Indian Acetic Acid Market Heats Up: GNFC and Laxmi Organics Navigate Rising Prices Amid Port Constraints

Key Highlights

1. Acetic Acid gained ₹8/kg (26.67%) between 10 Nov–9 Dec in India.
2. Global supply tightened due to shutdowns in China, Singapore, and SE Asia.
3. Downstream buyers increased inquiries fearing further cost escalation.
4. Prices likely to remain bullish through early 2026 amid low inventories and weak INR.

Pricing Overview: Domestic and Imported Acetic Acid Prices Surge Sharply

GNFC Price Revision:

GNFC increased Acetic Acid prices by ₹2,000/MT for both tanker and carboy supplies.

Tanker Supply
1. Immediate Delivery – ₹36,000/MT
2. 30-Day Credit – ₹36,450/MT

Carboy Supply:
1. Immediate Delivery – ₹48,500/MT
2. 30-Day Credit – ₹49,100/MT

Note: Applicable prices depend on rates at the time of issuing Delivery Instructions (DI).

Imported Acetic Acid – Kandla Port (India)

Acetic Acid prices moved sharply higher through the period, despite a brief early dip. 

Overall, from 10 November to 9 December, Acetic Acid gained ₹8/kg, recording a strong 26.67% rise for the period.

China Domestic Prices

• As of 28 Nov, average price: USD 361/ton, up 1.86% from USD 354/ton.
• Prices rose due to:
  a. Lower operating rates
  b. Reduced domestic inventories
  c. Higher month-end order bookings
  d. Improved downstream inquiries

Other Products:

• Methanol: Prices rose to USD 300/ton (+6.02%).
• Acetic Anhydride: Prices slightly weakened from USD 576 → USD 570/ton (−0.31%) due to weak downstream demand despite higher raw material costs.

Tight Global Supply and Cautious Demand Drive Bullish Trend

Supply Side:

• China saw lower capacity utilisation and declining inventories.
• Long-term contracts increased, tightening spot availability.
• Indian port inventories dropped due to delayed imports and global supply disruptions.
• Rising methanol prices supported upstream cost pressures.
• Despite restarts at ZPC and Guangxi Huayi, the market remains supply-sensitive.
• Multiple shutdowns in China, Singapore, and Southeast Asia continue to limit global supply availability.

Demand Side:

• Downstream demand (ethyl acetate, pharma intermediates, acetate derivatives) improved modestly.
• Buyers increased inquiries amid fears of further price hikes.
• However, downstream sectors like acetic anhydride remain weak due to:
  • High input costs
  • Low procurement enthusiasm
  • Slower offtake from end-use industries

Overall demand is steady but cautious, while supply remains constrained — tilting the market into a bullish imbalance.

Market News: Shutdowns, Restarts and Cost Hikes Reinforce Price Momentum

Plant Shutdowns / Restarts: Mixed shutdown–restart cycle, but net global supply remains tight

1. Sinopec Great Wall (Ningxia, China): Planned shutdown – 410,000 TPA Acetic Acid capacity.
2. Zhejiang Petroleum & Chemical (ZPC), China: Restarted – 1 million TPA Acetic Acid capacity.
3. Guangxi Huayi, China: Restarted – 700,000 TPA Acetic Acid Plant.
4. Celanese, Singapore: Planned shutdown in early December – 600,000 TPA Acetic Acid capacity.

Laxmi Organic Industries – Essentials Product Price Increase (8 Dec):

Reason for hike:

1. Disrupted acetic acid production in China & SE Asia
2. International price surge and shortages at Indian ports
3. Sharp INR depreciation (₹87 → ₹90/USD)
4. Rising cost of imported raw materials & coal

Price Hike (₹/kg):

• Ethyl Acetate: +6.00
• n-Propyl Acetate: +4.00
• n-Butyl Acetate: +3.00
• Acetic Anhydride: +5.00
• Acetaldehyde: +2.00

Market Expectation: Acetic Acid Prices Seen Rising Further Into Early 2026

Short Term: Acetic Acid prices are expected to continue rising, driven by: Tight global supply, Low inventories, Continued INR weakness, Upcoming shutdowns in Singapore and China

Medium Term (December–January): Market sentiment remains strongly bullish, Downstream sectors may face margin pressure as input costs rise sharply.

Key Variables to Watch:
1. Import arrival delays at Indian ports
2. Output stability at newly restarted Chinese plants
3. Currency fluctuations
4. Methanol price trend (upward trajectory supports acetic acid cost-push)

Overall Outlook: The Acetic Acid market is expected to remain on an upward trajectory, with heightened price volatility and firm demand. Supply constraints will continue to dictate market behaviour through early 2026.