SunSirs: Since August, the Price of Acetic Acid Had Continued to Rise, with a Monthly Increase of 16.85%

Price trend

According to the Commodity Market Analysis System of SunSirs, on August 16th, the average price of acetic acid in East China was 3,583.33 RMB/ton, an increase of 16.85% compared to the beginning price of 3,066.67 RMB/ton.

Analysis review

Since August, the domestic acetic acid market had shown a broad upward trend, with prices continuing to rise. The main reason was the tight domestic supply, which brought benefits to the supply, and the price of acetic acid continued to rise. At the beginning of the month, the devices of Yankuang Lunan and Jiangsu Sopu briefly stopped due to an unexpected malfunction. Downstream follow-up was good, and the quotation of acetic acid manufacturers increased. Afterwards, Tianjin Soda Plant reduced its operating load and reduced its capacity utilization rate. At the same time, the factory had low inventory and mainly executed long-term contracts. The supply of goods in the market was tight. Holders were hesitant to sell and raised the price significantly. In the later stage, as the bidding prices of the main factories in the northwest continued to rise, other regions also followed suit, As of August 16th, the price of acetic acid had increased by over 500 RMB/ton within the month.

The upstream raw material methanol market was volatile and weaker. As of August 16th, the average price in the domestic market was 2,331.67 RMB/ton, which was a 1.03% decrease compared to the price of 2,355.83 RMB/ton on August 1st. Cost side coal prices had fallen, weakening support; Downstream, since August, the shutdown of acetic acid plants had affected the decline in operating rates, demand was insufficient. Under the weak supply and demand, methanol prices fluctuated and fell.

The downstream acetic anhydride market continued to rise. As of August 16th, the factory price of acetic anhydride was 5,400.00 RMB/ton, an increase of 5.37% compared to the price of 5,125.00 RMB/ton on August 1st. The upstream acetic acid price increased significantly, and the upward momentum of acetic anhydride increased. The downstream demand for acetic anhydride was average, which to some extent limited the increase in acetic anhydride. Due to strong cost support, the price of acetic anhydride had increased.

Market outlook

According to acetic acid analysts from SunSirs, as of August 16th, domestic supply was tight, factory inventory was limited, and there was a strong intention for the trade market to be reluctant to sell. Coupled with the guidance of rising bidding prices in the northwest, and supported by positive supplier performance, it is expected that the acetic acid market may continue to rise in the future.

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