There has been acute supply of chemical in the domestic market which in turn has led to significant hike in prices. The prices are expected to soar up further as there is no relief in the supply end. As reported earlier there has been major shut down and force majeure at Acetic Acid plant based in US in last few weeks. This has led to higher demand from US market for Acetic Acid. To mention few BP has shut down its Acetic Acid unit based in Texas.
China is one of the prime suppliers of Acetic Acid in Asian as well as American market. Prices have increased by more than 15% in domestic market of China. The other major units in Asian are also under maintenance.
Acetic Acid unit of Celanese based in Singapore was shut down last month and is likely to resume production in June. The other major unit Chang Chung based in Taiwan has also resume production in this month after technical fault.
In China itself the market condition are not so good. The Acetic Acid supply is very limited as many of the major units are shut down or will undergo maintenance. To add further there has been heavy demand from PTA industry along with VAM manufacturers. Few major untis are expected to start their production in the next month.
