Chloroacetic Acid Prices Explained

Chloroacetic acid prices show an upward trend as some Chinese production hubs are closed for maintenance. Adding optimism to the market is the continuous demand for downstream PTA (purified terephthalic acid) and EVA (ethylene-vinyl acetate) for acetic acid, leading to increased inquiry in export volumes.

Why are chloroacetic acid prices fluctuating?

1. Raw Materials Costs

The total manufacturing costs for chloroacetic acid are significantly influenced by changes in the price of the necessary materials. For instance, the domestic Chinese price of chloroacetic acid increased by 100 Yuan/metric ton during the fourth quarter of last year. 

This increase is due to rising raw material costs, such as acetic acid and chlorine. Furthermore, the limited availability and increased demand for this commodity in both domestic and foreign markets add pressure to its prices.

2. Market Demand

The chloroacetic acid price increased in different ways across North America, Europe, Northeast Asia, and India between November and December last year. The rising demand stems from various applications such as herbicides, glycine, carboxymethyl cellulose, and betaine. Furthermore, the spiking prices come from reduced supply and high costs of substitute goods such as sodium chloroacetate and chloroacetic acid.

3. Energy Prices

Also, the rising energy value contributes to its varying market prices. For example, the price of industrial power in Germany increased which has negative consequences for the European chemical industry, including the market for chloroacetic acid. Overall, high energy prices and gas shortages in the country are threats to economic growth which affects chloroacetic acid prices.

Which variables impact the price of chloroacetic acid?

• Raw Material Costs
• Market Demand
• Supply and Demand
• Market Competition
• Energy Prices
• Geopolitical Factors

Where does chloroacetic acid come from?

Chloroacetic acid or monochloroacetic acid (MCA) has a bifunctional molecular structure. It is primarily produced through chemical synthesis. Here is the production process of chloroacetic acid:

1. Acetic Acid Feedstock – Acetic acid and chlorine atoms are required for acetic acid molecule integration. Depending on the method selected, the reaction may be enhanced by the use of catalysts or certain reaction conditions.

2. Chlorination Reaction – When acetic acid is added to a reaction vessel, ( either with a catalyst present or under particular reaction conditions ) chlorine gas is bubbled through the acid.

A hydrogen atom in the methyl group is replaced with a chlorine atom as a result of the chlorine molecule reacting with acetic acid.

3. Purification and Isolation – The resultant mixture comprises chloroacetic acid, HCl, and any unreacted components. Then, it is isolated and separated from contaminants using purification processes including crystallization and distillation.

4. Neutralization – When hydrochloric acid is produced as a byproduct, neutralization is used to produce water and salt (either sodium chloride or another salt ). The necessity of this step depends on the desired level of purity for the chloroacetic acid product.

5. Final Product – The final product is obtained in the form of purified chloroacetic acid.

What are the uses of chloroacetic acid?

Chloroacetic acid has many useful industrial uses. However, handling it requires careful attention to safety precautions and regulations due to its poisonous and corrosive properties.

Strict safety protocols are regularly followed during industrial operations using chloroacetic acid. Some of its applications include:

1. Pesticides – Chloroacetic acid and its derivatives are essential ingredients in the formulation of certain pesticides and herbicides used in agriculture

2. Pharmaceuticals – It is a basic component of many different types of pharmacological molecules, such as antiviral and antibacterial ones.

3. Dyes – Also, it is used to make intermediates in the dye and pigment production process. They are in coloring fabrics, paper, and other materials.

4. Rubber Chemicals – The production of some rubber compounds uses chloroacetic acid for modifiers and accelerator purposes.

5. Water Treatment – It is crucial in water treatment procedures, serving as coagulants or flocculants to assist in eliminating impurities from water.

6. Surfactants – It is important in the production of surfactants which are vital in formulations like emulsifiers and detergents where it’s important to manage wetting and surface tension.

What is the future price of chloroacetic acid?

An increase in the need for thickening agents such as carboxymethyl cellulose and starch is expected to propel the expansion of the worldwide chloroacetic acid market. Also, it is anticipated to experience additional growth due to the rise of the chemical, pesticide, dye, and pharmaceutical sectors in China due to inexpensive manufacturing costs and easy access to raw materials.

A further factor contributing to its rise is the expanding use of chloroacetic acid in numerous end-use industries, such as petrochemicals, textiles, personal care, and healthcare. Moreover, the market witnesses the expanding trend of bio-based chloroacetic acid development which will open opportunities for sustainable applications.

Overall, the price of chloroacetic acid will be $0.98 per kilogram in 2028 and its market is projected to reach $908.4 million by 2029, at a CAGR of 3.5% during the forecast period.