For the Quarter Ending September 2024
North America
In Q3 2024, the Acetic Acid pricing landscape in North America witnessed a notable uptrend in the first half of Q3 while prices remained subdued in the second half, driven by several key factors.
Market dynamics were influenced by a combination of increased demand from various industries, particularly in the construction and manufacturing sectors, alongside supply constraints and rising production costs. This resulted in a 9.3% price surge compared to the same quarter last year. Within the USA, which experienced the most significant price fluctuations, the quarter saw a 0.8% increase from the previous quarter and a 1% price rise between the first and second halves. This trend indicates a consistent upward trajectory in Acetic Acid prices, reflecting a positive pricing environment.
The latest quarter-ending price for Acetic Acid (Glacial) FOB Louisiana in the USA stood at USD 722/MT, highlighting the sustained bullish sentiment in the market. The quarter's performance underscores a robust demand-supply balance, cost dynamics, and sector-specific requirements contributing to the overall price escalation.
APAC
In the third quarter of 2024, Acetic Acid prices in the APAC region have exhibited a mixed trend, with Japan experiencing the most significant price fluctuations. This market shift has been influenced by several factors, including a surge in demand from various industries, particularly the acetate sector, which is extensively used in construction and manufacturing, alongside declining prices of feedstock methanol. Additionally, limited supply due to production constraints has contributed to rising prices. The depreciation of the local currency has further impacted import costs, pushing prices higher. In Japan, Acetic Acid prices have seen a substantial decline, with a percentage change of -40.7% compared to the same quarter last year and a -3% change from the previous quarter in 2024. However, the latter half of the quarter experienced a 0.2% price increase compared to the first half, indicating improved market sentiment. The quarter-ending price for Acetic Acid (Glacial) CFR Osaka in Japan stands at USD 397/MT, reflecting an upward trajectory in prices during the second half of the quarter after a significant decline in the first half.
Europe
The Acetic Acid market in Europe during Q3 2024 exhibited mixed trends, with prices rising in the first half and declining in the second half. This fluctuation was largely attributed to the halt in production at Celanese plants, a major Acetic Acid producer, in June. This disruption resulted in lower inventories and consequently higher Acetic Acid prices in the first half of Q3 2024. However, as production resumed, inventories increased, leading to a drop in prices during the second half of Q3 2024. Several key factors influenced this trend, including lower upstream methanol prices, reduced import costs from China, and weak demand from downstream sectors such as plastics and polyester industries. Additionally, an oversupply of PTA due to resumed plant operations and a decline in crude oil prices further dampened market sentiment. The Netherlands, in particular, experienced significant price changes during this quarter, with Acetic Acid prices in the region Increased by 10% compared to the same quarter last year and a 1% decrease from the previous quarter in 2024. The price comparison between the first and second halves of the quarter revealed a decline of 1%. The quarter-ending price for Acetic Acid (Glacial) FD Rotterdam in the Netherlands stood at USD 843 per MT, reflecting the overall downward pricing environment in the region.
MEA
The Acetic Acid pricing landscape in the MEA region during Q3 2024 has witnessed a notable uptrend, driven by several key factors. Strong demand from various industries, particularly the construction sector, has been a significant influencer, with increased inquiries and robust market activity propelling prices upwards. Additionally, stable feedstock costs and an overall positive economic outlook have further supported the price surge. In Saudi Arabia specifically, the market has experienced the most pronounced price changes, with a consistent upward trajectory throughout the quarter. This can be attributed to the Kingdom's thriving construction industry, which has shown resilience and sustained growth, contributing to heightened demand for Acetic Acid. While there has been decrease of 3.1% from the same quarter last year and a marginal positive change of 1.6% from the previous quarter in 2024, the comparison between the first and second half of Q3 reveals a notable 5% increase in prices. As Q3 draws to a close, the latest quarter-ending price stands at USD 364/MT of Acetic Acid FOB Al Jubail in Saudi Arabia, reflecting a firmly increasing pricing environment in line with regional trends.
For the Quarter Ending June 2024
North America
In Q2 2024, the North American Acetic Acid market experienced a notable uptick in prices, driven by several key factors contributing to an overall bullish sentiment. The primary catalyst for this surge was the escalating cost of feedstock Methanol, compounded by heightened production expenses due to increased natural gas prices. Market dynamics were further influenced by robust demand from downstream sectors, particularly the construction industry, which consistently bolstered the need for Acetic Acid derivatives such as Ethyl Acetate and Butyl Acetate. Although the inventory levels remained relatively low, a strategic restocking approach mitigated any potential supply disruptions, maintaining a balanced market flow.
