Acetic acid

Acetic acid is a global product, with Asia accounting for more than 60% of world consumption. China accounts for almost 30%, and with new capacity coming on line, it should continue to be the engine of global acetic acid growth over the next few years.

The two largest acetic acid producers, Celanese and BP, are based in the US and Europe respectively. The European market continues to be reliant on imports, mainly from the US, but also from the Middle East and, increasingly, from China.

The largest single end-use for acetic acid is vinyl acetate monomer (VAM), a paint and coating application that is 35% of the world market. Two other uses, purified terephthalic acid (PTA) and acetic anhydride, consume almost as much as VAM – about 33% – while acetate esters take 20%.

Demand growth rates are expected to remain in low single-digit percentages, depending on the region, with Asia's annual growth rates likely to hover around 5-6%. Spot prices in Europe and Asia have been fairly steady so far this year, while US prices have increased on higher methanol costs.

Updated to mid-February 2013