SunSirs: Domestic Acetic Acid Prices Continued to Rise in September

Price trend

According to the commodity market analysis system of SunSirs, the price of acetic acid continued to rise in September. As of September 30, the price was 2,640 RMB/ton, an increase of 210 RMB/ton compared with the price of 2,430 RMB/ton at the beginning of the month, an increase of 8.64%.

Analysis review

Acetic acid prices remained strong in September. Capacity utilization continued to decrease, while market inventories remained low. Meanwhile, increased downstream demand during the traditional peak season led to smooth shipments and declining factory inventories. Market fundamentals favored low supply and high demand, and industry participants maintained their support for price increases, leading to a continuous upward adjustment of acetic acid prices throughout the month.

The market for raw material methanol was fluctuating and weaker. As of September 30th, the average domestic market price was 2,237 RMB/ton, a 0.71% decrease from 2,253 RMB/ton at the beginning of the month. Domestic methanol imports remained high, and inventory pressure persised. The domestic market was fluctuating due to supply, demand, and cost factors. Continued pressure on the supply side had led to accumulated inventories at companies. Pre-holiday inventory buildup, coupled with low port prices, has forced downstream companies to purchase only on demand, leading to another decline in the monthly low-end methanol market.

Market outlook

Analysts from SunSirs believe that the recent acetic acid market had been strong and stable, the supply-side capacity utilization rate was not high, the inventory pressure on enterprises was not great, the downstream had actively entered the market, the trading atmosphere was good, the downstream had replenished stocks after the holiday, and market expectations continue to be optimistic. It is expected that the acetic acid market will run at a high level in the later period, and specific attention will be paid to the downstream follow-up situation.

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