SunSirs: Acetic Acid Market Continued to Decline

Price trend

According to the SunSirs Commodity Market Analysis System, as of October 28, the average acetic acid market price was 2,480 RMB/ton, down 120 RMB/ton, or 4.62%, from 2,600 RMB/ton on October 21. Domestic acetic acid prices continued their downward trend in the late month. Acetic acid production capacity utilization increased slightly, while supply-side inventories increased, increasing pressure on companies to ship goods. Demand-side suppliers adopted a cautious approach, purchasing on a demand-driven basis. The market was generally subdued, with companies accumulating inventories and bearish market sentiment. This further shifted the focus of acetic acid transactions downward to encourage sales.

Analysis review

The price of raw material methanol fluctuated and fell this week. As of the 28th, the domestic market average price was 2,205 RMB/ton, a 2.65% drop from 2,265 RMB/ton on October 21st. Reduced downstream demand had led to low market enthusiasm. Methanol companies had ample inventory, resulting in significant spot pressure and a weak downward trend in the methanol market.

The downstream acetic anhydride market weakened, with the average ex-factory price falling from 4,177.50 RMB/ton to 4,107.50 RMB/ton from October 21 to 28, a decrease of 1.68%. The upstream acetic acid market continued to decline, creating a weak market sentiment for the acetic anhydride market. Downstream demand followed the downward trend, resulting in limited market trading. During the period, acetic anhydride prices followed the downward trend of raw materials.

Market outlook

The acetic acid analysts from SunSirs believe that domestic acetic acid companies maintained active shipments, the downstream was mainly following the rigid demand, the market consumption was insufficient, the acetic acid companies were under great pressure to ship, and there was a lack of positive factors in the market. It is expected that the acetic acid market will continue to consolidate weakly  in the later period, and attention will be paid to the market supply situation in the future.

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