Acetic acid makers eye double-digit MCA growth

29 May 2008 10:32  [Source: ICIS news]

SINGAPORE (ICIS news)--Double-digit growth in the monochloracetic acid (MCA)/pesticide sector in China is expected to prop up acetic acid demand, producers said.

 

“Growth in this derivative sector was higher than we had expected especially in the Chongqin [China] area, where there were capacity expansions this year,” a BP Yaraco company official said on Wednesday on the sidelines of the Asia Petrochemical Industry Conference (APIC).

 

Areas in the northwestern parts of China as well as Jiangsu and Subei had witnessed substantial MCA and derivatives capacity expansion, a Jiangsu-based acetic acid producer said, adding that the increase amounted to 30-50% this year.

 

This was fuelled by recent developments in the fertilizers/pesticide sector on the back of rising grain prices and food supply concerns, he added.

 

Producers anticipated healthy growth for MCA applications in the pesticide sector, which was expected to account for up to 20% of the acetic acid market segment, up from 12-13% in the previous year, they said.

 

 

Major acetic acid producers in Asia include Celanese, BP Petronas Acetyls, Jiangsu Sopo, Showa Denko KK, CPDC, Fanavaran Petrochemical Company and GNFC.

 

APIC ended on Wednesday.

By: Helen Lee
+65 6780 4359

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