SunSirs: The Acetic Acid Market Rose First and Then Fell in July

Price trend

According to the data from SunSirs, the price of acetic acid in July first rose and then fell. As of July 31, the average market price was 3,223.33 RMB/ton, an increase of 160 RMB/ton compared to the beginning of the month when the acetic acid price was 3,063.33 RMB/ton, with a 5.22% increase during the month.

Market analysis

The acetic acid market was generally strong in July. In the first half of the month, the on-site acetic acid plant underwent centralized maintenance, the market supply tightened, and enterprises showed a strong intention to rise, resulting in a continuous increase in acetic acid prices; In the second half of the month, with the restoration of some maintenance facilities, the expected supply of acetic acid will increase. At the same time, downstream purchasing enthusiasm is not high, and more follow-up is needed. The atmosphere in the venue has weakened, and the focus of acetic acid transactions has shifted downwards. However, due to the lack of significant improvement in acetic acid production rate, acetic acid in some areas will continue to operate at a high price.

The methanol market fluctuated within a range in July. As of July 31st, the average market price was 2,627 RMB/ton, an increase of 1.31% compared to the beginning of the month price of 2,593 RMB/ton. Driven by geopolitical conflicts and domestic equipment maintenance, the methanol market has a strong intention to rise, but downstream traditional consumption demand is not good during the off-season, and market mentality games limit methanol growth. The long-term support of raw material methanol for acetic acid is insufficient, and the cost benefits are limited.

Market Outlook:

SunSirs’ analysts believe that with the recovery of the acetic acid plant in the later stage, market supply expectations will increase, while downstream demand is unlikely to improve in the short term, and fundamental supply will weaken. It is expected that the acetic acid market will weaken and consolidate in August, and specific attention will be paid to the restart of the plant and downstream follow-up.

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