For the Quarter Ending December 2024
North America
In Q4 2024, Monochloroacetic Acid (MCA) prices in the U.S. declined throughout, ending December at USD 997-1100 per metric ton FOB Texas, supported by ample supply despite subdued demand and limited purchasing power from downstream sectors, particularly fertilizers.
Methanol prices, driven by anticipated increases in Methanex’s contract pricing, added potential cost pressures, although sluggish downstream demand and elevated shipping costs curbed significant price hikes. Fertilizer demand slowed in December as seasonal fall applications concluded, with ammonia and urea prices declining, while phosphates saw modest increases due to extended application seasons. Potash prices remained steady, influenced by global supply dynamics and reduced farmer spending amid lower crop prices.
Manufacturing activity showed signs of gradual improvement despite the broader U.S. sector contraction, with chemical production facing headwinds from reduced construction activity and weaker domestic and international orders. Rising input costs and supply chain disruptions pressured profit margins across industries. Looking ahead, cautious optimism prevails for 2025, with the agricultural sector expected to shape fertilizer demand and MCA usage. While supply and pricing volatility remain concerns, steady operational rates in MCA plants and stable fertilizer market trends provide a foundation for gradual recovery, influenced by planting decisions and crop pricing.
Asia
In Q4 2024, the Monochloroacetic Acid (MCAA) market in China showed declining trends, with stable prices supported by reduced production capacity, moderate demand stabilization, and robust export activity. Early in the quarter, prices faced downward pressure due to oversupply, high inventory levels, and weak downstream demand. However, production halts in Shandong and improved downstream activity by mid-November contributed to price stabilization, with MCAA prices reaching USD 457-550 per MT FOB Qingdao by December. Rising input costs and supply chain disruptions pressured profit margins across industries. Demand from the pesticide industry remained steady, while fertilizer markets exhibited mixed trends, with urea prices stabilizing, subdued demand for phosphate fertilizers, and rising potash prices due to restricted supply. Despite advancements in manufacturing processes and sufficient domestic supply, fluctuating raw material prices, logistical challenges, and weak foreign orders tempered market sentiment. Looking ahead, the market is expected to remain stable in the near term, with cautious optimism for 2025 as downstream capacity expansions may drive demand, although concerns over sustained overcapacity and price volatility persist.
Europe
In Q4 2024, Monochloroacetic Acid (MCA) prices in Germany declined, driven by weak demand from the pesticide sector, lower feedstock acetic acid prices, and high inventory levels. While methanol prices rose due to Methanex’s contract adjustments, this cost pressure had a limited impact on MCA pricing amid subdued downstream demand. Seasonal factors, including reduced agricultural activity during winter, contributed to fewer pesticide inquiries, with demand expected to rebound in 2025 as the spring planting season approaches. MCA production remained stable, supported by domestic operations and consistent imports, even as the broader Eurozone manufacturing sector faced contractions, overcapacity, and logistical challenges. In parallel, Germany’s fertilizer market also experienced subdued demand due to high energy costs, weak grain prices, and reduced farmer spending, resulting in lower nitrogen fertilizer sales coverage compared to typical years. Looking ahead, innovations in sustainable farming practices and regulatory-driven advancements in crop protection may support gradual market recovery in the medium term. Domestic supply remained sufficient to meet demand from key sectors, including pesticides and fertilizers.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Monochloroacetic Acid market witnessed a mixed trends in prices. This mixed trend was primarily influenced by factors such as subdued demand from downstream industries, particularly in pharmaceuticals and textiles the initial rise in the prices was due to higher trading activity in the market as beginning of new quarter.
The market also faced challenges due to weakened construction spending and lower consumer confidence, leading to decreased consumption of Monochloroacetic Acid. In the USA, which experienced the most significant price changes, prices plummeted by 30% compared to the same quarter last year. The quarter-on-quarter analysis revealed a steep decline of 4%, emphasizing the negative pricing trend.
