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MCA (Monochloroacetic Acid) Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of MCA (Monochloroacetic Acid) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Monochloroacetic Acid Price Trend for October-December of 2023

Asia

In Asia, particularly China, the monochloroacetic acid (MCA) price trend in Q4 2023 mirrored the volatile trend of its primary feedstock, acetic acid. Starting the quarter with declining prices, the monochloroacetic acid market saw a stabilization phase in November, following the trend in acetic acid prices. However, the surge in acetic acid prices in early December, driven by supply constraints and robust downstream demand, led to a brief spike in MCA prices as well.

Monochloroacetic Acid Price Trends

This spike was, however, short-lived, as MCA prices corrected downwards towards the end of December, influenced by the adjustments in acetic acid prices and the fluctuating prices of chlorine, the other key feedstock. The overall trend for monochloroacetic acid in Q4 2023 in the Chinese market was characterized by a zigzag pattern, generally trending lower compared to earlier in the year.

Europe

The European monochloroacetic acid market in the fourth quarter of 2023 experienced oscillatory price movements, closely following the trend in the acetic acid market. Supply disruptions and inconsistent demand from downstream industries, which include sectors like agrochemicals and pharmaceuticals, led to significant price fluctuations. The dampened demand for acetic acid in the region, coupled with the variable chlorine prices, contributed to an unstable market environment for MCA. This instability reflected in the fluctuating MCA prices throughout the quarter, ending the year on a somewhat uncertain note.

North America

In North America, the Monochloroacetic acid price trend in Q4 2023 was relatively stable, reflecting the trend in acetic acid prices. Despite some stability in the costs of methanol and natural gas, key components in acetic acid production, the MCA market faced challenges due to a downturn in downstream demand. This was partly attributed to a slowdown in sectors like construction and manufacturing, which impacted the demand for MCA derivatives.

The fluctuating chlorine prices added another layer of complexity to the market dynamics. As a result, the MCA market in the US navigated through a landscape of stable feedstock prices but challenged by reduced demand and fluctuating chlorine costs, leading to a mixed market scenario as the year concluded.

Analyst Insight

According to Procurement Resource, the monochloroacetic acid price trend is expected to stay linear to downward inclined in the beginning months of 2024. The primary reason for the trend is anticipated to be underlying in the slumping price trend for acetic acid and lukewarm chlorine prices.

Monochloroacetic Acid Price Trend for the July-September of 2023

Asia

In the initial phase of the third quarter, the monochloroacetic acid price trend struggled to find the required momentum. This struggle was fueled by the excess influx of the material while the rates of procurement from the end-user industries remained bleak. But in the later months, the sentiments of the monochloroacetic acid market improved at a gradual pace. This trend of the monochloroacetic acid price graph was supported by the increasing cost of feedstock materials and stable demand from the domestic and international industries.

Europe

The third quarter of 2023 experienced a significant decline in the monochloroacetic acid price trend. The interest of consumers was bleak during this phase of the year while the inventories were sufficient. The market also suffered from the economic downturn of the majority of European countries, which was evident in the excess pressure exerted by the rise in inflation and interest rates charged by banks. As a consequence of this, the performance of the downstream industries stumbled throughout the quarter, resulting in a downfall in the monochloroacetic acid prices.

North America

The majority of the third quarter followed a downward trajectory of monochloroacetic acid prices. The market faced this fall as a result of subdued demand and the rising level of inventories. The dip in feedstock prices also supported the decline in the monochloroacetic acid price graph. Further, as seen in the Asia Pacific and European countries, the sentiments of downstream industries were also not in favor of the rise in monochloroacetic acid prices.

Analyst Insight

According to Procurement Resource, the price trend of Monochloroacetic Acid are expected to take a downturn as a consequence of a weak downstream market.

Monochloroacetic Acid Price Trend for the First Half of 2023

Asia

In the Asia-Pacific region, the fall in the price trend of monochloroacetic acid started in the second half of the first quarter. In the first half, the market dynamics were supported by steady demand from the downstream industries and a rise in sales in the agrochemicals and dyes sector. However, soon, the prices of monochloroacetic acid plunged due to a slower recovery of the Asia-Pacific economy and a build-up in inventory levels. In the second quarter, the fall in freight charges and the fall in global demand for monochloroacetic acid led to a downward movement in its price trend.

