled manufacturers to halt production for almost 7-14 days which further tightened the supply of Acetic Anhydride across the region. Henceforth, significant demand from downstream pharmaceuticals sector coupled with the limited feedstock availability led to the rise in the prices of Acetic Anhydride in the region.
Asia
In Q3 of 2021, Acetic Anhydride showcased mixed sentiments throughout the quarter. FOB Qingdao China Acetic Acid witnessed downward trajectory, falling to USD 1540 per MT in early August owing to the oversupply of Acetic Anhydride in China. However, by August end, a severe congestion was witnessed on several ports of China due to harsh weather conditions. Zero tolerance protocols in China also affected the global market as production in various plants remained halted which directly influenced the supply across the globe. Additionally, the persistent shortage of feedstock Acetic Acid coupled with the temporarily shutdown of Nanjing’s Celanese Acetic Anhydride plant in September further tightened the Acetic Anhydride market. In the meantime, Acetic Anhydride demand remained sufficient to trigger rise in the domestic prices. Therefore, a hike by around 3.5% was observed in China with Acetic Anhydride prices reaching USD 1915/MT FOB Qingdao in September 2021.
Europe
During Q3 2021, European market witnessed steady demand for Acetic Anhydride owing to the significant consumption from downstream pharma sector. However, a steep inclination in the prices of Acetic Anhydride was observed due to the shortage of raw materials as imports from Asia and USA were affected because of port congestion in China and hurricane Ida in USA respectively, in August. In addition, shortage of shipping containers and fuming freight cost also contributed to the escalating price trend of Acetic Anhydride across the region.
For the Quarter Ending June 2021
North America
Acetic Anhydride prices showcased a steep upward trajectory during this quarter, as the demand improved effectively against the low material availability. Post the disruption caused by the winter storm in the Gulf of USA, manufacturers remained busy in releasing previous orders, while getting fresh demand from other downstream users. On the demand side, pharma sector was deemed as the major consumer for Acetic Anhydride in the region. Henceforth, a rise by around 3.7% was observed, which slowed down gradually and finally reached USD 1225/MT for FOB Texas during in June 2021.
Asia
Asian market experienced a steep rise in prices of Acetic Anhydride, backed by severe shortage of feedstock Acetic Acid. In China, prolonged plant shutdowns in Jiangsu and Henan province decreased the availability of feedstock chemicals in the country. Meanwhile, the demand for Acetic Anhydride remained high enough which triggered the rise in the domestic prices. Thus, under supply shortage, its prices skyrocketed during this time frame. Therefore, rise of around 4% was observed in China, reaching USD 1284/MT at FOB Qingdao in June 2021.
Europe
Demand for Acetic Anhydride in the European region remained firm during Q2 2021 due to the sturdy consumption from downstream pharma sector. Besides, shortage of feedstock chemicals due to weak imports from Asia and USA also impacted the product availability across the region and led to a steep inclination in prices of Acetic Anhydride. In addition, fuming freight cost and shortage of shipping containers also exerted an additional burden on the prices of Acetic Anhydride across the region.
For the Quarter Ending March 2021
North America
The North American Acetic Anhydride market experienced firm demand from the downstream sector despite lower product availability across the region. Production remained curtailed due to unplanned turnarounds on several plants near the gulf coast of USA. Celanese declared force majeure at its Texas based Acetic Anhydride plant which reduced the availability across the region. Meanwhile the demand from the pharmaceuticals sectors sustained strong sentiments throughout the quarter, and hence the prices were tracing an upward trajectory. FOB Texas prices were settled at USD 1160/MT in March from USD 1070/MT levels in January.
Asia
The Asian market witnessed firm demand from the domestic pharmaceuticals sector and critical shortage of the product across the globe. The production cuts from USA due to cold snap exacerbated by tight supply from China, created a critical shortage of Acetic Anhydride across the APAC region. Thus, the FOB prices followed an upward trend and reached USD 1241/MT (March 2021) in the Chinese market, while in India, FOB price of Acetic Anhydride rose by 7.19% within the quarter and settled around USD 919.13/MT.
Europe
High demand from the pharmaceutical sector drove the European Acetic Anhydride market during Q1 2021. While curtailed production activity in USA, lowered down the spot availability of Acetic Anhydride globally. Firming Acetic Acid rates maintained the cost pressure over regional Acetic Anhydride manufacturers. Meanwhile, demand from the Asian market also played a major role for driving the prices toward upward trajectory.
For the Quarter Ending December 2020
North America
Demand came from both cigarette filters and pharma industry as both revived in Q4 from the aftereffects of lockdown. Furthermore, demand from TAED segment rose much sharply with the rise in the demand for Laundry detergent. Consequently, prices of Acetic Acid increased due to surge in prices of feedstock Methanol which suffered limited supplies in Q4. This has caused a slight increase in the prices of Acetic Anhydride prices as compared to Q3.
Asia
Acetic Anhydride demand remained resilient throughout Q4 as the end use industries including Cellulose Acetate and Aspirin continued production. Demand from the end use in (tetraacetylethylenediamine) TAED segment saw a significant rise as the demand for laundry detergent increased in the region in the wake of COVID-19 pandemic. Prices of the feedstock Acetic Acid saw a rise which raised the prices for Acetic Anhydride in Q4. Thus, price of Acetic Anhydride in India during Q4 was averaged around USD 1318 per MT.
Europe
Supply of feedstock Acetic Acid in the European market saw a slight decline in Q4 due to production cuts implemented in several plants of feedstock methanol in Q4. Shortage of upstream Methanol in the region caused an upward pressure on the prices of Acetic Anhydride. Demand from cellulose acetate, pharmaceuticals increased as both the industries rebounded from the aftereffects of the COVID-19 pandemic. Demand from TAED segment saw a slightly higher growth as compared to cellulose acetate and pharma industry as the need for cleaning products and detergents rose sharply both in Q3 and Q4.
