SunSirs: Negative Factors Are Overlying and EA Market Weakens

Price trend

According to the monitoring of the bulk data of SunSirs, the East China EA market has been steadily weakening. As of August 20, the average price of enterprises in East China was around 5,642 RMB/ton, a decrease of 0.7% from the beginning of the week and an increase of 0.76% from the beginning of the month.

Analysis review

At present, the overall domestic EA market is relatively stable, the spot supply in the market is sufficient, the cost-side market operation trend is slack, and the downstream market demand is sluggish, resulting in the gradual accumulation of corporate inventory, and the EA production enterprises are forced to bid for sale. EA in East China is about 5,500 RMB/ton, EA in North China is about 5,450 RMB/ton, and EA in South China is about 5,850 RMB/ton.

In terms of raw materials, the contradiction between supply and demand in the acetic acid market has intensified. Enterprises are gradually bidding for sale in order to prevent excessive stock pressure in the market outlook, and the market is obviously bearish. Ethanol was stable but soft, the transaction price of raw corn fell, some production enterprises in Henan Province resumed normal operation, and the company's inventory increased relatively. The downstream mostly just needed to purchase, and small orders were the main focus.

The overall performance of the international EA market is relatively stable. The port price in the European market is around 750 Euro/ton; the port price in the North American market is around 610-660 US dollars/ton.

Market outlook

The EA analyst of SunSirs believes that the decline in raw material prices has led to no more favorable factors for the EA market. The decline in cost is an important reason for the weakening of the EA market. In addition, the downstream market demand is flat and the negative factors are superimposed. The EA market is expected to decline in a short period of time.

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