SunSirs: The Favorable Factors of the Supply Side Continued, and the Acetic Acid Market Remained Strong at a High Level This Week

https://www.chemnet.com   Jul 23,2024 SunSirs

Price trend

According to the Commodity Market Analysis System of SunSirs, the price of acetic acid had risen this week. As of July 19th, the average market price of acetic acid was 3,350 RMB/ton, an increase of 100 RMB/ton compared to the price of 3,250 RMB/ton on July 12th, with an overall increase of 3.08%.

Analysis review

At the beginning of the week, the price of acetic acid rose, mainly due to the malfunction of the acetic acid plant in the early stage, the reduction of enterprise inventory, and the continuation of the positive sentiment in the market, leading to another upward trend in the market. Afterwards, as the faulty device resumed normal operation, the market supply increased, and downstream consumers consumed more inventory, the enthusiasm for entering the market weakened. However, the manufacturer's inventory was not under pressure at the moment, and overall production and sales were still acceptable. The stable quotation in the later part of the week was the main factor. In terms of traders, due to excessive stockpiling and weakened downstream demand, the price of acetic acid had been lowered, and the overall acetic acid market remained strong at a high level during the week.

The upstream raw material methanol market was weak and declining. As of July 19th, the average price in the domestic market was 2,500 RMB/ton, a decrease of 2.34% compared to the price of 2,560 RMB/ton on July 12th. The methanol supply side equipment had undergone extensive maintenance, resulting in a decrease in production capacity and interest rates. However, the downstream sector continued to be weak, and traders had sufficient supply of goods, with average receiving sentiment. Market trading was poor, and methanol spot prices had fallen from high levels.

The downstream acetic anhydride market was experiencing a strong upward trend. On July 19th, the average ex factory price of acetic anhydride was 5,567.50 RMB/ton, an increase of 2.16% compared to the price of 5,450.00 RMB/ton on July 12th. The upstream acetic acid market remained strong at a high level, and the cost support of acetic anhydride was favorable. The downstream of acetic anhydride followed suit according to demand, and the trading atmosphere in the market was still acceptable. The upstream market had driven the upward trend of acetic anhydride prices.

Market outlook

The acetic acid analyst from SunSirs believes that the main acetic acid factories in the market were temporarily operating normally, with an increase in market supply. Downstream demand was weakening, and market purchases were limited. There was a supply-demand game in the market, and some holders intended to lower prices to stimulate shipments. It is expected that the short-term acetic acid market will consolidate to be weaker, and downstream follow-up will be closely monitored in the future.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.

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