Price trend

According to the SunSirs commodity market analysis system, acetic acid prices saw a slight increase last week, with the average market price on the 29th reaching 2,420 RMB/ton, up 20 RMB/ton (0.83%) from 2,400 RMB/ton on August 25th. Domestic acetic acid prices remained strong, with prices rising across all regions. On the supply side, the shutdown of Shunda's plant in Henan had reduced acetic acid capacity utilization. Meanwhile, with the approaching peak season, companies were showing positive sentiment, leading to a primarily rising acetic acid price. Downstream demand was maintaining steady growth, the market sentiment remained positive, and companies were delivering strong shipments, leading to a consolidation and upward trend in acetic acid prices.

Analysis review

Upstream methanol prices have been weak and downward recently. As of the 29th, the average domestic market price was 2,241 RMB/ton, a 2.82% decrease from 2,306 RMB/ton on August 25th. Domestic methanol plants have resumed operations, increasing market supply. However, insufficient domestic market demand led to weak buying momentum at high prices, resulting in a decline in methanol trading volume.

The downstream acetic anhydride market saw a narrow upward trend. From August 25th to 29th, the average ex-factory price of acetic anhydride rose from 4,082.50 RMB/ton to 4,092.50 RMB/ton, a 0.24% increase. Strong upstream acetic acid prices, along with positive sentiment among industry players, increased the upward momentum for acetic anhydride. Downstream purchases were primarily based on demand, resulting in a favorable market trading atmosphere. Favorable cost factors supported the upward trend in acetic anhydride prices.

Market outlook

An acetic acid analyst from SunSirs believes that although the utilization rate of acetic acid production capacity decreased during the week, it was still at a relatively high level overall. The market inventory was sufficient and the supply side had limited support. At the same time, the downstream market was mostly on the sidelines, the market demand for replenishment was not high, and the fundamentals of the market were weak. It is expected that the acetic acid market will fluctuate and consolidate in the later period, and attention will be paid to the follow-up situation of the downstream in the future.

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