Due to tight equipment supply and raw material prices, Asian acetic acid market will rebound in the fourth quarter

According to "Asian Chemical News" reported on September 26, Asian acetic acid producers predict that after a sharp decline in the second and third quarters, the price of acetic acid will slowly rise in the fourth quarter. The fact that market supply is tight, demand increases, natural gas prices continue to rise and other factors are the main drivers of rising market prices. In addition, the rise in the price of acetic acid derivative products has also prompted the price of acetic acid to rise.
Celanese has decided to increase Asia's contract price of acetic acid by US$110/ton in the fourth quarter. BP announced that the supply contract price in Southeast Asia increased by 50 to 70 US dollars/ton in October, and the contract price in the second half of September was 650 to 700 US dollars/ton. According to a person in charge of BP, the price in September will increase by 20 to 60 US dollars per ton compared with the previous month. Japan Showa Denko also plans to increase the contract price in the third quarter of 50 US dollars / ton, the second quarter contract price of 700 US dollars / ton (cost and freight, Northeast Asia). Some Japanese producers said that Celanese's acetate price increase may be stimulated by tight supply, improved demand for refined terephthalic acid and vinyl acetate monomers, and rising natural gas prices.
After the United States was hit by Hurricane Katrina, the price of natural gas hit a price of US$12 per million British thermal units, which promoted the Asian acetic acid market to strengthen. However, excessive formaldehyde production and weak demand will restrain Asian methanol prices from rising. In addition, the supply of acetic acid in the market will also promote price increases. Because Leonard Chemical Company was located in Texas's 480,000-ton/year acetic acid plant, seven days after the shutdown, it was announced that due to force majeure, the acetic acid exported from the United States to the Asian market would be reduced, which intensified the supply tension in the Asian market. In September, the company's export of acetic acid from Asia was halved to 4,000 to 5,000 tons.
According to market analysts, due to the shutdown and overhaul of many installations in the Asian region in the fourth quarter, supply tension will be further aggravated to support the strengthening of the market. A manufacturer said that after Celanese's 500,000 t/y acetic acid plant in Singapore was overhauled in August, the raw material for carbon monoxide supply has not fully returned to normal operation. However, Celanese declined to comment.
South Korea's Samsung BP Chemical Co., Ltd. closed its 450,000-ton/year acetic acid plant in Ulsan and the downstream 150,000-ton/year vinyl acetate plant last week. Aicel Chemical also plans to The 360,000-ton/year acetic acid plant in Otake was shut down in November for a one-month overhaul, and its 42 million-ton/year plant in Himeiji continued production.
After one month's maintenance, the 100,000 tons/year acetic acid plant of Daqing Petrochemical, which was scheduled to restart this month, will be postponed due to technical problems. Acetic acid plants with other ethylene and ethanol feedstocks in China had to be shut down due to high raw material prices. Shanghai Wujing Acetic Acid Plant also faced production problems due to shortage of methanol, because Shanghai Coking Co., Ltd. reduced its load production and could not fully supply it. The 300,000-tonne/year acetic acid plant built by Formosa BP Chemicals of Taiwan, China, has delayed commercial production for one month due to recent typhoons and heavy rains. It plans to start construction in mid-October.

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