Acetic Acid Went Down Due To Poor Feedstock Prices

By Author: Mirza Zahid Baig
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Asia acetic acid at multi-year lows as supply outstrips demand; Acetic acid spot prices in Asia fell to multi-year lows due to pressure from ample supply in the key China market and limited sales to India, which currently has a high inventory of the material at its ports, industry sources said on Monday.
Price path in the regional marketplace will hinge about absorption of existing shares in China, whose overall economy is slowing down, and about how the crude futures market will behave, they said.
November On 13, China’s export charges for acetic acid fell by $10/tonne to historical lows of $275-285/tonne FOB (free up to speed) China, while on a cost-and-freight (CFR) south Asia basis, prices also slipped to record lows of $335-350/tonne, down $5-10/tonne from the prior week, according to CSG data, provide acetic acid news daily basis.
Price discussions the other day were generally lower for December-delivery cargoes, but purchasers remained hesitant to commit in concern with further price corrections, marketplace sources said.
In and southeast Asia northeast, acetic acid prices fell $5-10/tonne week ...
... after week to $340-355/tonne CFR and at $340-350/tonne CFR, respectively,data showed in acetic acid news.
Prices in northeast Asia were in their lowest since March 2009, even though those in southeast Asia were the cheapest seen since April 2002.
“Since there is absolutely no demand at all and domestic cost [is] still in a down pattern, traders quite definitely want to export thus they need to offer lower prices,” a China marketplace observer said.
A couple of main acetic acid producers in China possess cut output and turn off plants through the week ended 13 November.
A global maker on 9 November shut its 1.2m tonne/12 months acetic acid plant in Nanjing, according to sources near to the company. Plant operations were likely to resume this week however the run rates will be kept at a rate simply enough to meet up demand from downstream procedures, they said.
Meanwhile, Jiangsu Sopo Chemical substance slice its daily acetic acid result to 2,700-2,since November 800 tonnes, down from the prior 3,000-3,100 tonnes, a source near to the company said. This could not really be confirmed with the business.
The plant at Zhenjiang, Jiangsu province includes a total capacity of just one 1.2m tonnes/year. It really is likely to run at reduced prices into February 2016, market sources said.
“With both Nanjing-based acetic acid plants shut, the inventories are declining. But we need to see overall the way the inventories are becoming absorbed in December,” a Chinese investor said.
Domestic acetic acid plants in China were operating at the average rate of 68% through the week ended 13 November, down from 78% in the last week, industry sources stated.
In the downstream sectors, purified terephthalic acid (PTA) plant life in China were working at the average rate of 60-65%; while vinyl acetate monomer (VAM) vegetation’ run rates common remained at 53%; and ethyl acetate vegetation were operating at 50-80% of capacity due to margin erosion.
“We are in [an] oversupply world and it depends upon the operation/sales plan of main [acetic acid] exporters,” a northeast Asia-based PTA producer said.
In South Korea, PTA plant life were running at the average rate of 70%, that ought to increase slightly to 75% in December, industry resources said.
Hanwha General Chemical’s three PTA creation lines in Ulsan have remained shut since mid-October due to a labour strike. The producer was looking to restart two of the lines by end-November.
In the downstream solvents acetate plant life in northeast Asia, depending on the national country, operating rates range between 50-60% to full creation since June. One acetic acid purchaser intends to maintain its contractual off-requires to the very least for the rest of the year.
US acetic acid demand up in oilfield sector slightly; US acetic acid demand is beginning to pick up somewhat in the oilfield sector, according to a resource on Monday.
THE UNITED STATES rig count rose to 463 for the week ending 29 July, up 1 from the prior week. This is actually the 5th week in a row which has seen a rise in energetic US drilling rigs. Nevertheless, the rig count is usually down 411 12 months on year, according to numbers from oilfield device and technology organization Baker Hughes.
Overall, acetic acid demand continues to stay poor from the coal and oil sector. In the mean time, demand in downstream vinyl acetate monomer (VAM) and purified terephthalic acid (PTA) remains steady. Get news more about acetic acid production.
However, supply continues to stay somewhat long on the market, according to advertise sources.
US place export prices have already been assessed at $600-625/tonne on an FOB (free up to speed) basis.
Acetic acid is utilized in coal and oil well stimulations to improve productivity.
Main acetic acid producers include Celanese, Eastman LyondellBasell and Chemical.