Recent market downturn in China's chloroacetic acid market

In July, China's chloroacetic acid market first rose and then fell, the overall atmosphere is more sluggish. At the beginning of the month, the downstream demand has improved, raw material prices continue to increase, the cost of chloroacetic acid support is increasing, manufacturers offer to improve prices. Since the middle of the month, although the price of liquid chlorine is still high, but the acetic acid market is loose, the price of chloroacetic acid then downward. In the second half of the month, due to the downstream pesticides, pharmaceutical intermediates and other industries operating load downward, China's demand for chloroacetic acid market decreased, and prices continued downward trend.

In August, China's Chloroacetic Acid market sentiment continues to be low, the transaction atmosphere is general. It is understood that acetic acid and liquid chlorine prices are depressed, the cost of chlorine Acetic acid market support weakened. Chloroacetic acid enterprises own a high operating load, while the downstream demand turns weak, leading to an increase in inventory, shipping pressure, resulting in a narrow range of lower prices, while the sluggish downstream demand has increased the difficulty of market recovery.

From the raw material side, in the early part of August, China's liquid chlorine market in local areas of the market continued to adjust downward, of which, North China's adequate supply of liquid chlorine, plus chlorine consumption device maintenance, prices down slightly; East China's ex-factory quotations by the Shandong market influence the center of gravity slightly to the downward shift; Southwest China's liquid chlorine downstream demand is strong, later plans to raise prices. South China, central China, liquid chlorine downstream demand is stable, the price adjustment is not large.

In mid-August, China's acetic acid market slowed down, mainly due to the pre-repair manufacturers have returned to normal operation, adequate market supply, the beginning of the month to carry out preliminary orders, leading to a gradual increase in the number of spot manufacturers inventory, cut prices to ship. Most enterprises are more active in spot purchases, driving the market traded prices up slightly. Although Shandong Yancoal acetic acid plant then resumed full-load production, but due to the recent overall smooth shipments, inventory pressure has been effectively relieved, prices were able to firm up in the post-rising level.