Furthermore, a notable price difference of 5% was observed between the first and second halves of the quarter, indicating a continual decrease. The latest quarter-ending price for Monochloroacetic Acid in the USA was reported at USD 1019 per MT DEL Houston, reflecting the overall negative pricing environment characterized by declining market conditions and subdued demand.
APAC
The third quarter of 2024 for Monochloroacetic Acid has been marked by an overall increase in prices across the APAC region. Several key factors have influenced these market dynamics. In general, heightened production activity across various industrial sectors utilizing Monochloroacetic Acid has driven demand, particularly in pharmaceuticals, chemical industries, and agrochemicals. Supply constraints, including operational issues at production facilities and import price hikes, have further tightened the market, pushing prices upwards. Furthermore, the consumer sentiments throughout the Quarter remained positive indicating positive market sentiments indicating higher downstream inquires. Notably, China has experienced the most significant price changes, with prices surging due to increased demand and supply challenges. Despite a -12% decrease from the same quarter last year, recent trends have shown a positive trajectory, with a 13% increase in prices from the first to the second half of the quarter 2024 indicating positive market sentiments. The quarter-ending price of Monochloroacetic Acid in China stands at USD 557/MT-FOB Qingdao, reflecting a consistent uptrend in pricing.
Europe
In Q3 2024, the Monochloroacetic Acid market in Europe experienced a decline in prices, with the Netherlands particularly affected by significant changes. The overall decreasing trend was influenced by several key factors. Reduced procurement activities towards the end of the quarter, coupled with weakened demand from pharmaceutical and other industries, played a crucial role in lowering prices. Stable feedstock costs and ample material availability further contributed to the prevailing market conditions. Furthermore, the consumer sentiments declined throughout Q3 2024 thus the demand from the downstream industries remained on the lower side. The Netherlands, experiencing the most significant price changes, saw a -15% decrease from the same quarter last year and a -5% decline from the previous quarter in 2024. The comparison between the first and second half of the quarter showed a -1% change, highlighting the continuous downward trend. Consequently, the quarter-ending price for Monochloroacetic Acid in the Netherlands settled at USD 982/MT FOB Rotterdam, reflecting the negative pricing environment characterized by decreasing prices throughout the period.
For the Quarter Ending June 2024
North America
In the first quarter, the prices of monochloroacetic acid (MCA) exhibited an upward trend due to the market being in a stocking mode, leading to constant product inquiries. Additionally, there was a shortage of supply in the market to meet downstream demand, leading to higher inventory prices as traders offered premium rates for available stocks. However, in the second half of the quarter, MCA prices predominantly showed a declining trend, resulting in a consistent decrease in prices.
The second quarter of 2024 has been marked by a consistent decline in Monochloroacetic Acid (MCA) prices across the North American region, driven by several pivotal factors. Key reasons influencing the MCA market included a downturn in demand from downstream industries such as agrochemicals, surfactants, and pharmaceuticals, coupled with substantial inventory levels held by domestic producers. Additionally, ample imports from Europe and Asia exacerbated the supply glut, further pressuring prices downward. Fluctuating raw material costs, particularly the decline in acetic acid and acetic anhydride prices, also played a significant role by lowering production costs and enabling price reductions.
In the USA, the MCA market experienced the most pronounced price changes. The overall trend for this quarter has been decidedly negative, with MCA prices reflecting a 27% decrease compared to the same quarter last year. This decline underscores the impact of subdued industrial activity, particularly within the agrochemical sector, which traditionally supports MCA demand. Seasonal factors, including a slowdown in agricultural activities, further contributed to this downward trajectory.
From the previous quarter of 2024, prices declined by 2%, signifying a persisting bearish sentiment. Additionally, a comparison between the first and second halves of the quarter reveals a further 5% decrease, indicating a progressively weakening market. Conclusively, the latest quarter-ending price for MCA settled at USD 1082/MT DEL Houston, signalling a prolonged negative pricing environment. Overall, the Q2 2024 MCA pricing landscape in the USA has been notably adverse, with significant downward pressure stemming from both demand and supply-side dynamics.
