Price trends:

According to the commodity market analysis system of SunSirs, as of February 27, the average market price of acetic acid was 2,830 RMB/ton, an increase of 50 RMB/ton or 1.80% compared with the price of 2,780 RMB/ton on February 23.

Market analysis

Domestic acetic acid prices rose slightly this week (February 23-27). During the Spring Festival holiday, the operating rate of acetic acid plants remained relatively stable, resulting in ample market supply. In some regions, reduced inventory during the holiday led to continued price increases after the holiday. Acetic acid prices in North and East China followed suit, supported by market sentiment. However, downstream demand recovered slowly, resulting in insufficient overall market support and limited price increases. The acetic acid market is expected to consolidate after the Spring Festival.

Recently, methanol prices initially rose and then fell. As of February 27th, the average domestic market price was 2,155 RMB/ton, a 2.09% decrease compared to 2,201 RMB/ton on February 23rd. Port methanol inventories increased, downstream demand was weak, and prices dropped significantly. The domestic methanol market lacked support, downstream demand was moderate, and companies had limited sales, leading to a weak consolidation of methanol prices and reduced cost pressure on acetic acid.

The downstream acetic anhydride market remained stable, with the average ex-factory price rising from 4,565 RMB/ton to 4,570 RMB/ton from February 23 to 27, an increase of 0.11%. On the supply side, acetic anhydride production capacity remained largely unchanged, while downstream buyers purchased only as needed. On the raw material side, acetic acid prices rose, providing strong cost support, and acetic anhydride prices followed suit with a slight increase.

Market Outlook:

According to analysts at SunSirs, there were temporarily no plans to adjust domestic acetic acid production facilities, and companies were adopting a wait-and-see approach. With downstream demand recovering after the holiday and market trading activity looking positive, the acetic acid market is expected to consolidate to be stronger in the short term. The market supply situation will be a key factor to watch in the future.

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