Price trend

According to the SunSirs commodity market analysis system, acetic acid prices have recently seen a slight increase. On the 19th, the average market price was 2,400 RMB/ton, up 30 RMB/ton from 2,370 RMB/ton on August 11th, a 1.27% increase. Since mid-August, domestic acetic acid prices have been weak, primarily due to high on-site capacity utilization and high market supply. Downstream demand has been subdued, with low enthusiasm for market entry and limited support from demand. This has led to a stalemate in market supply and demand, with prices remaining low in most regions. On the 19th, suppliers announced that manufacturers in central China were shutting down their plants, leading to a significant increase in factory quotes and a corresponding rise in prices in other regions.

Analysis review

In mid-August, upstream methanol prices weakened. As of August 19th, the average domestic market price was 2,301.67 RMB/ton, a 3.39% decrease from 2,382.50 RMB/ton on August 11th. Port inventories continued to accumulate, leading to bearish sentiment among industry players. Spot methanol demand remained weak, and downstream demand for high prices was sluggish. The market trading atmosphere was subdued, and the methanol market's center continued to decline.

The downstream acetic anhydride market saw a slight decline. From August 11th to 19th, the average ex-factory price of acetic anhydride dropped by 0.24%, from 4,092.50 RMB/ton to 4,082.50 RMB/ton. Weak trading sentiment in the upstream acetic acid market provided insufficient support for acetic anhydride. Downstream purchasing was based on demand, resulting in a subdued market environment and a stalemate in supply and demand. This led to slight price fluctuations within the cycle.

Future outlook:

An acetic acid analyst of SunSirs believes that domestic acetic acid production capacity utilization remained high, and market inventories were ample. While news from suppliers had boosted market sentiment, downstream demand was weak, and companies were shipping only limited units. The market's oversupply will persist in the short term. Acetic acid prices are expected to weaken and consolidate in the coming period, with downstream market activity closely watched.

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