Transaction Declined in the Chinese Adipic Acid Market (Dec 8-14, 2017)

In 2017, China exported 28,849.08mt of Chloroacetic Acid, down 7.24% year on year. High prices boosted by the strict environmental protection supervision in China were the major reason for the declines in export. The average price of chloroacetic acid in 2017 was RMB 4,182/mt, increasing 47.88% year on year.  

Turkey, Russia, Columbia, the U.S., and South Korea were the major importers of China’s chloroacetic acid. Influenced by the high prices of chloroacetic acid, the export to Russia and the U.S. in H2, 2017 slumped. If the Chloroacetic Acid prices remain above RMB 4,500/mt, the arbitrage window from China to Europe and America regions will close.

Based on the point of origin, Shandong Minji Chemical was the major exporter of chloroacetic acid. In Q4, 2017, the new 60kt/a capacity released. Moreover, the export prices were lower than other export prices. Shandong Minji Chemical mainly exported the goods to ease the inventory pressure.   

Though Shandong Minji was the major exporter, the Qingdao Customs had stopped the export of chloroacetic acid in 2017. Nanjing and Shanghai will be the two major customs when exporting chloroacetic acid.