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Asian acetic acid spot prices may rise in 2013
Jan '13
Market experts predict that spot prices of Acetic acid in Asia may remain high in the initial period of the current year as plant operating rates are likely to be cut by major producers. The downstream market is oversupplied as per the industry sources.
Producers in N.E. Asia stated that they hope to raise Acetic acid prices in the current year even though the downstream demand is weak as upstream product prices are expected to remain high.
However, according to some traders in China, Acetic acid prices may stop declining and become stable in the domestic market in the early days of 2013 as some manufacturers may lower operating rates.
In 2012, spot prices of Acetic acid in China were highest in the month of May and were assessed in the range of US$ 535-550/ton FOB China. Tight supply conditions, several plant shutdowns in the region and higher upstream product prices contributed to the price rise.
Traders in China said that it is quite unlikely that 2013 would remain good because of the oversupply conditions, unless some plants remain shut down for a significant period of time. Prices were assessed in the range of US$ 430-475/ton FOB China in the last week.
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