Price trend

According to data from SunSirs, as of July 26, the average market price of acetic acid stood at 3,223.33 RMB/ton; compared to the price of 3,230 RMB/ton on July 20, this represents a decrease of 6.67 RMB/ton, or 0.21%.

Market Analysis

Domestic acetic acid prices underwent a weak consolidation last week. The price of the feedstock methanol trended downward with fluctuations, weakening cost support for acetic acid and failing to drive up market prices. Regarding supply, although the overall operating rate remained low, the restart of previously idled units led to expectations of increased supply, dampening market sentiment. Meanwhile, trading activity in end-user markets was lackluster and downstream buying interest remained poor; with weak demand-side support and conflicting market sentiments, acetic acid prices drifted lower throughout the week.

Last week, the methanol market experienced fluctuations with a downward bias. As of July 26, the domestic market average price stood at 2,753 RMB/ton, marking a 1.33% decline from the 2,790 RMB/ton recorded on July 20. While downstream demand provided some support, the spot market trended weaker; increased import arrivals and significant pressure to move inventory weighed on coastal methanol prices, limiting gains and resulting in an overall price decline for the week.

The market for downstream acetic anhydride trended downward; between July 20 and 26, the average ex-factory price fell from 5,362.50 RMB/ton to 5,237.50 RMB/ton, a decline of 2.33%. While production facilities operated steadily and market supply increased, downstream purchasing remained limited, with trading driven primarily by immediate needs. Coupled with softening cost support and bearish market sentiment, acetic anhydride prices underwent a downward adjustment during the week.

Market Outlook:

Analysts at SunSirs believe that while downstream demand for acetic acid remains sluggish and market sentiment is subdued, the overall operating rate of producers is low, providing some support on the supply side. Consequently, acetic acid prices are expected to see limited downside in the short term, with the market likely to consolidate within a narrow range; attention should be focused on supply levels and the extent of downstream follow-through.

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