Acetic Acid Prices Hold Firm Amid Anticipated Post-September Surge
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Acetic Acid Prices
Importers raised acetic acid prices by ₹0.5/kg to ₹37++ per kg ex-Mumbai and ₹36++ per kg ex-Kandla on advance payment terms. Trader offers were quoted higher, at ₹38.00++ per kg ex-Mumbai and ₹36.50++ per kg ex-Kandla, on 60-day credit terms.
Bulk deal interests were noted at ₹36.50++ per kg ex-Mumbai on 60-day credit terms. However, importers were reluctant to liquidate at these levels, anticipating a price surge after September 2024.
The upward movement in Acetic Acid prices can be attributed to increased trading activity and expected firm demand from the bulk drug and amine manufacturing sectors post-September.
Acetic Acid Supply & Demand
Acetic acid supply remains moderate with regular vessel arrivals. Demand for acetic acid from the ethyl acetate sector has been weak this week, largely due to a slowdown in the bulk drug and packaging industries. On the other hand, demand from the pigments and dyes segment has been robust.
Demand for Mono Chloro Acetic Acid (MCA) has been sluggish this week, impacted by reduced production rates in the bulk drug manufacturing sector. Flooding, heavy rainfall, and the Ganesh Chaturthi holidays further contributed to lower demand during the first half of September.
The recent surge in downstream VAM prices in China has sparked a positive sentiment for acetic acid trade across Asian markets, as per market participants.
India’s monthly demand for acetic acid stands at around 125-130 kt, with downstream manufacturers of ethyl acetate, acetic anhydride, and MCA consuming nearly 65% of this volume.
Acetic Acid Market News
In the international market, upstream crude oil benchmark WTI prices fell by 0.32% to $70.93 per barrel, while natural gas prices rose by 0.36%, reaching $2.35/MMBtu.
INEOS and LOTTE are set to build a new Vinyl Acetate Monomer (VAM) plant with a capacity of 250,000 tonnes in Ulsan, South Korea. The plant is expected to commence operations by the end of 2025.
Expert Opinion
As per expert opinion, acetic acid prices may remain mixed this week due to consistent vessel arrivals and weak demand from ethyl acetate and bulk drug industries. However, market participants maintain a strong belief that prices will rise post-September.
Daily Market Report
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