Industrial Chemicals | Market report preview 10.2023

THE MOST UPDATED FINANCIAL PUBLICATION ON THE WORLD OF CHEMISTRY
MARKET REPORT
INDUSTRIAL CHEMICALS
OCTOBER 2023

WHAT’S
GOING ON
IN
MARKET?
THE
ACETIC ACID
During the second quarter, acetic acid prices
experienced a downward market trend, which
is continuing into the third quarter, and it is
assumed that the price may continue to fall.
The increase in interest rates to keep inflation
under control has created pessimistic market
sentiment, leading to a decline in demand from
the manufacturing sector throughout the entire
quarter. Moreover, plants operated at a normal
pace, maintaining an adequate level of stocks in
the internal market. Additionally, there was an
excess of low-cost imports from Asia, alongside
declining demand from industries such as
PVOH, VAM, and anhydride. Also, due to the
continuous price decline, buyers have been
hesitant to place large orders.
2

ECONOMIC INSIGHTS
In partnership with USI, Università della Svizzera Italiana
Production bottlenecks during
the economic recovery after the
pandemic together with rising energy
prices contributed to an increase in
average price levels. The economic
uncertainties related to the Russian
invasion of Ukraine have exacerbated
the precariousness of a stable recovery
triggering global ripple effects through
commodity markets, trade, financial
flows, and displaced people.
In the second quarter of 2023, the
average inflation rate among OECD
countries was 1.39% relative to the
previous quarter, and 6.49% relative
to the previous year.
These numbers are on a gradual
decline due to the repeated tightening
of monetary policy by major central
banks, including the European
Central Bank and the Federal Reserve.
Switzerland and China stand out as
(relatively) low inflation-exposed
countries. The OECD economic
outlook expects annual inflation
to decrease sharply in the coming
quarters, following further tightening
measures of the monetary policy by
central banks. According to recent
estimates, inflation will reach 5%
towards the end of the year and
decrease below 4% until the end of
2024.
8

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