Introduction

The acetic acid market in China maintained a steady upward trend during the week of September 15-21, 2025, driven by supply constraints and robust downstream demand.

According to Sunsirs' commodity market analysis system, the average market price for acetic acid reached 2,600 CNY/ton by September 21, reflecting a 2.36% increase (60 CNY/ton) from 2,540 CNY/ton on September 15. This analysis reorganizes the key factors behind this rise, including supply and demand dynamics, raw material trends, and downstream market performance, while providing a forward-looking outlook based on Sunsirs' September 22 report and broader market insights.

Market Overview and Price Drivers

The acetic acid market's bullish performance was underpinned by a combination of reduced supply and heightened demand:

Supply Constraints: Several domestic production facilities underwent maintenance shutdowns, reducing acetic acid capacity utilization. This alleviated market supply pressure, as overall availability tightened.

Demand Surge: Downstream industries increased restocking activities, particularly in preparation for upcoming holidays. The positive market sentiment, coupled with active purchasing, led to improved transaction volumes and reduced inventory levels among producers.

Producer Sentiment: With favorable market conditions, manufacturers exhibited strong intentions to raise prices, further supporting the upward price trajectory.

The price movement is summarized below:

These factors created a supportive environment for price increases, with positive market signals amplifying producer confidence.

Raw Material Influence: Methanol Market Trends

The primary raw material for acetic acid, methanol, experienced a contrasting trend, declining slightly during the same period. Sunsirs data indicates that the domestic methanol price averaged 2,262 CNY/ton on September 21, down 1.44% from 2,295 CNY/ton on September 15. Methanol market dynamics include:

Port Inventory Pressure: Narrow inventory accumulation at ports continued to suppress methanol prices, with high stock levels exerting downward pressure.

Futures Market Weakness: A decline in methanol futures prices negatively impacted spot market sentiment.

Regional Variations: Despite the overall bearish trend, inland methanol prices rose due to stable demand from the olefins sector and pre-holiday restocking by downstream buyers, highlighting a bifurcated market performance.

The methanol price decline did not significantly hinder acetic acid's upward momentum, as supply-side constraints and downstream demand for acetic acid outweighed raw material cost pressures.

Downstream Market Performance: Acetic Anhydride

The downstream acetic anhydride market also showed strength, with prices rising from 4,117.50 CNY/ton on September 15 to 4,205.00 CNY/ton by September 21, a 2.13% increase. This uptick was driven by:

Upstream Support: The rising acetic acid prices created a bullish atmosphere for acetic anhydride, as cost pass-through effects took hold.

Demand Growth: Increased downstream restocking bolstered transaction activity, with manufacturers reporting smooth shipments.

Price Alignment: Acetic anhydride prices tracked the upward movement of acetic acid, maintaining market alignment.

This positive downstream performance reinforced the acetic acid market's strength, as demand from derivative products supported overall price stability.

Outlook and Recommendations

Looking ahead, the acetic acid market is poised for continued strength in the near term. Key factors supporting this outlook include:

Persistent Supply Constraints: Low capacity utilization and reduced inventories are expected to maintain tight supply conditions.

Robust Downstream Demand: High procurement activity, especially ahead of holidays, is likely to sustain market momentum.

Producer Confidence: Manufacturers' strong pricing intentions will continue to drive prices upward, provided demand remains firm.

Sunsirs analysts predict that acetic acid prices will maintain a bullish trend in the short term, potentially stabilizing in the 2,600-2,700 CNY/ton range. However, stakeholders should monitor supply-side developments, such as potential restarts of production facilities, which could ease tightness.

Recommendations:

Manufacturers: Capitalize on favorable market conditions by optimizing production schedules and managing inventory levels strategically.

Buyers: Accelerate pre-holiday restocking to lock in current prices, while staying alert to supply chain updates.

Investors: Consider opportunities in acetic acid and related chemical markets, but factor in methanol price volatility as a potential risk.

Conclusion

The acetic acid market in China demonstrated resilience in the week of September 15-21, 2025, with a 2.36% price increase driven by supply reductions and strong downstream demand. Despite a slight decline in methanol prices, the bullish sentiment in acetic acid and its derivatives, such as acetic anhydride, underscores robust market fundamentals. With holiday-driven demand and constrained supply on the horizon, the market is likely to remain firm, though close attention to supply dynamics will be critical. This analysis draws from Sunsirs' September 22 report, offering a clear perspective on current trends and future expectations.

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