Price trend

According to the commodity market analysis system of SunSirs, the price of acetic acid fell first and then rose in August. As of August 31, the price was 2,420 RMB/ton, an overall increase of 20 RMB/ton compared with the price of 2,400 RMB/ton at the beginning of the month, an increase of 0.83%.

Analysis review

Acetic acid prices fluctuated in August. At the beginning of the month, weak market trading sentiment, insufficient downstream demand, and accumulated inventories at companies pushed acetic acid prices downward to boost transactions. In the mid-term, acetic acid capacity utilization decreased, shipments improved in some regions, and inventory pressure eased, leading to rising prices. However, due to continued high market operating rates and varying market sentiment across regions, domestic acetic acid prices experienced a period of mixed fluctuations. At the end of the month, inventories generally declined, and market sentiment remained positive, keeping acetic acid prices firm.

The methanol market, a raw material, is experiencing a weak downward trend. As of August 31st, the average domestic market price was 2,241 RMB/ton, a 6.17% decrease from the price of 2,389 RMB/ton at the beginning of the month. In the first half of the month, methanol prices fluctuated within a range. Northwest olefins plants increased external procurement, coupled with ongoing maintenance at some plants and low inventories. Companies maintained prices and shipped goods, resulting in a high-volume market. By the middle and late part of the month, domestic methanol plants resumed operations, but support from the mainland market was somewhat insufficient. Downstream consumers were resistant to high prices, leading to a continued decline in methanol prices.

Market outlook

Analysts from SunSirs believe that the acetic acid market is consolidating to be stronger in the short term. The supply-side equipment is under maintenance, and the industry is optimistic. Downstream companies are entering the market mainly based on demand. In the long run, the traditional peak season approaching, and downstream demand is expected to be positive. At the same time, there are news of equipment maintenance in September. With the superposition of positive factors in the market, the acetic acid market is expected to be stronger in the later period. Specifically, attention should be paid to the follow-up situation of downstream companies.

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