Updated to mid-November 2009
Asian market review by Helen Lee, ICIS pricing
Acetic acid spot prices in Asia outside China ended the quarter largely flat-to-lower at around $400/tonne CFR (cost and freight) in mid-November. A blip was experienced during August-September due to high upstream methanol costs and limited supply. A global producer enforced a 70% sales allocation for September on account of unstable production at its 600,000 tonne/year Nanjing plant in China since completing a one-month turnaround in early August.
The ease in supply shortage amid improved acetic acid production in China and impending new capacity in the Middle East coupled with sluggish demand contributed to bearish sentiment at the end of the quarter. Northeast Asia prices rose $35/tonne to the quarter’s high of around $480/tonne in mid-September before falling to around $400/tonne CFR NE Asia (northeast Asia) by mid-November due to supply build up and sluggish demand.
Southeast Asia (SE Asia) and south Asia ended the quarter 8.0% lower at around $405/tonne CFR SE Asia/S Asia, whereas China saw an overall decline of around 4.8% to $347.50/tonne CFR China Main Port (CMP) in the same period due to lengthening supply.
European market review by Jane Massingham, ICIS pricing
With many players enjoying the summer holiday season in mid-August, Q3 contract negotiations for acetic acid in Europe were rather slow.
Both rollovers and increases of between €10-20/tonne had been agreed to date, with fixed priced estimations between €420-480/tonne FD (free delivered) NWE (northwest Europe).
Spot business was reported between €410-440/tonne FD NWE.
Early September, Q3 contracts were confirmed and settled up by €10-20/tonne at €420-490/tonne FD.
There was talk of supply tightness due to the force majeure declaration from Celanese for all its acetic acid supplies in China. In Europe, BP was also due to carry out some routine maintenance on three of its units in Hull, UK. The site has a combined capacity of 510,000 tonne/year of acetic acid.
During the second half of September, spot prices firmed to €450-480/tonne FD NWE amid a more balanced market and reasonable demand.
A couple of producers announced intentions to increase prices in Q4 by €100/tonne. Buyers responded by saying that the market would be unable to absorb much more than €30-40/tonne.
Through October, buyers and sellers continued to debate the Q4 contract level and spot prices peaked at €500-530/tonne FD NWE, before moving back to €480-510/tonne FD NWE in November.
By mid-November, Q4 contracts that were confirmed were so far heard at an increase of €50-70/tonne or on a fixed priced basis of €470-550/tonne FD NWE.
US market review by Lane Kelley, ICIS pricing
Spot acetic acid FOB (free on board) export prices in the US remained unchanged during the quarter ended in mid-November, though increases were considered likely as a result of jumping rates for feedstock methanol. The monthly barge price of methanol moved up almost 40% in the period, from an average of about 72 cents/gal to roughly $1.00/gal.
The centre of the acetic acid universe continued to be in China, where Celanese has staked the future of the company, doubling capacity at its Nanjing unit and sparking concerns that the company had changed its acetyls strategy when prices in Asia fell below $400/tonne during the period.
But a top Celanese executive said there had been no change in the strategy and said the company might add capacity at units in Texas or Singapore. However, no details were given on when the expansion would take place or at which plant.
The Latest
Acetic acid
Price Reports
Acetic acid
price reports from ICIS pricing give you immediate access to the latest price movements
and critical market commentary.
Register for your FREE trial today.
Acetic acid
Uses and Outlook
The largest use for acetic acid is the manufacture of vinyl acetate monomer (VAM), which accounts for one-third of acetic acid consumption. With its end use markets in adhesives, textiles, paints and paper, the VAM market is mature with growth around GDP levels. However, there are strong growth areas for VAM such as ethylene vinyl alcohol (EVOH) barrier resins, ethylene vinyl acetate (EVA) polymers and polyvinyl butyral (PVB).
More about Acetic acid Uses and Outlook
Acetic acid
Process Technologies
Acetic acid technology is perhaps the most diverse of all major industrial organic chemicals. No other large volume chemical can claim the varied feedstocks and production approaches acetic acid can. However, methanol carbonylation has become the dominant acetic acid production technology, accounting for over 65% of global capacity.
More about Acetic acid Process Technologies
Search for
Acetic acid
Suppliers
If you are sourcing
Acetic acid
products and services, use ICIS search for fast and accurate results. ICIS search
is the search engine dedicated to the chemical industry – we show you only relevant
results -
search now.