US CHEMICAL PROFILE
than 120 global commodities, visit:
Acetic acid
BOBBIE CLARK PROFILE LAST PUBLISHED 25 JANUARY 2013
USES
Acetic acid is largely used to manufacture
vinyl acetate monomer (VAM), which ac-
counts for one-third of acetic acid consump-
tion. The biggest use for VAM is in the pro-
duction of base resins for water-based paints,
adhesives, paper coatings, films, textile fin-
ishes and chewing gum. The second largest
derivative for acetic acid is purified tereph-
thalic acid (PTA).
SUPPLY/DEMAND
PTA is the fastest growing outlet for acetic
acid, with demand being driven by a boost in
polyethylene terephthalate (PET) bottle resins
and polyester fibre.
However, PTA production has suffered
since the third quarter of 2014, when BP had
to shut down its Cooper River plant in South
Carolina, US. The plant has since restarted
but is running at reduced levels. The compa-
ny aimed to have it back to full capacity by
the end of February.
Global demand for acetic acid has tradi-
tionally been forecast at GDP levels, 1-3%/
year in the long term. Most investment is fo-
cused in China, with projects also planned in
India, Iran and Saudi Arabia.
Demand is hard to predict because of eco-
nomic conditions in the US, which could re-
duce offtake. In 2014, acetic acid demand
declined as a result of a reduction in
VAM production.
Planned and unplanned outages at VAM
plants in the US tightened supplies. The mar-
US ACETIC ACID
$/tonne, spot FOB export
750
725
700
675
Feb Feb
2014 2015
34 | ICIS Chemical Business | 2-8 March 2015
For up-to-date information on more
icis.com/about/price-reports
ket has since returned to normal rates. The ace-
tic acid market has strengthened accordingly.
Additionally, acetic acid’s use in oil and
gas well completions has reduced significant-
ly on the crash in crude oil prices.
PRICES
US spot acetic acid prices were stable at the
start of 2014 before spiking to a yearly high
$740/tonne on average. They have since de-
clined to the current price of $700/tonne, fol-
lowing a decline in feedstock costs and the
crude oil market.
Feedstock US methanol spot barge prices
have bounced on either side of 106 cents/gal
during February, as activity has been thin on
looming imports from China.
TECHNOLOGY
Of all the major industrial organic chemicals,
acetic acid has the most diverse production
technology and uses the most varied feedstocks.
Two principal methods involve producing
acetic acid from methanol (derived from natu-
ral gas), as followed by Celanese and other pro-
ducers; and from coal, which is Eastman
Chemical’s method. When methanol is used as
a feedstock, it is reacted with carbon monoxide.
Of all the major industrial
organic chemicals, acetic acid
has the most diverse
production technology and
the most varied feedstocks
Methanol carbonylation came about in
1913, when Germany-based BASF discovered
that methanol could be carbonylated to acetic
acid. BASF started its first methanol carbon-
ylation plant in 1960, using cobalt iodide as a
catalyst. Process development continues in
methanol carbonylation, which accounts for
more than 65% of world capacity.
Eastman uses coal as a feedstock, begin-
ning with high sulphur coal, and through
gasification, produces a synthesis gas that is
converted into a number of chemicals includ-
ing methanol, methyl acetate, acetic acid, and
acetic anhydride. Of the two methods, using
methanol as a feedstock has become the dom-
US ACETIC ACID CAPACITY
’000 TONNES/YEAR
Company Location Capacity
Celanese Clear Lake, Texas 1350
Eastman Chemical Texas City, Texas 590
LyondellBasell La Porte, Texas 544
Eastman Chemical Kingsport, Tennessee 277
DuPont La Porte, Texas 80
inant acetic acid production technology, ac-
counting for over 65% of global capacity.
Other processes involve the oxidation of
acetaldehyde (used by German producer
Wacker) and the liquid phase oxidation of n-
butane or naphtha. Japan-based Chiyoda de-
veloped an acetic acid process, Acetica,
which uses a heterogeneous supported cata-
lyst system and a bubble column reactor.
It is reported that this catalyst system has
high productivity, improved rhodium man-
agement and produces an acetic acid yield of
more than 99% from methanol.
OUTLOOK
Both the US and Europe are mature markets
for acetic acid, and there are no plans to in-
vest in additional capacity in either region.
The growth market is in Asia, where 1m
tonnes/year of capacity has been added in re-
cent years.
Meanwhile, US acetic acid exports gained
10% in 2014 year on year, according to the lat-
est data from the International Trade Commis-
sion (ITC).
Acetic acid exports totaled 1.1m tonnes in
2014, compared with 1.0m tonnes in 2013.
The increase was largely driven by a 34.0%
increase in exports to Belgium, the top desti-
nation for US acetic acid exports.
Belgium received 568,884 tonnes in 2014,
compared with 424,811 tonnes in 2013. The
other top destinations include Mexico, Brazil,
Canada and Argentina.
Meanwhile, acetic acid imports declined
by 48.3% in 2014 year on year. Imports to-
taled 26,988 in 2014, compared with 52,224
in 2013.
The top sources of imports include Canada,
China, South Korea, Mexico and Germany. ■
Subscribe to ICIS pricing reports to keep
up with a wide range of chemical markets
across the globe at icis.com
www.icis.com