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SunSirs: The Contradiction between Supply and Demand Has Intensified, and the Domestic Acetic Acid Market Continues to Weaken

August 24 2020 08:39:12     SunSirs (John)

Price trend

According to the monitoring of the bulk data of SunSirs, the domestic acetic acid market has been steadily weakening. As of August 20, the average price of acetic acid in East China was about 2,390 RMB/ton, a decrease of 9.24% from 2,633 RMB/ton at the beginning of the month. At present, the average price of acetic acid in Shandong region is 2,350-2,450 RMB/ton, the average price of acetic acid in Jiangsu region is 2,300-2,400 RMB/ton, the average price of acetic acid in Zhejiang region is 2,450-2,550 RMB/ton, the average price of acetic acid in Henan region is about 2,200-2,250 RMB/ton, the average price of acetic acid in Hebei region is 2,500-2,550 RMB/ton, the average price of acetic acid in Northwest China is around 2,100 RMB/ton.

Analysis review

At present, the domestic acetic acid market is stable and soft. The overall operation of the company is stable, the spot supply in the market is sufficient, and the inventory of some companies is gradually accumulating. Due to the gradual accumulation of inventory, some companies bid for sale in order to prevent the market from being over-pressured, which intensify the downward trend of the market. Coupled with the small number of new orders, the market is obviously bearish.

In the upstream market, the methanol market fluctuated downward, and the news of corporate overhauls and negative impacts failed to effectively boost market confidence. The overall transaction in the industry was still weak. The current methanol price is around 1,615 RMB/ton. In the downstream, acetic acid downstream industries such as vinyl acetate and acetate have good cost support, but the downstream market demand is sluggish, and there are insufficient transactions in the industry. In order to prevent excessive inventory pressure, companies sell at profit.

Affected by poor downstream market demand, the international acetic acid market is operating weakly. The Asian acetic acid market is quoted at around 280-320 US dollars/ton; the European market is currently around 530 Euro/ton; the North American market is currently around 440 US dollars/ton.

Market outlook

The acetic acid analyst of SunSirs believes that the current domestic acetic acid enterprises are operating at a high level, the market is sufficient, and the contradiction between supply and demand is increasing day by day. The industry has a strong bearish attitude and is expected to operate weakly in the short term.

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