Europe

The first quarter of 2023 followed a rise in the prices of monochloroacetic acid during the initial months. The momentum of monochloroacetic acid prices was supported by a steady supply of products and a rise in demand from the downstream sector during this phase. However, from the second half, the level of inventories began to rise on account of a hike in production rates while the demand did not change its pace. Further, in the second quarter, the economic conditions and reduction in the purchasing potential of buyers pushed the price trend of monochloroacetic acid towards a negative trajectory.

North America

In North America, the first quarter of 2023 showed oscillations in the prices of monochloroacetic acid. Initially, the surge in market activities of its derivatives supported the growth of monochloroacetic acid prices, and with limited supply, the price trend of monochloroacetic acid surged.

In the second half of this quarter and throughout the second quarter, however, the prices of feedstock materials fell, and along with that, the downstream sector also took a downward toll. The market thus witnessed a huge reduction in the number of new orders, and as a result, the price trend of monochloroacetic acid declined.

Analyst Insight

According to Procurement Resource, the price trend of monochloroacetic acid is expected to decline in the upcoming quarters as the rates of procurement from the downstream industries seem to be struggling amid weak global economic conditions.

For the Second Quarter of 2022

Asia

The rate of monochloroacetic acid has been declining since the second quarter of 2022. China's market for monochloroacetic acid saw a decline as a result of a plenty of supplies and weak demand. Monochloroacetic Acid prices continued to decline due to low feedstock acetic acid prices. The decline has been linked to a rise in domestic market inventories, which have been supported by higher production and decreased offtakes, followed by a decline in demand from the downstream dyes and agrochemical industries.

But as export demand declined and manufacturers battled supply shortages, growth in China's manufacturing activity slowed in June. The output of monochloroacetic acid and new export orders both decreased, which brought down the price of the substance. Monochloracetic acid prices were approximately USD 955/MT.

North America

Monochloroacetic Acid prices in North America showed favourable market trend in this quarter. The price of the feedstock acetic acid and acetic anhydride were affected by a sharp increase in upstream crude value, which further contributed to the increasing trend in monochloroacetic acid costs. Moreover, from the price charts it is evident that rising demand from the downstream Sodium Mono Chloroacetate and Ethyl Acetate markets drove up regional market prices even higher. In addition, a tight supply, soaring demand, and worries about sky-high inflation drove MCA prices to all-time highs in the USA market.

Accordingly, monochloroacetic acid prices in June were approximately USD 1990/MT. Overall, the factors contributing to the high price of MCA across the region, particularly the demand from the agrochemical industry for insecticides and herbicides, have remained stable.

Europe

A shortage of one of the most important raw materials, acetic acid, was noted in the second quarter of 2022, which was reflected in an increase in monochloroacetic acid prices in Europe. Additionally, as spot prices for MCA rose, regional market trading activities went up. Monochloroacetic Acid prices were around USD 2020/MT during June.

For the Fourth Quarter of 2021

Asia

Due to decreasing raw material costs, MCA in the APAC region fell in this quarter. For a variety of factors, upstream acetic acid was found to be growing in October, placing pressure on downstream products to display buoyancy. However, during the quarter, the price of acetic acid plummeted by more than 10%, creating a major reduction in the price of different downstream derivatives in November.

In December, MCA prices were around 95,000 INR/MT ex-depot Mumbai. Due to increased demand for the usage of MCA for celluloses, agrochemicals, high-foaming surfactants, and personal care items, Asia Pacific is predicted to rise at a much faster rate than the rest of the world by 2022. Furthermore, the region's market has grown significantly due to rapid expansion in the chemical and materials sectors, as well as increased demand for choloracetic acid from other industries.

Increasing advancements and improvements in the textile sector in Asia Pacific countries such as Indonesia, India, and China, among others, are likely to raise demand for MCA and drive revenue growth in the area.

Methanol, acetic acid, and heavy feed inventories for petroleum refinery would see tariff reductions in India starting in February 2022. Companies that use chemicals as raw resources are positioned to gain from the duty reduction, while chemical producers are likely to suffer. This decrease in feedstock acetic acid can cause a downward trend in the price of MCA.

Europe

In the fourth quarter of 2021, there was a scarcity of crucial raw materials across Europe, leading to higher MCA prices on the local market. As resources became increasingly scarce, manufacturers sought things from a multitude of different sources.  The availability of MCA on the market increased as the quarter progressed. The pharma and adhesives sector's offtakes stayed high in Q4 in terms of demand. In October, FOB Hamburg MCA prices were1785 USD/MT, but by December, they had dropped to 1630 USD/MT.

