SunSirs: The Acetic Acid Market Was Experiencing a Strong Upward Trend

According to data from SunSirs, as of August 31, the average market price of acetic acid stood at 3,310 RMB/ton; compared to the price of 3,170 RMB/ton on August 24, this represents an increase of 140 RMB/ton, or 4.42%.

The domestic acetic acid market has recently seen a strong upward trend. Prices for the feedstock methanol have been fluctuating at high levels, strengthening cost support and driving up acetic acid prices. On the supply side, inventories at acetic acid producers are currently low and market supply is tight, fostering a strong inclination among sellers to maintain high prices; additionally, the postponement of maintenance at acetic acid plants in Henan has further bolstered bullish sentiment among manufacturers. Regarding demand, the market is driven primarily by essential domestic consumption alongside robust export performance, providing solid overall support for acetic acid; driven by these multiple favorable factors, acetic acid prices have shifted upward to higher levels.

The market for the raw material methanol has recently trended upward amidst fluctuations. As of August 31, the average domestic market price stood at 3,096 RMB/ton, marking a 3.79% increase from the 2,983 RMB/ton recorded on August 24. Methanol prices have remained strong, driven by a combination of factors: concentrated maintenance at production facilities has tightened domestic spot supplies, while import arrival volumes have been low, resulting in overall tight market inventories.

The market for downstream acetic anhydride saw a strong upward trend; between August 24 and August 31, the average ex-factory price rose from 5,395 RMB/ton to 5,565 RMB/ton, an increase of 3.15%. News of maintenance at acetic anhydride plants in Shandong led to expectations of reduced market supply, while rising prices for the raw material acetic acid further drove up the cost of acetic anhydride. Coupled with stable downstream demand and strong bullish market sentiment, prices for acetic anhydride were raised continuously throughout the week.

Market Outlook:

Currently, acetic acid inventories remain low, and producers are strongly inclined to maintain price levels. Favorable conditions in downstream export markets continue to support prices. With the traditional peak season approaching, acetic acid prices are expected to remain high in the short term; market attention should focus on supply dynamics and the extent of downstream demand.

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