Acetic Acid Prices – Historical Graph [Realtime Updates]

Why are acetic acid prices fluctuating?

1. Production Cost

With competitive price and timely delivery, SL Tec sincerely hope to be your supplier and partner.

Generally, production expenses significantly influenced acetic acid prices. The need for raw materials such as methanol and carbon dioxide, utility, equipment and technology requirements, labor, packaging, and transportation all reflect its manufacturing costs. Additionally, acetic acid production requires extensive use of energy which contributes to higher prices for acetic acid to maintain profitability.

2. Material Cost

Acetic acid prices rely on raw materials like methanol and acetaldehyde. Any supply, demand, and cost changes of these directly impact the cost of its production and final market price.

3. Global Demand

When demand for acetic acid outpaces supply, it creates imbalance and surging of its global prices. It is a critical raw material used in the production of textiles, plastics, pharmaceuticals, and food processing. Therefore, the various needs of these sectors influence the volatility of acetic acid prices.

4. Geopolitical Condition

Location affects the availability of resources essential for acetic acid production. For instance, resource access or trade restriction disrupt the production process, affecting supply and ultimately influencing its prices. Moreover, trade conflicts between nations affect its costs by altering the accessibility of imported acetic acid.

The chemical industry faces challenges beyond other manufacturers: our work is hazardous by its nature, so safety is our priority. There are innumerate regulations for us to abide by and stay up to date with.

And we have exacting standards for our supply chain.

It&#;s still possible to save money within these restrictions. We&#;ll look at some methods below, split between raw materials and indirect goods.

Raw Materials (Direct Goods)

The lynchpin of our processes and delivery to our customers. One impurity can ruin a whole batch.

Understandably, we won&#;t switch suppliers on a whim. But that doesn&#;t mean you can&#;t get better value.

Secondary Sources

It can be hard to find and approve secondary sources for raw materials, but it&#;s worth the effort. It&#;s near impossible to get accurate pricing without approving a supplier for use. Price indices can&#;t give you an accurate picture of what it costs to supply to your site specifically, though they can be a useful guide. Similarly, suppliers are generally protective of their commercial information and other times they will price low to get initial business interest.

One of the benefits of approving a secondary source is that the chemical industry is here for the long term, and even if your new supplier isn&#;t the cheapest now, there&#;s no telling what will happen in the coming years. When the competitive landscape changes, you'll be ready.

If you also find a source from a different manufacturer (not just distributor), you're helping reduce your risk profile and making your supply chain more resilient to disruptions.

Analyse Additional Costs

There are always costs beyond the price tag.

If you want to learn more, please visit our website Acetic Acid Production Process.

One of the biggest things that can save you money is to review how you&#;re packaging and transporting raw materials. It may sound like the decision of the supplier, but often buying organisations specify things that puts up the price.

For example, are you transporting water or air? Materials should be ordered at the highest viable concentration for your process (and within legal restrictions). Transporting something that&#;s more diluted means you&#;re likely paying for water (or similar) to be moved around the country. An example is caustic being ordered at lower concentrations than 47%.

Another factor to look at in your organisation is how quickly materials are being offloading and whether there is any demurrage charged. Offloading bulk materials is time-consuming, but there could be ways to speed it up. By speaking with your supplier you may find that other customers are able to offload faster, or give them a wider window for delivery.

For non-bulk materials there&#;s a huge range of packaging options. Some of these are chosen for safety reasons and sometimes they&#;re chosen because &#;we always receive it like that.&#; Having non-standard packaging can increase your prices and alter your lead times.

Where possible, speak to your distributors about how most customers take the material and try to receive the goods in the simplest way possible.

Indirect Costs

Indirect costs include anything that doesn&#;t go into your products, so they&#;re usually PPE, IT and engineering equipment.

Most industries can easily change their indirect costs, but in the chemical industry we have to consider safety and quality above price.

Consolidate Spend

Even without switching products, sometimes there are opportunities to consolidate spend. This means grouping lots of similar items together to get a price list including all of them. Although you don&#;t have to commit to an exact quantity of goods to order, the supplier will reward your custom with lower prices because they are becoming the preferred supplier for all items.

It&#;s possible to consolidate spend and maintain the same specifications for products, so your end users will be happy. For example, you could move all your valve suppliers to one distributor, potentially lowering their prices without changing the valve specification.

Reduce Transaction Costs

Another great way to reduce costs is to look beyond just the price tag. Every time an organisation orders something, it takes time and money. The touch points with the supplier such as asking for a quote, reviewing a specification, placing an order, receiving the goods and paying an invoice are all part of the transaction cost.

These hidden costs can be reduced and free up employees&#; time for more productive tasks.

Transaction costs can be reduced by:

• Vendor Managed Inventory
• eSourcing
• Vending machines
• Consolidated invoices

Fully Utilising Suppliers&#; Services

Engineering and MRO suppliers are innovative and are setting themselves apart from the competition by offering &#;free&#; services such as condition monitoring.

Against common logic, many suppliers want their customers to spend LESS money with them, because it means their products are lasting longer!

Speaking with key suppliers and listening to their suggestions and capabilities can come up with brilliant ideas for saving money.

Conclusion

It may be harder to save money in the chemical industry, but it&#;s certainly possible. Think innovatively and work closely with your key suppliers.

With a little bit of extra thought, your supply chain will power your business goals. 

Want more information on Methyl Acetate Plant? Feel free to contact us.