North America

North America is expected to account for a disproportionately large share of revenue during the forecast period, owing to growing demand for monochloroacetic acid from a variety of end-use industries, including agriculture, medical and pharmaceuticals, and chemical, for the manufacture of agrochemicals, ibuprofen, and vitamins. Additionally, the presence of major manufacturers in the region is a significant factor driving the market's revenue growth.

For First, Second and Third Quarters of 2021

Asia

Nouryon (Amsterdam, Netherlands) and Atul successfully began manufacturing at Anaven in April 2021. Anaven is India's largest MCA production complex, with a current capacity of 32,000 MTPA and the potential to expand to 60,000 MTPA quickly. In December 2021, the plant was significantly extended.

MCA supply in China remained constrained in the first quarter of 2021 due to plant turnarounds over the Chinese Lunar New Year holidays in February. The downstream manufacturing plants' margins were lowered due to a lack of supply of the feedstock acetic acid and liquid chlorine.

Demand from the downstream segment increased as offtakes from the personal care, food, and pharma sectors remained stable. Increased pricing of essential feedstocks produced a multifold increase in MCA prices, which settled at 1250 USD/MT FOB Shanghai in March.

As a result of the abrupt reversal of several large upstream production facilities in the second quarter of 2021, the MCA market experienced a demand-supply imbalance. In China, however, a sharp increase in the price of the raw ingredient acetic acid aided the pricing trend in the local market. As commercial and industrial operations improved in the Northeast Asian region, demand from downstream industries remained strong.

In India, however, due to the impact of the second COVID wave, raw material prices fell due to less industrial activity and lower demand from the downstream market. As a result, producers reduced their offerings by specific margins, with Ex-Works Mumbai MCA prices estimated at 1073 USD/MT in Q2 2021.

During Q3, the general market prognosis for MCA in the Asia Pacific region showed an upward tendency. Back-to-back positive revisions in upstream acetic acid prices in India contributed to a new rising trend in MCA pricing in the domestic market. Following the upward trend, Ex-Works MCA prices in western India increased from 1106 USD/MT to 1201 USD/MT in the third quarter.

Because the product is primarily imported from China, a slew of problems loomed over the supply chain this quarter, causing Chinese origin cargo deliveries to be delayed. Anaven, which has a stranglehold on the MCA market in India, was heard positively modifying its rates to protect its margins from the steady rise in acetic acid prices.

Europe

Due to low stockpiles and continuous offtakes from the downstream market, European MCA supply remained limited during the first quarter of 2021. Due to a shortage of raw materials and a transportation lag from the western region due to serious freeze weather, the Northwest regional facilities functioned at a slow pace. As the downstream food and pharma markets improved, demand skyrocketed.

As different US plants resumed production following the winter storm, access to feedstock chemical increased slightly, resulting in a reduction in MCA supply limitations in the second quarter of 2021.

A shortage of critical raw materials was noted across the European region in the third quarter of 2021, resulting in higher MCA costs on the local market. Manufacturers sought items from a variety of sources as materials grew increasingly difficult to come by. As the quarter came to a close, the provision of MCA on the market improved. In terms of demand, the construction sector's offtakes remained high in Q3.

North America

During the first quarter of 2021, regional MCA supplies were limited due to limited availability of acetic acid due to disruptions in production at numerous regional plants. The stoppage of Formosa Plastics' 910,000 MT per year feedstock chlorine factory in the first half of Q1 added to the crisis. Due to lower pricing than the domestic market, spot buyers in the region grew more inclined to the Asian market. Despite a regional shortage that prompted a multifold increase in MCA prices in the timeframe, demand remained buoyant due to improved intake from the downstream pharmaceutical and food sectors.

After seeing a substantial increase in pricing throughout the second quarter, market sentiment for MCA in the North American region stabilised in the second quarter. Supplies improved in the United States when production in the Gulf region revived, owing to higher upstream acetic acid output. With the resumption of industrial activities, demand from the downstream surfactant, textile, and coating sectors grew.

Spot MCA prices  in the North American region rose throughout the most of the third quarter, owing to high demand from the agrochemical, pharma, and surfactant industries. The spike in pricing was fueled in part by rising acetic acid costs from mid-July to the last week of September.