Focusing on the USA, which observed the most significant price variations, the quarter's performance was marked by an 5% rise in prices from the previous quarter in 2024, reflecting a clear upward trajectory. However, compared to the same quarter last year, there was a slight decline of 3%, indicating a longer-term market correction. Seasonality played a critical role, with the first half of the quarter recording a 3% lower price than the latter half, driven by increased industrial activity and restocking efforts.
Conclusively, the pricing environment for Acetic Acid in the USA has been positive, culminating in a quarter-ending price of USD 716/MT FOB Texas. This stability, alongside a strategic response to changing market dynamics, underscores a resilient market adapting to evolving economic conditions. Despite some historical fluctuations, the quarter has signified robust growth and resilience, ensuring a stable supply to meet domestic and international demands.
APAC
In Q2 2024, the Acetic Acid market in the APAC region has experienced a notable decline in prices, driven primarily by a combination of factors. Predominantly, weak cost support from the feedstock Methanol has been a significant contributor. Upstream methanol prices remained volatile, causing downstream production costs to fluctuate unfavourably. Additionally, high inventory levels pressured traders to offer discounts, further compounded by subdued demand from key downstream sectors like construction and acetate industries. External market dynamics, including China's economic activities and coal price trends, have played pivotal roles, as rising coal prices increased production costs, leading to cautious procurement by buyers. Focusing on Japan, where the maximum price changes were observed, the market exhibited a distinct downward trend. The overall sentiment in Japan was negative, with Acetic Acid prices decreasing by 11% compared to the same quarter last year and by 4% from the previous quarter in 2024. Seasonality also played a part, as the second half of the quarter saw a slight decline of 1% from the first half, reflecting consistent downward pressure on prices. This decline was further influenced by low demand from the construction sector, despite a slight uptick in manufacturing activities. The quarter-ending price for Acetic Acid (Glacial) CFR Osaka stood at USD 411/MT, marking a period of overall negative pricing environment driven by a combination of high inventories, fluctuating feedstock costs, and subdued demand."
Europe
In Q2 2024, the Acetic Acid market in Europe displayed a persistent upward price trajectory. The primary drivers behind this bullish sentiment included stable methanol prices, consistent downstream demand from the construction sector, and the European Central Bank's maintenance of a 4.5% interest rate since 2024. Additionally, geopolitical tensions and the ongoing Red Sea crisis induced supply chain disruptions, contributing to elevated shipping costs and logistical complexities. These factors collectively fostered an environment where traders could command higher prices, despite a backdrop of declining upstream crude oil and methanol costs.
Focusing on Germany, the Acetic Acid market experienced the most pronounced price changes within the region. The overall trend was marked by increasing prices, buoyed by sustained construction demand and foreign direct investment, despite labour shortages and strike actions within the sector. Seasonality also played a role, with heightened restocking activities in anticipation of the holiday season. The correlation of these factors resulted in a 4% increase from the previous quarter and a 4% price rise between the first and second half of Q2 2024.
However, compared to the same quarter last year, prices dipped by 9%, reflecting a volatile market environment influenced by fluctuating demand and supply chain challenges. Despite these challenges, the quarter-ending price stood at USD 785/MT for Acetic Acid (Glacial) CPT Hamburg, underscoring a stable pricing environment with a positive outlook. This upward trend suggests a cautiously optimistic market sentiment, driven by robust domestic production and strategic restocking activities amidst global economic uncertainties.
MEA
In Q2 2024, the Acetic Acid market in the MEA region faced significant fluctuations, influenced by various complex factors. Despite initial stability, the market saw rising prices due to increased production costs fuelled by a surge in upstream crude oil prices. Concurrently, feedstock methanol prices experienced a marked rise, further escalating manufacturing expenses. Strong demand from downstream industries, particularly the robust construction and acetate sectors, exerted upward pressure on prices, even as the global economic recovery remained tepid. However, the market was also characterized by substantial inventory levels, leading to periodic price stabilization efforts by traders.
