According to data from SunSirs, as of August 31, the average production price of ethyl acetate stood at 5,833.33 RMB/ton, down 26.67 RMB/ton from the 5,860 RMB/ton recorded at the beginning of the month—a total decline of 0.46%. With expectations of increased supply and limited downstream demand, market sentiment remains conflicted, resulting in a weak performance for ethyl acetate.

Market Analysis:

In August, the ethyl acetate market fluctuated within a range, trending generally weak. On the supply side, previously idled units resumed production en masse, leading to higher operating rates; amidst prevailing bearish sentiment, prices declined. Downstream, demand remained limited to essential needs due to the off-season, resulting in sluggish trading activity. On the raw material side, rising acetic acid prices exerted significant cost pressure, causing the market's central trading price for ethyl acetate to drift lower throughout the month.

According to data from the SunSirs spot market platform, the price of acetic acid rose from 3,070 RMB/ton to 3,223.33 RMB/ton in July, marking an overall increase of 4.99%. On the supply side, concentrated maintenance at acetic acid production facilities bolstered market sentiment and supported prices; with downstream buyers purchasing on an as-needed basis and demand remaining steady, the market maintained a strong upward trend. Meanwhile, rising raw material costs squeezed profit margins for ethyl acetate, causing the focus of price negotiations to shift downward amidst inventory pressure.

Market outlook

Looking ahead, the market faces significant inventory pressure for ethyl acetate, compounded by insufficient support from downstream demand and bearish market sentiment. Prices are expected to remain weak and consolidate within a narrow range next month; key factors to monitor include changes in supplier plant operations and the extent of downstream follow-through.

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