China's exports of acetic acid in March tumbled to a mere 6,819 mt, down by 61% from the 6,819 mt exported in February, according to China Customs data released Tuesday.
Compared with the same month last year, exports collapsed 91% as last year the gap between prices in Europe and China for AA was much wider compared with March this year.
China is a net exporter of AA and virtually does not import AA anymore due to competitive domestic prices.
Last year in March China exported around 25,000 mt to destinations in Europe and around 25,000 mt to the Indian market.
In March 2011, the spread between FOB China and FOB Northwest Europe was $269/mt considering average prices for FOB China at $516/mt and FOB NWE at $785/mt during that month.
In March 2012, however, the difference between FOB China and FOB NWE AA prices was $187.80/mt, considering an average price for FOB China at $411.20/mt and for FOB NWE at $599/mt.
Imports of vinyl acetate monomer, a major derivative of AA, slipped in March by 15% compared with February to 32,726 mt.
For producers in the US, who typically have a surplus of VAM to export, the European market was more attractive than the Chinese due to the relatively higher prices there. For March, the average CFR China VAM price was $984/mt, compared with $1,105.20/mt FOB NWE, while US Gulf FOB prices were $839/mt.
Year on year, imports rose by 57.9%, with especially Saudi Arabia origin VAM imports in China rising to 9,972 mt, compared with 1,573 mt in the same month last year.
China's AA exports in March Mar 2012 Feb 2012 % Change India 0 6,292 -100 Japan 0 1,986 -100 South Korea 2,542 997 155 Thailand 1,050 0 NA Spain 1,502 7,496 -80 Total* 6,819 17,361 -61 * Includes destinations receiving small or sporadic volumes Source: Chinese customs
China's VAM imports in March Mar 2012 Feb 2012 % Change Saudi Arabia 9,972 9,983 0 Taiwan 22,723 21,984 3 US 0 6,373 -100 Total* 32,726 38,340 -15 * Includes destinations receiving small or sporadic volumes Source: Chinese customs