In Saudi Arabia, where price dynamics were most pronounced, Acetic Acid prices demonstrated notable volatility. The overall trend was marked by periodic increases driven by heightened demand from the booming construction sector. However, the market also experienced downward pressures due to high inventory levels and stable methanol prices. Seasonality played a significant role, with increased demand in the latter half of the quarter due to restocking activities and heightened construction projects. Despite these fluctuations, prices in Q2 2024 reflected a sentiment of moderate stability, with a negative change from the same quarter last year, and a negative decrease from the previous quarter in 2024. The price comparison between the first and second half of the quarter showed a 2% increase, indicating a gradual upward trend. Concluding the quarter, Acetic Acid prices stood at USD 358/MT FOB Al Jubail, underscoring a generally stable pricing environment amid fluctuating market conditions.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American region experienced a steady market for Acetic Acid, influenced by consistent demand from downstream industries, stable supply dynamics, and ongoing destocking activities. Although no major plant shutdowns were reported, the USA market witnessed a 2% increase in Acetic Acid prices in the latter half of the quarter compared to the first half.
Strong demand from the downstream construction industry, bolstered by government initiatives aimed at enhancing the construction workforce through apprenticeship and community college programs, is expected to fuel further growth in the market. This positive sentiment is projected to lead to short-term expansion. In the USA market, Acetic Acid prices remained stable throughout the quarter, with a quarter-ending price of USD 625 per metric ton of Acetic Acid (Glacial) DEL Texas.
Price percentage remained unchanged compared to the same quarter of the previous year but increased by 11% from the previous quarter in 2023 (Q3). Despite disruptions such as weather-related plant shutdowns affecting companies like DowDuPont, Eastman Chemical, and Celanese Corporation, production resumed within a week for each, indicating industry resilience. Overall, the first quarter of 2024 showcased a stable and promising market for Acetic Acid in North America.
APAC
The APAC region has experienced a decrease in Acetic Acid prices during Q1 2024. This downward trend can be attributed to various factors, including weak demand from downstream industries such as construction, reduced feedstock prices, and oversupply in the market. Despite the overall decline in prices, South Korea has seen the maximum price changes compared to other countries in the region. In South Korea, Acetic Acid prices have shown a significant decrease during Q1 2024. This decline is in line with the overall trend in the APAC region. The market has been influenced by weak demand from the construction sector, which is a major consumer of Acetic Acid. Additionally, the availability of lower-priced feedstock and ample inventories in the market have contributed to the downward pressure on prices. Analysing the price changes in South Korea during this quarter, there has been a significant decline compared to the same quarter last year, with prices falling by 28%. The decline from the previous quarter in 2024 has been even more pronounced, with prices dropping by 45%. When comparing the first half and second half of the quarter, there has been an 8% decrease in prices. As Q1 2024 comes to an end, the latest price of Acetic Acid in South Korea is reported at USD 430 per metric ton FOB Busan. Overall, the pricing environment for Acetic Acid in South Korea and the APAC region has been negative, reflecting the downward trend in prices due to weak demand and oversupply in the market.
Europe
In Q1 2024, the European Acetic Acid market experienced declining trends influenced by a combination of factors. The primary factor driving these fluctuations was the performance of Methanol, its principal feedstock, which saw subdued pricing due to stable or reduced contract prices reported by Methanex. This lack of robust cost support from Methanol was compounded by high inventory levels across the market, putting downward pressure on prices. Additionally, import prices from China, a major exporter to the region, remained steady, failing to uplift Acetic Acid pricing. The European Central Bank's decision to maintain a relatively high interest rate at 4.5% further impacted the market by reducing the purchasing power of downstream consumers, thereby dampening demand. The Purchasing Managers' Index (PMI) indicated a contraction in the manufacturing sector, typically associated with lower chemical demand, including Acetic Acid. On the supply side, no significant disruptions were reported, ensuring sufficient inventory levels to meet industry demand. Despite expectations of price stabilization or potential increases linked to anticipated rises in raw material costs and energy prices, overall market sentiment remained cautious, influenced by broader economic signals and sector-specific dynamics such as ongoing challenges in the construction industry, a major consumer of downstream products like Ethyl Acetate and Butyl Acetate. While these products experienced steady demand, it was not sufficient to significantly shift Acetic Acid prices in a positive direction within the quarter.
