On July 22, the domestic chloroacetic acid (MCA) market continued its weak and stable consolidation trend, with trading activity remaining subdued. Influenced by a supply-demand imbalance and limited cost support, market prices persisted at lower levels.

I. Market Overview: Supply Exceeds Demand, Prices Consolidate at Low Levels

According to the latest market monitoring data, the average spot price for domestic chloroacetic acid today was recorded at 2,750 RMB/ton, holding steady compared to the previous trading day.

Currently, operating rates among domestic MCA producers remain at low-to-moderate levels. However, against the backdrop of persistently sluggish downstream demand, spot availability in the market remains ample, leaving the supply-exceeding-demand pattern largely unchanged:

• Operations & Shipments: Manufacturers generally face shipping pressure and inventory buildup. Although producers in certain regions are experiencing operating losses, most mainstream quotes remain steady as companies wait and watch while maintaining customer relations.

• Downstream Purchasing: Operating rates in downstream sectors remain low, with large bulk purchases being rare. Market transactions consist primarily of small, hand-to-mouth orders, with a strong wait-and-see sentiment prevailing across the industry.

Mainstream Transaction Prices for Flake Chloroacetic Acid by Region:

• Hebei Region: 2,700–2,800 RMB/ton

• Shandong Region: 2,700–2,800 RMB/ton

• Henan Region: 2,650–2,750 RMB/ton

• Shanxi Region: 2,650–2,750 RMB/ton

II. Supply, Demand, and Cost Analysis

• Supply Side: Operating loads at domestic manufacturing plants are generally low. Facilities in Henan operate at medium capacity, while those in Shanxi maintain low operating rates. Despite limited overall industry production, inventory pressure on manufacturers persists due to weak downstream absorption capacity.

• Demand Side: Compounded by summer high temperatures and off-season effects, operating rates across downstream industries remain suppressed. A few enterprises have even temporarily paused operations to mitigate heat impact, leading to passive stocking attitudes and a lack of support from large orders.

• Cost Side: Glacial acetic acid, the primary raw material, is fluctuating within a narrow range, offering limited cost support and insufficient momentum to drive a price rebound.

III. Market Outlook: Narrow Fluctuations with Weak Fundamentals

Considering both cost factors and market fundamentals:

1. Persistent Shipping Pressure: In the short term, MCA manufacturers will continue to face resistance in moving inventory, leading to a slow destocking pace.

2. Extended Off-Season Demand: As high temperatures persist, downstream buyers are unlikely to engage in large-scale restocking, continuing to procure strictly on a low-bid, need-to-buy basis.

3. Limited Cost Support: Raw material (acetic acid) prices are expected to remain generally stable, providing minimal upward push for MCA prices.

Forecast: Short-term domestic chloroacetic acid market prices are projected to fluctuate within a narrow range of 2,650–2,800 RMB/ton. Market participants should closely monitor downstream operating rate adjustments and raw material acetic acid price trends.