APAC
In the first half of the quarter, the prices of monochloroacetic acid (MCA) exhibited an upward trend. This increase was primarily driven by firm cost support from the feedstock acetic acid. Additionally, there was a shortage of supply in the market to meet downstream demand, leading to higher inventory prices as traders offered premium rates for available stocks. However, in the second half of the quarter, MCA prices predominantly showed a declining trend, resulting in a consistent decrease in prices. In Q2 2024, the Monochloroacetic Acid (MCA) market in the APAC region experienced a significant downturn. The overall pricing environment was decidedly negative, driven by several pivotal factors. A key influence was the subdued demand from downstream industries, particularly agrochemicals and pharmaceuticals, which saw reduced consumption of MCA. This decline in demand was compounded by a high supply situation, with production rates remaining high despite the sluggish market. Additionally, raw material costs for MCA's key feedstocks—acetic acid and chlorine—remained low, further pushing down prices. Manufacturers' efforts to offload surplus inventory at discounted rates exacerbated the falling price trend. Focusing on South Korea, which experienced the most pronounced price changes, the quarter witnessed a marked downturn in MCA prices. A combination of seasonal low demand and ample stock levels contributed to the declining trend. Furthermore, heightened competition from Chinese imports, which were priced aggressively lower, added downward pressure on local prices. As a result, MCA prices in South Korea saw a staggering 44% decrease compared to the same quarter last year and a 6% decline from the previous quarter in 2024. This trend was also reflected in a 10% price drop from the first to the second half of Q2 2024. Conclusively, the quarter ended with MCA prices at USD 488/MT CFR Busan, underscoring the continued negative sentiment in the market.
Europe
In the first half of Q2 the prices of Monochloroacetic acid have shown bullish market trends. This development was due to firm cost support from the feedstock and demand from the food and pharmaceutical sector was firm leading to adequate product inquiries from the downstream industries. In the Second half of Q2 the prices of Monochloroacetic acid have shown the bearish market trends. In second half of Q2 2024, the Monochloroacetic Acid (MCA) market in Europe faced a significant downturn, marked by continuous price declines. The average price decrease for MCA across the region was principally driven by oversupply amid declining demand from key downstream industries such as agrochemicals, pharmaceuticals, and personal care products. The persistent high inflation eroded purchasing power, further dampening end-user demand. Additionally, the abundant supply of natural gas reduced production costs, while stable feedstock prices, particularly acetic acid, kept manufacturing expenditures low. Disruptions in global trade flows, caused by peak shipping season, longer routes to avoid the Red Sea, and adverse weather conditions in Asia, also led to a capacity crunch and increased freight rates, further affecting market sentiments.
Germany experienced the most pronounced price changes. The overall trend for MCA in Germany this quarter was bearish, with a marked seasonality effect influenced by the holiday season in August. The price of MCA in Germany decreased by 15% compared to the same quarter last year and by 1% from the previous quarter of 2024, indicating a slight stabilization but continuing decline. Comparing the first and second halves of the quarter, prices fell by 4%, reflecting the persistently subdued market conditions. The latest quarter-ending price for MCA in Germany was USD 1028/MT, FOB Hamburg. This consistent downward trend highlights a negative pricing environment, driven by weakened demand, ample supply, and economic uncertainties affecting the market dynamics in Q2 2024.
For the Quarter Ending March 2024
North America
Prices of Monochloroacetic acid have witnessed a see-saw trend in the North- American market during the first quarter of 2024. During the initial of Q1 of 2024, Monochloroacetic acid prices have declined in the US market. The demand for monochloroacetic acid from the downstream surfactant, agrochemical industry has remained average in the domestic market. The consumption from the end-user sector has eased due to low seasonal demand which weighed down the prices of Monochloroacetic acid in the domestic market. However, after experiencing a bearish rally in the previous month, Monochloroacetic acid prices have strengthened in the USA market during the mid of Q1 of 2024 on the back of high upstream and tight supply.
