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The U.S. Monochloroacetic Acid market continued to experience weak pricing trends during the second half of February 2025, as excess supply outpaced demand across key downstream sectors, including agrochemicals, personal care, and pharmaceuticals. Readily available feedstocks, particularly acetic acid and chlorine, contributed to surplus inventories, maintaining downward pressure on prices. Despite stable demand from herbicides, detergents, and industrial chemicals, the abundant supply of Monochloroacetic Acid kept market conditions bearish. Falling freight rates improved export competitiveness, yet uncertainties surrounding U.S.-China trade policies and fluctuating raw material costs remain potential disruptors in the global market. Monochloroacetic Acid manufacturers continued operating at elevated production levels, leading to an oversupplied domestic market situation. Stable access of chlorine and acetic acid ensured steady production rates, while increased output and few export hurdles contributed to rising inventories. The decline in U.S. freight rates further has led to subdued Monochloroacetic Acid prices as Imports prices hovered at the lower side. Additionally, post-Lunar New Year production adjustments and stable logistics flows helped maintain an ample supply of Monochloroacetic Acid, preventing any significant price recovery. In January 2025, the production of Carboxymethyl Cellulose (CMC), a major downstream application of Monochloroacetic Acid, remained sluggish due to mixed performance in U.S. retail and food service sales. While overall retail sales declined 0.9% from the previous month, they increased 4.2% year-on-year. However, a 1.2% drop in retail trade led to weaker demand for Carboxymethyl Cellulose (CMC) in non-essential applications, including cosmetics and premium household products. Despite steady demand from the food service sector, which recorded a 5.4% annual increase, reduced consumer spending on discretionary goods negatively impacted the Monochloroacetic Acid market. Lower purchasing activity in personal care and detergents prompted a decline in CMC production, forcing manufacturers to adjust output levels to prevent excessive stock accumulation. A recovery in retail consumption will be crucial in stabilizing Monochloroacetic Acid pricing and mitigating further market downturns. As per ChemAnalyst, the Fast-Moving Consumer Goods (FMCG) sector showed weak growth in January, with restrained consumer spending and sluggish market activity contributing to limited demand for Monochloroacetic Acid in household and personal care applications. Moving forward, industry players will closely monitor retail trends and trade policy shifts that could impact pricing and demand for Monochloroacetic Acid. Given the persistent oversupply and weak downstream demand, pricing pressure is likely to persist in the near term. Additionally, fluctuations in stock prices and raw material costs could further influence market sentiment. Thus, the price of Monochloroacetic Acid is expected to remain subdued. |