MEA
The first quarter of 2024 witnessed a notable decline in Acetic Acid prices across the Middle East and Africa (MEA) region, creating a negative pricing environment. This trend, particularly pronounced in Saudi Arabia, can be attributed to several factors, including reduced demand from downstream industries and abundant market supply. Additionally, the continued low cost of Methanol, a key feedstock, has led to decreased production costs and subsequently lower prices for Acetic Acid. Compared to the same period last year, Acetic Acid prices have experienced a substantial 39% decline, with a notable 10% decrease from the previous quarter in 2024. Moreover, there has been a significant price disparity between the first and second halves of the quarter, with prices dropping by 11%. As the quarter draws to a close, the latest recorded price for Acetic Acid in Saudi Arabia stands at USD 355 per metric ton FOB Al Jubail, underscoring the prevailing downward price trend in the region. In summary, the pricing environment for Acetic Acid in the MEA region throughout the first quarter of 2024 has been characterized by consistent decreases, driven by factors such as weak demand, ample supply, and favourable feedstock costs.
For the Quarter Ending December 2023
North America
The North American region observed a stable supply of Acetic Acid during the current quarter of 2023 (Q4) with the plants operating at a consistent pace. However, the demand from the downstream industries was lacklustre, especially from the construction industry, resulting in a decline in prices.
The high level of inventories in the market further added to the pressure of lower prices. The reduced demand from original equipment manufacturers (OEMs) producing coatings for furniture, doors, windows, and cabinets in the residential construction sector also contributed to the decline in demand. The prices of feedstock Methanol remained on the lower end, but the production of natural gas remained stable, providing lower cost support.
In the USA, the prices of Acetic Acid experienced a downward trend, mainly due to the reduced demand from the downstream construction industry. The demand from the international market is expected to remain firm, and the inventories level in the market is likely to remain high. The current quarter's price of Acetic Acid DEL Texas in the USA is USD 600/MT.
APAC
The Q4 2023 for Acetic Acid in the APAC region has been affected by several factors. Firstly, the high level of inventories in the market has led to lower prices. Secondly, the rise in production costs due to an increase in prices of natural gas and coal has also impacted the market. Thirdly, demand from the downstream industry has been weak, leading to a decline in prices. South Korea has seen the most significant changes in prices with a -38% decrease from the previous quarter, a -33% decrease in price between the first and second half of the quarter, and a -19% decrease from the same quarter last year. The primary reason for the decline in prices is the shutdown of LG Chem's Acetic Acid plant in Daesan, which has led to a supply shortage in the market. The quarter ending price for Acetic Acid (Glacial) FOB Busan in South Korea is USD 496/MT.
Europe
The European market for Acetic Acid in Q4 2023 saw stability due to consistent imports, with prices remaining unchanged as compared to the previous quarter. The market was influenced by heavy destocking activities, high inventories, and rising production costs due to increasing natural gas prices. Feedstock Acetic Acid prices also increased, which eventually transmitted downstream through the supply chain. The Belgium market saw stability in Acetic Acid prices due to consistent contract prices of Feedstock Methanol. However, the quarter saw a decline in prices as compared to the same quarter of the previous year. The quarter-to-quarter comparison showed a 12% increase in prices, while the price comparison between the first and second halves of the quarter showed a 13% increase. The primary reason for the market stability in Belgium was the high level of inventories, which led to lower prices. The quarter saw no plant shutdowns. The current quarter ending price of Acetic Acid (Glacial) FD Antwerp in Belgium is USD 774/MT.
MEA
The Q4 2023 for Acetic Acid in the Middle East and Africa region was characterized by stable prices. The market situation was steady, and moderate supply and demand levels were observed. The top reasons that impacted the market were the expected continuity of robust demand from the international market, reduced market inventories attributed to the onset of the festival season, and the anticipated increase in coal prices that would lead to higher production costs. In Saudi Arabia, Acetic Acid pricing showed a 7% increase from the previous quarter, with a stable market situation and moderate supply and demand levels. The percentage change in the price from the last year's same quarter was -19%. The price percentage comparison of the first and second half of the quarter was 7%. The high inventory levels influenced reduced pricing, and the expected rise in methanol, a key feedstock, is likely to influence Acetic Acid prices soon. The latest/quarter ending price of Acetic Acid FOB Al Jubail in Saudi Arabia is USD 394/MT. Overall, the stable market situation, moderate supply and demand, and anticipated market factors impacted Acetic Acid pricing in the MEA region.
