SunSirs: The Acetic Acid Market Continued Its Upward Trend

Price trend:

According to SunSirs commodity price analysis system, as of December 24th, the average market price of acetic acid was 2,720 RMB/ton, an increase of 60 RMB/ton compared to the price of 2,660 RMB/ton on December 17th, representing a 2.26% increase.

Market Analysis

Recently (December 17-24), the domestic acetic acid market has risen again. On the supply side, the recovery of maintenance-affected facilities was slow, leading to low operating rates for acetic acid production. Factory inventories were low, and acetic acid prices remained firm at high levels. Downstream demand increased, market sentiment was positive, and some companies had seen their inventories decrease, resulting in a continued upward trend in acetic acid prices.

Recently, the price of methanol, a raw material, fluctuated but trended upwards. As of the 24th, the average price in the domestic market was 2,160 RMB/ton, a 1.60% increase compared to the price of 2,126 RMB/ton on December 17th. Tight supply in port markets supported higher spot prices, while domestic methanol prices were also supported by higher winter transportation costs. Companies maintained firm pricing, and downstream buyers purchased according to their needs, resulting in a fluctuating methanol market.

The downstream acetic anhydride market showed a strong upward trend. From December 17th to 24th, the average ex-factory price of acetic anhydride decreased from 4170 RMB/ton to 4162.50 RMB/ton, a decrease of 0.18%. The upstream acetic acid market was strong, leading to continuously increasing costs for acetic anhydride. Downstream demand showed no significant fluctuations, and companies experienced weak sales. Market sentiment remained stagnant, resulting in a slight decrease in acetic anhydride prices during the period.

Market Outlook

According to SunSirs' acetic acid analyst, the domestic acetic acid market was experiencing numerous plant maintenance shutdowns, resulting in limited supply pressure. Downstream demand remained stable, and companies were experiencing good sales. With favorable fundamentals continuing, the acetic acid market is expected to maintain its stronger performance in the near future.  Future market developments will depend on the supply situation.

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