The price of glacial Acetic Acid in the US currently hovers at the lower end amidst the continued dullness in feedstock Methanol market. Further, with adequate stocks in the market, prices of Acetic Acid are likely to remain subpar in the current month. With off-season construction trends, the Acetic Acid market is likely to face lower downstream acetyl group inquiries. With potential freight rate adjustments and evolving trade policies in March, market trends suggest continued pricing pressure for Acetic Acid in the near term. Moreover, Europe is the major importer of Acetic Acid from the USA continues to face large downstream challenges leading to lower import demands.

According to the quarterly all-transactions House Price Index (HPI) released by the Federal Housing Finance Agency (FHFA), U.S. house prices rose in the fourth quarter of 2024, compared to the fourth quarter of 2023.

In February last week, prices of Acetic Acid declined. This trend was due to lower prices of feedstock methanol as stated by Methanex in its monthly contract report. Furthermore, for the energy front the natural gas prices remained on the lower end leading to lower production costs. As stocks in the market remained adequate to meet downstream demand.

Demand from the Paints & coating industries remained on the lower side as VAM and PTA inquiries remained lower. Furthermore, in Q4 2024, major player Celanese Corporation posted $1.1 billion in net sales, indicating a 7% quarter-over-quarter drop in the Acetyl Chain sector due to a sluggish demand landscape in the Western Hemisphere, exacerbated by seasonal slowdowns.

Acetic Acid manufacturers operated at stable rates, while falling freight rates temporarily eased export costs, though logistics disruptions from port congestion, severe weather, and U.S.-China trade uncertainties impacted supply flows.

While China is one of the top exporters of Acetic Acid. Its prices fell in February, this was due to improved production capacity of Acetic Acid after the holiday, and lower downstream domestic production. In the Middle of the month, some factory equipment maintenance plans were released, and the mentality of operators was high. Thus, the supply in the market remained adequate to meet the demand from the domestic market and overseas markets leading adequate international supply of Acetic Acid, thus subduing US exports.

With summer approaching in the US market the prices of Feedstock Methanol and demand from the downstream acetyl group are likely to pick up leading to higher product inquiries.  As the construction sector also picks up with falling interest rates and the government looking inward policy in focus, domestic production in the long term is expected to rise, the paints & coating demand is likely to build up with seasonal trends leading to higher product demand from April eventually leading rise in the product prices.