The cost support from feedstock Acetic acid and Acetic anhydride was sufficient for Monochloroacetic acid as its price settled on the higher end in the domestic market, leading to the bullish market sentiments of Monochloroacetic acid among the manufacturers. Moreover, Crude oil prices have remained above $80 per barrel for most of February, indicating a tightening in the physical market because of ongoing OPEC+ production cuts and the prolonged rerouting of cargoes away from the Red Sea and the Suez Canal. The increased Crude Oil prices have further pushed up the manufacturing costs of Monochloroacetic acid.
However, Monochloroacetic acid prices ended Q1 on a soft note due to the low downstream demand from both the domestic and international markets and sufficient inventories in the domestic market. Feedstock Acetic acid prices have also inched lower despite the high energy prices which further weighed down the prices of Monochloroacetic acid in the domestic market.
Asia-Pacific
Monochloroacetic acid prices experienced fluctuations in the Asian market throughout the first quarter of 2024. Early in Q1, prices strengthened in the Chinese market as players replenished inventories ahead of the Lunar New Year Holiday. Moreover, slight improvements in demand from the agrochemical and surfactant sectors boosted domestic prices. However, domestic operating rates remained under pressure, resulting in limited production and relatively scarce finished stock availability, prompting manufacturers to adjust offers to maintain profit margins. By the end of Q1, Monochloroacetic acid prices declined in the domestic market as feedstock prices for Acetic acid and Acetic anhydride decreased, reducing production costs. Meanwhile, demand from downstream sectors like agrochemicals and surfactants remained moderate, with steady consumption from end-users domestically. Anticipated increased demand from downstream industries in the next quarter could drive further price hikes for Monochloroacetic acid domestically. However, inquiries from the US and European markets softened due to macroeconomic challenges. Additionally, China's consumer inflation target for 2024 was set at 3%, contrasting with the 0.2% average inflation in 2023, indicating weakening consumer sentiment and challenges in the property sector. Despite this, Monochloroacetic acid supply remained sufficient in the domestic market as players had already replenished inventories, thus weighed down the prices of Monochloroacetic acid in the domestic market.
Europe
Monochloroacetic acid prices in the European market displayed a mixed pattern during the first quarter of 2024. Initially, prices in the German market saw a continuous uptrend, primarily driven by escalating energy and feedstock costs. During the off-peak demand season, manufacturers scaled back production and adjusted inventory levels to prevent overstocking, utilizing this period for maintenance and facility upgrades. Consequently, finished goods were relatively scarce. Concurrently, rising prices of feedstock like Acetic acid and Acetic anhydride inflated the production expenses of Monochloroacetic acid domestically. Brent Crude prices staying above $80 per barrel for much of February signalled market tightening due to ongoing OPEC+ production cuts and cargo redirection away from the Red Sea and the Suez Canal, further inflating manufacturing costs of Monochloroacetic acid. In addition, Demand from downstream sectors like agrochemicals and surfactants showed signs of improvement domestically, bolstering Monochloroacetic acid prices. Unexpectedly, overseas demand also surged, with German exports surpassing expectations at the beginning of the year, driven by increased demand from the European Union and China. However, towards the end of Q1, Monochloroacetic acid prices dipped in March 2024 in the German market. Limited support from feedstock Acetic acid and Acetic anhydride prices led to the low production cost of Monochloroacetic acid. On the demand side, inquiries from the agrochemical industry slowed down ahead of the Easter holidays, while overseas purchasing activity remained average due to unfavourable economic conditions, prompting manufacturers to decrease prices. Despite low operating rates, material availability remained sufficient, further pressuring Monochloroacetic acid prices in the domestic market.
