SunSirs: The Acetic Acid Market Was Consolidating to Be Weaker

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of acetic acid remained stable last week. As of the 25th, the average market price of acetic acid was 2,350 RMB/ton, which was the same as the price of 2,350 RMB/ton on July 18th and a decrease of 5.62% compared to the beginning of the month. The domestic acetic acid market was weak and consolidating, with stable operation of acetic acid plants on the supply side and sufficient supply of goods in the market. There was a clear intention for enterprises to ship, but in terms of demand, the downstream market was flat, and the enthusiasm for entering the market was not high. Inventory accumulated in some areas, and the sentiment of industry players was bearish. Acetic acid prices had been adjusted downwards, and there was a game of supply and demand in the market. The acetic acid market was mainly weak.

Analysis review

The upstream methanol market fluctuated upwards. As of the 25th, the average price in the domestic market was 2,481 RMB/ton, an increase of 4.11% compared to the price of 2,383 RMB/ton on July 18th. Boosted by macro policies, the methanol market in ports had shown a stronger trend, providing support for the spot market. In addition, low inventory levels in production areas and the continued demand for external procurement of olefins due to equipment decoration led to an increase in domestic methanol market prices.

The downstream acetic anhydride market was operating weakly and steadily. On July 25th, the average ex factory price of acetic anhydride was 4,092.50 RMB/ton, which was the same as the price of 4,092.50 RMB/ton on July 18th. The upstream acetic acid market was weak and consolidating, with average cost support for acetic anhydride. Downstream purchases were made on demand, and the market trading atmosphere was weak. During the cycle, acetic anhydride prices remained stable and wait-and-see.

Market outlook

The acetic acid analyst from SunSirs believes that the utilization rate of domestic acetic acid production capacity remained high, and there was significant pressure on companies to ship. The downstream market was average, with average market transactions and an oversupply situation. It is expected that the acetic acid market will continue to operate weakly in the short term, and attention will be paid to downstream follow-up in the future.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.