Mono Chloro Acetic Acid (MCAA) Market Trends: Price Spike Amid Rising Feedstock Acetic Acid Rates

Key Highlights

1. Price Surge: MCAA prices rose by ₹3/kg, reaching ₹58.50/kg due to a ₹3.5/kg spike in Acetic Acid prices last week.
2. Demand Drivers: Agrochemical and pharmaceutical sectors drive demand, especially for 2,4-D and Ibuprofen production.
3. Indian Capacity: India’s 12 major MCAA manufacturers produce over 185 kt/annum to meet growing demand.
4. Bullish Outlook: Feedstock cost increases and strong downstream demand are expected to keep MCAA prices on the rise.

MCAA Price Update: Surge in Response to Rising Feedstock Costs 

• Domestic manufacturers have increased the prices of Mono Chloro Acetic Acid (MCAA) by ₹3/kg, setting it at ₹58.50/kg (ex-Ankleshwar) on advance payment terms with immediate effect. This adjustment follows a sharp rise in feedstock Acetic Acid prices, which surged by nearly ₹3.5/kg last week.
• Trader offers have been even higher, ranging between ₹61.00/kg and ₹61.50/kg, also on 30-day payment terms.
• Week-on-week, MCAA prices have witnessed an increase of nearly ₹5/kg. Concurrently, the Asian benchmark for feedstock Acetic Acid (FOB China) surged by $20/tonne last week, reaching $343/MT.

Supply & Demand: Agrochemical and Pharma Sectors Fuel MCAA Growth

• Supply remains robust as domestic manufacturers operate at high production rates, driven by increased demand from the agrochemical and pharmaceutical sectors. In particular, the production of 2,4-Dichlorophenoxyacetic Acid (2,4-D) in agrochemicals and Ibuprofen and Diclofenac in pharmaceuticals has fueled this demand surge.
• Last week, demand from the surfactant and personal care sectors also picked up significantly, with rising production of Imidazolines.
• India’s total MCAA demand is estimated at 15.41 kt/month, translating to approximately 185 kt/annum, with a CAGR of 5.5%. Key downstream applications such as Ibuprofen, 2,4-D, and Diclofenac account for nearly 55% of total MCAA consumption. 
• Another 30% is consumed in CAC and TCAC production, while the remaining volume is used in specialty chemicals and dyes.
• MCAA Manufacturers in India
  India is home to 12 key MCAA manufacturers, with capacities as follows:
  Jay Dinesh Chemicals: 2.4 kt/annum
  Jubilant: 35 kt/annum
  Sr Drugs and Intermediates: 15 kt/annum
  TerraTech Chemicals (I) Pvt Ltd (formerly Karan Intermediates Pvt. Ltd): 24 kt/annum
  Anaven: 33 kt/annum
  Renaissance Industries: 4 kt/annum
  Archit Organosys Limited: 18 kt/annum
  IOLCP: 7.20 kt/annum (captive consumption for Ibuprofen)
  Meridian Chem Bond Pvt. Ltd: 24 kt/annum
  Meghmani Organics Limited: 12 kt/annum
  Anugrah In-Org (P) Ltd: 6 kt/annum
  Mruchem: 4 kt/annum (contract manufacturing)
• Higher feedstock Acetic Acid prices are expected to keep MCAA prices on an upward trend through December and January, according to a leading CAC manufacturer.

Chemical News: Global Market Trends and Innovations

• In the international market, upstream crude oil benchmark WTI prices rose by 0.52% to $69.78/barrel, while natural gas prices surged by 3.92% to $3.89/MMBtu. CFR China Methanol prices were recorded at $298/MT, and FOB China Acetic Acid prices stood at $344/MT.
• Mitsubishi Chemical plans to build an anode materials facility at Sakaide, Japan, with operations slated to begin in October 2026.
• China's PTA exports surged in November, driven by increased purchases from India.
• Jiangsu Ruiheng is running its HPPO unit at 25% capacity post-restart, citing poor margins; the plant's capacity is 400,000 metric tons per year.
• Thai recycled PET (R-PET) prices may remain unaffected by the upcoming plastic waste import ban, which follows prior restrictions implemented through import permits since 2023.
• Indian agrochemical company Coromandel International has partnered with Mahindra for drone spraying services through its subsidiary, Dhaksha Unmanned Systems.
• Sinopec has completed a seawater hydrogen production research project using a factory-based operation model powered partly by Qingdao Refinery's floating photovoltaic power station.
• Supriya Lifescience has expanded its API capacity with the opening of a new plant at Lote Parshuram, India.

Expert Opinion: Bullish Outlook on MCAA Pricing

Market predictions suggest that MCAA prices are likely to remain bullish this week, driven by rising feedstock costs and increasing downstream demand. Buyers are advised to explore contract opportunities, as market analysts anticipate a significant surge in MCAA prices.