Acetic acid went down in the Indian market at the beginning of this week and traded between Rs 49-50/kg on Tuesday but on Saturday market recovered and quotation of the material up by the suppliers between Rs 50.5-51/kg.
“Acetic acid prices dropped on higher suppliers’ inventories. Supply is ample with slow downstream demand amid falls in feedstock methanol prices and the weak macroeconomic situation”- the source said.
Indian manufacturer of AA GNFC also reduced their prices on import parity by Rs 2.54/kg to Rs 52.25/kg as on 14/11/2018.
Current booking level assessed between $620-630/mt CFR India down $10-20/mt from previous assessments.
Demand in the Asian acetic acid market was flat in the week to Thursday as high methanol prices and flat demand in the downstream purified terephthalic acid market weighed on buying interest.
“AA supply could tighten next year as the market moves to the traditional turnaround period every two years but this year, supply is mostly balanced to short,” a market source said on the sidelines of the IMPCA conference held in Singapore over November 7-8.
Meanwhile, in the Asian vinyl acetate monomer market, downstream ethylene-vinyl acetate for the solar panel industry was weakening and that dampened buying interest for VAM after the Chinese government imposed some restrictions, a market source said. But this could not be confirmed.
Moreover, upstream ethylene prices were softening and VAM buyers expected further cuts in VAM prices in the coming weeks. The CFR Northeast Asia ethylene price was stable week on week at $920/mt Thursday, though prices have fallen sharply in the past few weeks.