Price trend

According to data from the SunSirs spot market platform, the average market price of acetic acid stood at 3,056.67 RMB/ton as of June 25; compared to the price of 3,020 RMB/ton on June 18, this represents an increase of 36.67 RMB/ton, or 1.21%.

Market analysis

Domestic acetic acid prices have recently edged upward within a narrow range. While falling methanol prices have eased production costs—exerting some downward pressure on the market—supply-side factors have provided support: operating rates remain low, long-term contract orders are being fulfilled as the month-end approaches, and overall inventory pressure is minimal, leading to a generally firm market sentiment. Despite limited trading activity in end-user markets and downstream buyers purchasing strictly on an as-needed basis, the interplay between supply and demand fundamentals drove a slight rise in acetic acid prices over the week.

The market for the raw material methanol has recently been trending downward. As of June 25, the average domestic market price stood at 2,713 RMB/ton, marking a 6.96% decline from the 2,916 RMB/ton recorded on June 18. Expectations of increased supply at ports have dampened market sentiment and pushed price levels lower. Meanwhile, domestic methanol demand has entered the traditional off-season; buying interest remains low and trading activity is sluggish, prompting producers to offer price concessions to move inventory, resulting in a significant drop in prices over the week.

The market for acetic anhydride saw a weak, consolidating trend; between June 18 and June 25, the average ex-factory price fell from 5,330 RMB/ton to 5,312.50 RMB/ton, a decline of 0.33%. On the supply side, production remained stable while spot availability increased; however, downstream demand was insufficient, and trading activity was lackluster. With market fundamentals characterized by oversupply and bearish sentiment among industry players, acetic anhydride prices edged down slightly during the week.

Market Outlook

Analysts at SunSirs believe that the current operating rate for acetic acid is low, and with some enterprises planning maintenance in July, market sentiment remains positive. However, as downstream product markets are sluggish and demand support is moderate, the potential for a rise in acetic acid prices is limited. In the short term, the market is expected to undergo a period of consolidation and wait-and-see activity; specific attention should be paid to market supply and the pace of downstream buying.

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