SunSirs: The Domestic Market for EA Weakened This Week

https://www.chemnet.com   Feb 26,2024 SunSirs

After the holiday, the domestic EA market had shown weak performance, with prices fluctuating and falling. As of Friday, the cumulative decrease in EA was around 100 RMB/ton. The main reason was the weak performance of supply and demand.

Analysis review

Since the beginning of this week, the EA market had remained weak. On the one hand, the cost side had shown pressure, and the price of acetic acid had continued to decline after the holiday, with a drop of up to 4.55% this week. More importantly, downstream ethyl esters had been affected by weak supply and demand, leading to stable production by manufacturers and an increase in supply after the holiday; However, due to weak demand and negative pressure from both supply and demand, the price of ethyl ester had not remained stable. This week, Shandong's main large factories bided for shipments, and the bidding starting price had been repeatedly lowered, with a magnitude exceeding 100 RMB/ton, suppressing market confidence.

Market outlook

It is expected that the EA market will remain volatile and weaker in the short term. It is recommended to pay attention to the price execution of raw material acetic acid and EA manufacturers. As of February 23rd, the mainstream transaction price in the market was between 6,650 and 6,750 RMB/ton.

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