SunSirs: In June, the Domestic Acetic Acid Price Market Showed a Weak Downward Trend

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of acetic acid continued to decline in June. As of June 30th, the price was 2,520 RMB/ton, a decrease of 180 RMB/ton compared to the price of 2,700 RMB/ton at the beginning of the month, a decrease of 6.67% during the month.

Analysis review

As of the end of the month, the market price details of acetic acid in various regions of China in June were as follows:

In June, the price of acetic acid fell weakly, and the utilization rate of acetic acid production capacity on the supply side increased. The market supply was sufficient, and enterprises had a strong intention to ship. In terms of demand, the downstream market was average, with limited consumption of acetic acid and average market transactions. Acetic acid enterprises were hindered from shipping, and at the same time, raw material prices rose, acetic acid profits decreased, and enterprise inventories were under pressure. The center of acetic acid transactions continued to shift downwards.

The methanol market on the raw material side was experiencing a strong upward trend. As of June 30th, the average price in the domestic market was 2,805 RMB/ton, an overall increase of 24.67% compared to the beginning of the month price of 2,250 RMB/ton. Due to the impact of geopolitical conflicts overseas, the methanol production rate decreased, port arrivals decreased, and the futures market surged significantly. The spot market had followed suit and risen. The port market had strong support during the month, and the domestic methanol market had risen at a high level.

Market outlook

According to analysts from SunSirs, the acetic acid market was temporarily operating in a differentiated manner, with poor shipments in the North China region and lower enterprise quotations. However, shipments in the East and South China regions were still acceptable, with firm enterprise quotations as the main factor. Downstream markets were following up as needed, with limited market trading and supply and demand competition. It is expected that the acetic acid market will consolidate weakly in July, and specific attention will be paid to downstream follow-up situations.

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