India’s Acetic Acid Market Remains Stable; Downstream Sentiment Muted During Festive Period

Key Highlights

1. Domestic Acetic Acid prices held firm at ₹32/kg, tracking higher methanol costs.
2. Chinese Acetic Acid softened to RMB 2,540/MT amid steady supply and muted demand.
3. GNFC remains India’s largest producer with 22.39 kt/month output share.
4. Demand recovery expected from VAM, pharmaceutical, and packaging sectors post-festive season.

India Acetic Acid Prices Stay Firm Amid High Methanol Costs and Subdued Downstream Demand

Domestic Acetic Acid prices remained firm through October, supported by strong methanol feedstock costs and steady supply from key Indian producers. However, downstream sentiment stayed cautious due to festive-season slowdowns and muted industrial demand.

Domestic Market Overview

Acetic Acid prices in India recorded an upward trend, mirroring higher methanol costs and restrained buying from downstream sectors. Key consumers, especially Ethyl Acetate manufacturers, revised their offers in line with Acetic Acid price hikes, reaffirming interdependence within the acetyls value chain.

Current Domestic Prices (Importers):

• Ex-Kandla: ₹32/kg
• Ex-Mumbai: ₹32/kg

Methanol Prices (Importers):

• Ex-Kandla: ₹35/kg
• Ex-Mumbai: ₹35.25/kg

International Market Movement

China’s Acetic Acid prices softened slightly in late October due to adequate supply and weak demand:

Methanol futures in China declined amid sufficient inventories and weak consumption:

Recent import tariffs on methanol have raised domestic prices, pressuring methanol-based downstream industries such as Acetic Acid, acetyls, methyl amines, and sodium methoxide.

Domestic Supply Structure

Production remains stable, dominated by a few major Indian manufacturers ensuring consistent market availability:

Demand Drivers

• VAM demand is expected to strengthen post-monsoon.
• Pharmaceutical and packaging sectors to gradually recover post-festive period.
• Downstream segments such as inks and specialty chemicals likely to see stable offtake through Q4 FY25.

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

1. PTA – 52 kt 
2. Ethyl Acetate – 35 kt 
3. Acetic Anhydride – 29 kt
4. Bulk Drugs & Specialty Chemicals – 25 ktOthers – 24 kt

Commodities Snapshot

Outlook: Stable to Slightly Firm Ahead

Analysts expect Acetic Acid prices to remain stable to slightly firm through early November. Sustained methanol costs and gradual demand recovery post-festivities will support prices. However, any changes in methanol import tariffs or global crude fluctuations could affect short-term market direction.