Price trend

According to data from SunSirs, acetic acid prices declined in May. As of May 31, the average market price stood at 3,040 RMB/ton—a decrease of 153.33 RMB/ton compared to the price of 3,193.33 RMB/ton at the beginning of the month—marking a monthly decline of 4.80%.

Market analysis

In May, the acetic acid market continued its weak performance, with prices trending downward amidst fluctuations. In terms of supply, numerous acetic acid production facilities underwent concentrated maintenance, causing operating rates to hover around 77%; consequently, market supply contracted. However, demand remained persistently sluggish, and transaction volumes in the end-user market were lackluster. Downstream buyers limited their acetic acid purchases primarily to immediate necessities, resulting in poor sales performance for holders. Concurrently, prices for the raw material—methanol—experienced fluctuations, providing only moderate cost-side support. Throughout the month, the acetic acid market remained constrained by weak demand, causing the overall price level to continue its downward drift.

The downstream acetic anhydride market experienced an initial rise followed by a decline; from May 1st to May 31st, the average ex-factory price of acetic anhydride fell from 5,555 yuan/ton to 5,450 yuan/ton, representing a decrease of 1.89%. During the first half of May, bolstered by cost support, market sentiment strongly favored price increases, driving acetic anhydride prices upward. However, in the latter half of the month, acetic acid prices remained at low levels—thereby weakening cost support—while downstream buyers exhibited resistance to high-priced supplies; consequently, market participants adopted a bearish outlook, and acetic anhydride prices underwent a downward correction.

In May, the market for raw material methanol experienced a volatile downward trend. As of May 31, the average market price stood at 3,093 RMB/ton—a decline of 6.13% compared to the price of 3,295 RMB/ton recorded at the beginning of the month. Within the domestic methanol market, supply conditions eased as production facilities undergoing maintenance gradually resumed operations; meanwhile, downstream operating rates remained low, resulting in generally weak overall demand. Amidst this interplay between supply and demand, methanol prices trended downward. Regarding port operations, methanol imports faced constraints due to geopolitical conflicts; this situation provided some support to the inland market, allowing methanol prices to remain at relatively elevated levels.

Market Outlook:

Analysts at SunSirs believe that downstream participants currently show limited enthusiasm for entering the acetic acid market, and demand remains sluggish. Consequently, market prices are trending weakly. As maintenance shutdowns conclude and production units gradually resume operations, market supply is expected to increase, placing greater inventory pressure on manufacturers. Given that downstream purchasing is currently driven primarily by immediate, essential needs—and industry participants lack confidence in future market prospects—it is anticipated that acetic acid prices will continue to undergo a weak, consolidative trend throughout June. Market participants should closely monitor specific shifts in supply and demand dynamics.

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