Price trend

According to the SunSirs’ Commodity Market Analysis System, acetic acid prices rose last week, reaching an average of 2,400 RMB/ton as of the 31st, a 50 RMB/ton increase (2.13%) from the 2,350 RMB/ton on July 28th. Domestic acetic acid market trends showed a differentiated trend, with prices rising in Shandong and declining in South China. On the supply side, acetic acid production capacity utilization rates were high, resulting in ample supply. On the demand side, downstream suppliers purchased on demand, resulting in varying shipments across different regions. Acetic acid companies adjusted their quotes based on their inventory levels, and overall market consumption was limited, leading to a wait-and-see outlook for the acetic acid market.

Analysis review

Upstream methanol prices initially rose before declining. As of the 31st, the domestic market average price was 2,393.33 RMB/ton, showing little fluctuation compared to the 2,392.50 RMB/ton on July 28th. At the end of the month, boosted by macroeconomic policies, port and spot methanol prices were relatively strong. However, weak downstream demand, a subdued market atmosphere, and limited on-site shipments led to another downward adjustment in the methanol market.

The downstream acetic anhydride market remained stable, with the average ex-factory price remaining at 4,092.50 RMB/ton from July 28 to 31. The upstream acetic acid market remained strong and consolidated, but the market purchasing sentiment was weak, providing limited support for acetic anhydride. Downstream market entry was mainly based on demand, and market trading remained stable, keeping acetic anhydride prices stable throughout the cycle.

Market outlook

An acetic acid analyst from SunSirs believes that the domestic acetic acid production capacity utilization rate was high, the market inventory was sufficient, companies had a clear intention to ship, downstream transactions were limited, and the enthusiasm for acetic acid purchases was not high. The market situation was oversupply, and the acetic acid market is expected to consolidate weakly in the short term. In the future, attention will be paid to the follow-up situation of the downstream.

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