During the hurricane season, numerous chlor-alkali production operations on the US Gulf coast shut down, causing supply disruptions throughout the region. However, production slowed at the end of Q3, and MCA prices fell in early Q4 as the feedstock's rising trend slowed.

For the Year 2020

Asia

The chloroacetic acid market in China climbed and then declined in July, with the overall climate becoming more sluggish. The downstream demand improved since the beginning of the month, raw material costs continued to rise, the expense of chloroacetic acid support rose and manufacturers offered lower MCA prices. Even though the price of liquid chlorine remained high since the middle of the month, the acetic acid market had been loose, causing the price of chloroacetic acid to fall.

Due to lower demand for downstream pesticides, pharmaceutical intermediates, and other industries in the second half of the month, China's demand for chloroacetic acid declined, and prices continued to fall. In August, China's investor sentiment remained negative, with a general lack of transaction activity. Chloroacetic acid producers had a high operating load, with low downstream demand, resulting in a growth in inventory, shipping pressure, and a limited range of lower prices.

Due to restrictions on international shipments across multiple trade channels along Southeast Asia, India's monochloroacetic acid (MCA) supply remained limited, despite worries of a new coronavirus outbreak in Europe. Consistently growing acetic acid feedstock prices also played a significant effect in constraining supplies.

Rising agrochemical demand in APAC as a result of agricultural expansion prompted the Indian government to implement programmes such as the PLI plan to boost local pesticide manufacturing. This was expected to relieve supply pressure in India, resulting in future price stability for MCA, which is used in a variety of herbicides.

Europe

Domestic demand slowed as a result of the pandemic, causing trade networks to the APAC area to become congested. With the installation of new plants from PCC in Poland and Neuryon in the Netherlands, monochloroacetic acid availability in the region improved significantly. This intended to improve domestic supply, allowing for long-term price stabilisation. Due to increased demand for agrochemicals in North America and the Asia-Pacific region, exports increased towards the end of the year.

North America

High agricultural investment in the United States, Canada, and Mexico shaped the local market demand that rebounded after the COVID impact. Due to the coronavirus epidemic, which delayed market activity in the western hemisphere in Q4, access of feedstock acetic acid in the US remained constrained. As a result, its price increased, resulting in higher production costs for the derivative monochloroacetic acid.

Procurement Resource provides latest prices of MCA or Monochloroacetic Acid. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

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About

MCA is a chlorocarboxylic acid and a haloacetic acid. It is extracted from acetic acid. It is a conjugate acid of a chloroacetate. In appearance, it a colourless to light-brown crystalline material. It is miscible in water and sinks in it. It is combustible in nature. It is one of the most important halogenated derivatives of acetic acid.

Product Details

Report Features Details
Product Name MCA (Monochloroacetic Acid)
Industrial Uses Carboxymethyl Cellulose Or CMC, Pharmaceuticals, Agrochemicals, Dyes, Cosmetics
Chemical Formula C2H3ClO2
Synonyms Chloroacetic Acid, 79-11-8, 2-Chloroacetic Acid
Molecular Weight 94.5 g/mol
Supplier Database Acros Organics, Nouryon, CABB Group GmbH
Region/Countries Covered Asia Pacific: China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand

Europe: Germany, France, United Kingdom, Italy,  Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece

North America: United States and Canada

Latin America: Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru

Africa: South Africa, Nigeria, Egypt, Algeria, Morocco
Currency US$ (Data can also be provided in local currency)
Supplier Database Availability Yes
Customization Scope The report can be customized as per the requirements of  the customer
Post-Sale Analyst Support 360-degree analyst support after report delivery


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Production Processes

  • Production of MCA via Chlorination; and via Hydrolysis

In this process, acetic acid is chlorinated with acetic anhydride as a catalyst, which results in the formation of Monochloroacetic Acid with dichloroacetic acid and trichloroacetic acid as impurities. This product is further separated and refined to obtain the desired product.

Methodology

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

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  • Price Across Multiple Locations
  • Market Insights
  • Download Data in Excel Format
  • Short Term Price Forecasts
  • Prices of More than 400 Commodities and Utilities

Get in Touch With Us

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flag
INDIA

Phone: +91 1203185500

flag
UNITED KINGDOM

Phone: +44 7537 132103

Email: sales@procurementresource.com

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