Acetic Acid Prices Extend Decline Amid Weak Feedstock and Subdued Demand

Key Highlights

• Domestic Acetic Acid prices fell to ₹28.25/kg in Kandla and Mumbai.
• Methanol feedstock weakness and inventory build-up pressured local prices.
• Chinese restocking pushed international Acetic Acid up 0.76% to RMB 2,640/MT.
• Near-term stability expected, driven by VAM and pharma demand recovery.

Domestic Prices Decline Amid Weak Feedstock and Demand

• Domestic Acetic Acid markets recorded continuous declines over the past month, mirroring weakness in methanol feedstock and cautious downstream sentiment. 
• Key downstream players, including Ethyl Acetate producers, lowered their offers in tandem with the fall in Acetic Acid costs, reinforcing the strong correlation across the acetyls value chain.

Current Domestic Prices (Importers):

1. Ex-Kandla: ₹28.25/kg
2. Ex-Mumbai: ₹28.25/kg
3. CFR China Methanol Futures

Methanol futures in China remained largely rangebound through late September into early October.

Period Price ($/MT)

a. 7th Oct 2025 - 276
b. 26th Sep 2025 - 276
c. 23rd Sep 2025 - 279
d. 19th Sep 2025 - 284

• Recent high import arrivals led to continued stock build-up at ports, prompting downstream buyers to negotiate lower prices. This situation has put methanol-dependent sectors—such as Acetic Acid, acetyls, methyl amines, and sodium methoxide—under pressure, as demand recovery remains gradual.

Methanol Futures Flat; Inventory Build-Up at Ports

International Acetic Acid prices strengthened on improved restocking ahead of holidays in China.

Period Price (RMB/MT)

a. 7th Oct 2025 - 2,640
b. 26th Sep 2025 - 2,620
c. 23rd Sep 2025 - 2,610
d.19th Sep 2025 - 2,599

By 28 September, prices stood at 2,640 RMB/ton, up 0.76% week-on-week. Steady pre-holiday restocking, active shipments, and lower inventories created a bullish trading atmosphere in international markets.

Chinese Restocking Lifts International Acetic Acid Sentiment

Domestic Acetic Acid supply through September was stable, although producers faced higher feedstock costs. Market participants noted that any significant demand pickup from VAM and pharmaceuticals could tighten availability further in October.

Demand Drivers

• VAM Consumption: Post-monsoon season typically sees stronger VAM demand, a key Acetic Acid derivative.
• Pharmaceutical Sector: Bulk drug producers are gradually ramping up operations, offering additional support.
• Downstream Applications: Packaging, inks, and specialty chemical sectors are expected to stabilise consumption in Q4.

India’s Monthly Acetic Acid Demand Breakdown (165 kt total):

PTA Manufacturing: 52 kt
Ethyl Acetate: 35 kt
Acetic Anhydride: 29 kt
Bulk Drugs & Specialty Chemicals: 25 kt
Acetonitrile: 5 kt
Diketene & Derivatives: 3 kt
N-Propyl & N-Butyl Acetate: 2 kt
Others (Reagents, Food, Beverage, etc.): 2 kt

Commodities Market Snapshot

1. WTI Crude Oil: –0.40% → $61.40/bbl
2. Natural Gas: +2.82% → $3.42/MMBtu
3. CFR China Methanol: $276/MT
4. FOB China Acetic Acid: RMB 2,640/MT
5. OPEC+ announced crude production will be raised by 137,000 barrels per day (bpd) in November, impacting global oil supply balances.

Market Outlook: Post-Monsoon Demand and Pharma Uptick May Stabilise Market

Market participants expect Acetic Acid prices to remain broadly stable, with minor volatility ahead. Feedstock methanol costs, restocking momentum in the VAM and pharmaceutical sectors, and potential supply-side variations from geopolitical constraints are likely to drive price direction. While the near-term outlook remains steady, buyers are advised to monitor methanol imports and global crude oil volatility closely.