Mono Chloro Acetic Acid (MCAA) Market Holds Steady Amid Firm Acetic Acid Feedstock Prices 

Key Takeaways

• Domestic Price Revision: MCAA base prices increased ₹0.5/kg due to higher Acetic Acid inputs, with current rates around ₹58.50–₹58++/kg.
• Trading Prices Higher: Market offers ranged up to ₹60.50/kg on extended payment terms, indicating firm sentiment among traders.
• Strong End-Use Demand: Agrochemical and pharma sectors continue to support consumption, especially for 2,4-D, Ibuprofen, and Diclofenac.
• Healthy Supply Conditions: Indian plants are running at high capacities to meet consistent demand across multiple sectors.
• Outlook Cautiously Stable: Prices may hold for now, but softening feedstock and weak global pharma activity could trigger corrections.

Chemicals Price: MCAA Prices Up Slightly Following Acetic Acid Surge

• Domestic producers raised Mono Chloro Acetic Acid (MCAA) prices by ₹0.5/kg, setting new levels at ₹58.50/kg (ex-Ankleshwar) and ₹58++ (ex-Hyderabad) on advance payment terms.
• The upward revision follows a sharp increase of nearly ₹2/kg in Acetic Acid prices last week, lending cost support to MCAA. Consequently, MCAA prices remained largely stable through the week.
• In the trading segment, offers were reported on the higher side, ranging between ₹58.50/kg and ₹60.50/kg on 60-day payment terms.
• On a week-on-week basis, MCAA prices have firmed up by approximately ₹0.5/kg. Meanwhile, Asian feedstock Acetic Acid benchmarks (FOB China) were assessed in the range of $310–$320/tonne.

Chemicals Supply and Demand: Strong Demand from Pharma and Agro

• Supply conditions continue to be healthy, with Indian producers running plants at elevated operating rates amid strong downstream demand from the agrochemical and pharmaceutical sectors.
• Robust consumption of 2,4-Dichlorophenoxyacetic Acid (2,4-D) in agrochemicals, and Ibuprofen and Diclofenac in pharma applications, is supporting MCAA offtake heading into March 2025.
• Additional demand during the previous month was also noted from the surfactants and personal care segment, led by increased production of Imidazolines.
• India’s total MCAA consumption stands at an estimated 15.41 kt per month or roughly 185 kt per annum, growing at a CAGR of 5.5%. 
• Pharma and agrochem applications including Ibuprofen, 2,4-D, and Diclofenac account for around 55% of total usage. 
• Another 30% is directed toward Chloroacetic Acid Chloride (CAC) and Trichloroacetic Acid (TCAC) production, with the remaining volumes consumed in specialty chemicals and dye sectors.
• Key MCAA Producers in India
  India hosts 11 significant manufacturers of MCAA, with the following nameplate capacities:
  1. Jubilant – 35 kt/year
  2. Anaven – 33 kt/year
  3. TerraTech Chemicals (formerly Karan Intermediates) – 24 kt/year
  4. Meridian Chem Bond Pvt. Ltd – 24 kt/year
  5. Sr Drugs and Intermediates – 15 kt/year
  6. Archit Organosys Limited – 18 kt/year
  7. Jay Dinesh Chemicals – 2.4 kt/year
  8. Renaissance Industries – 4 kt/year
  9. Anugrah In-Org (P) Ltd – 6 kt/year
  10. IOLCP – 7.20 kt/year (captive for Ibuprofen)
  11. Mruchem – 4 kt/year (contract manufacturing)
• Any notable shifts in feedstock Acetic Acid prices are expected to directly influence MCAA pricing dynamics in the coming weeks.

Chemicals News: Global Energy and Feedstock Prices Show Mixed Trends

• On the global front, upstream WTI crude prices slipped by 2.82% to $62.85/bbl, while natural gas declined by 1.46% to $3.19/MMBtu. 
• Methanol prices (CFR China) were recorded at $268/tonne, with Acetic Acid (FOB China) assessed at $310/tonne.

Expert Opinion: Steady for Now, But Watch Acetic Acid

• Looking ahead, market participants anticipate that MCAA prices will remain range bound in the near term amid steady downstream demand. However, softening Acetic Acid costs and a slowdown in pharmaceutical production—driven by US tariff impacts and bearish global sentiment - may prompt a downward correction.
• Buyers are advised to explore just-in-time procurement strategies, as any change in feedstock pricing could trigger swift adjustments in the MCAA market.