Acetic acid will be in short supply in Asia this year, according to Methanol Market Services Asia (MMSA).

Strong Chinese demand and poor regional supply will see the market stretched to its limits, says Mark Berggren, the managing director of the company.

Chinese demand is being driven by high economic growth as well as the modernisation of the polyester fibre sector, and the country is currently importing 500,000 tonnes a year of acetic acid.

Mr Berggren claims that acetic producers using methanol carbonylation technology are seeing profits of over £130 per tonne, despite high feedstock prices.

"Methanol is highly affordable given these margins," he told ICIS.

He added that methanol would remain "quite tight" for the first half of 2006 and maybe even longer.

BP Formosa introduced a 300,000 tonne per year plant in Taiwan during 2005 and Celanese is expected to provide a 600,000 tonne per year facility in China by 2007.

MMSA forecasts that total 2006 Asian acetic acid demand will be 4.54 million tonnes this year, compared to 8.28 million tonnes worldwide.


Ÿ Adfero Ltd