US Meth Acrylic Acid Prices Rise in August 2023 Amidst Higher Upstream Costs
- 05-Sep-2023 6:36 PM
- Journalist: Yage Kwon
Meth Acrylic Acid (MAA) prices have seen a jump by USD 80 per metric tonne on the month end, August 2023. The prices of MAA assessed as of August 31 have been closed at a value of USD 3053 per metric tonne on a FOB basis. Significant price hikes in upstream material costs due to higher crude oil prices have supported the uptrend in MAA prices. Sulphuric acid prices have also been higher in the major exporter, China, which strengthens the MAA cost support to overseas importers.
According to government data, US crude oil prices soared on Wednesday due to tighter-than-expected crude supplies. The contract prices for October have risen 37 cents and settled at USD 85.86 a barrel. Brent crude futures for the November contract have been up 33 cents, USD 85.21 per barrel.
Benzene prices as of August 31 have been trading with a hike of 11.73 percent compared to the previous month. At the same time, FOB prices of Acetone have been increased by USD 43 per metric tonne in Texas. Another important feedstock in the production of MAA, Cumene, has been trading at USD 94, up from last month's prices.
The prices of domestic sulphuric acid have seen a significant rise due to low storage levels, though mainstream domestic manufacturers have increased their supplies in the market. Sulphuric acid, which needs to convert the acetone cyanohydrin to MAA, has been trading in the North American market at USD 3 above the prices of July month.
The unemployment rate has risen to 3.8 percent, as per news released on September 1 from the Bureau of Labor Statistics (BLS). US Crude inventories have reported a drop of 10.6 million barrels to settle at 422.9 million barrels last week. Moreover, the US dollar has been running weaker than other currencies, which might lead to further interest rate hikes.
Furthermore, Saudi Arabia, the oil giant, is expected to extend its spontaneous output cut in October, keeping a tighter oil supply, according to analysts.
Propylene, a key feedstock in the production of MAA, has been mostly produced as a co-product of ethylene. The key managing factors controlling the market and prices of MAA are planned maintenance turnarounds in the spring and autumn. However, unplanned outages can majorly impact the future market expectations of MAA. The hurricane season from June to November in the US Gulf might disrupt production and trade flows.
