- Global acetic acid prices increased in Q1 2026 due to plant maintenance and reduced operating rates tightening supply, while Middle East tensions and Strait of Hormuz disruptions raised freight costs and supported higher prices.
- Rising methanol prices, driven by constrained imports and geopolitical disruptions, increased production costs and sustained upward pressure on acetic acid prices.
- Higher prices supported downstream derivatives like acetic anhydride, though overall demand remained cautious due to elevated costs and weak industrial activity.
Asia
In China, prices were about 2.93 RMB/kg (FOB) in January and increased to around 3.05 RMB/kg in March, with prices rising by approximately 13% quarter-on-quarter and 5% from February to March. The market trend reflected supply-side tightening early in the quarter due to plant maintenance, followed by inventory pressure and weak demand in February. In March, prices rebounded as operating rates remained constrained and inventories declined, while methanol feedstock costs rose sharply due to reduced imports and geopolitical factors. Downstream support improved, with acetic anhydride prices increasing in March, reinforcing demand fundamentals. In India, prices were about 34 INR/kg (FOB) in January and around 40.53 INR/kg in March, with a 10% increase from February to March. The rise was primarily linked to higher import costs, supply constraints, and increased logistics expenses due to disruptions in global trade flows. The Middle East conflict and congestion at the Strait of Hormuz significantly impacted freight rates and delayed shipments, tightening regional availability.
Europe
In Europe, acetic acid prices followed an upward trajectory, driven by elevated feedstock costs and energy price volatility. The Middle East conflict led to a surge in crude oil and natural gas prices, increasing production costs across the chemical value chain. Additionally, rising logistics costs and supply chain disruptions linked to the Strait of Hormuz congestion added upward pressure. However, downstream demand remained constrained due to weak industrial activity and cautious procurement patterns, limiting the pace of price increases.
North America
The North American market also witnessed firm pricing, supported by higher feedstock costs and global supply tightening. Elevated crude-linked raw material costs and increased freight expenses contributed to upward price momentum. Demand conditions remained moderate, with buyers focusing on inventory management amid persistent price volatility.