SunSirs: The Acetic Acid Market Was Weakly Downward Last Week (February 1-6)

Price trend

According to SunSirs' commodity price analysis system, as of February 6th, the average market price of acetic acid was 2,753.33 RMB/ton, a decrease of 76.67 RMB/ton compared to the price of 2,830.00 RMB/ton on February 1st, representing a drop of 2.71%.

Market Analysis

Last week (February 1-6), domestic acetic acid prices continued to fall. On the supply side, acetic acid capacity utilization fluctuated within a narrow range, and companies showed increased willingness to sell. Downstream buyers showed little enthusiasm for stocking up before the holiday, and purchases were made only as needed. The market trading atmosphere was weak, and holders generally lowered their acetic acid prices to encourage sales, resulting in a weak downward trend in the acetic acid market during the week.

Recently, the price of methanol, a raw material, was fluctuating weakly. As of February 6th, the average price in the domestic market was 2,223 RMB/ton, a decrease of 1.85% compared to the price of 2,265 RMB/ton on February 1st. High inventory levels in the port methanol market and weak downstream demand led to a downward shift in prices, contributing to a weaker spot market. Domestic methanol market activity was sluggish, with limited new orders and weak supply and demand dynamics, resulting in a decline in methanol prices and reduced cost pressure on acetic acid.

The downstream acetic anhydride market experienced a slight decline. From February 1st to 6th, the average ex-factory price of acetic anhydride decreased from 4,590 RMB/ton to 4,565 RMB/ton, a drop of 0.51%. Supply-side acetic anhydride production rates were not high, and downstream buyers purchased mainly on a need-to-basis. Companies adopted a wait-and-see attitude, and the weakening price of acetic acid, a raw material, negatively impacted costs. Driven by these upstream factors, the price of acetic anhydride trended downwards.

Market outlook

According to SunSirs' acetic acid analyst, the operating rate of domestic acetic acid plants is expected to remain relatively stable before the holiday. Companies were maintaining their shipping pace, and downstream buyers were nearing the end of their stockpiling efforts. Market trading activity was subdued. It is expected that the acetic acid market will stabilize in the near future, and future market supply conditions should be monitored.

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