SunSirs: EA Continued to Decline Due to the Superposition of Negative Factors

Price trend

According to the monitoring of the bulk data of SunSirs, the EA market continued to decline due to poor terminal demand and falling raw material prices. As of January 12, the average price of enterprises in East China was around 6,575 RMB/ton, a decrease of 7.07% from the beginning of the month.

Analysis review

After New Year's Day, the downstream terminal market of EA gradually entered the off-season, the overall industry sales were not smooth, the industry's trading was weak, the overall operation of EA production enterprises was stable, the inventory was accumulated high, and the enterprises were forced to lower prices to sell. As of the 12th, EA in East China was about 6,350-6,450 RMB/ton, in North China was about 6,350-6,450 RMB/ton, and in South China, EA was about 6,950-7,050 RMB/ton.

In terms of raw materials, enterprises in the acetic acid market started steadily and the market supply was abundant. However, the overall demand in the downstream market was poor, coupled with the rebound of the epidemic in Hebei, the industry was cautious in purchasing, the trading was weak, and there was a strong bearish attitude. The price of raw material corn in the ethyl alcohol market continued to remain high. Corn ethyl alcohol continued to remain low starting rate under cost pressure. Large plants would not be shut down in winter. Orders would be basically shipped in the short term, and prices would remain stable. It is expected that in the short term, the domestic ethyl alcohol market will be focused on consolidation. As of the 12th, ethyl alcohol in East China was around 7,075 RMB/ton.

Market outlook

The EA analyst of SunSirs believes that the current situation of oversupply in the domestic EA market is increasingly apparent. In addition to the weak operation of the raw material acetic acid market, it is difficult to alleviate the negative factors in a short time. It is expected that the EA market will operate weakly in the near future.

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