Market Analysis - Monthly Report - October, 2020 - Triacetin

What's hot and trending this month

1) Affected by tight supply, raw materials continue to rise in crude.

2) Raw methanol went up in the month, with strong cost support, and acetic acid price in Asia went up as a whole in October.

This month's market summary

Europe countries, due to the secondary outbreak, biodiesel demand, combined with the crude oil futures slumped recently, biodiesel fuel economy, low yield, as a by-product of crude glycerin supply tension is also difficult for a while, and the foreign offer on the high side, and providers of crude glycerine prices are still rising expectations. With the continuous rise of raw materials, the cost pressure of domestic factories continues to increase, which continues to support the domestic labor and welfare market.

The Asian acetic acid market was strong in October. On the one hand, due to the coming of a series of festivals in India in the later period, the demand from downstream is expected to increase, and cargo trading is active in November. On the other hand, although the domestic acetic acid operation rate in China is as high as 90% or above, the local downstream demand performance is stable, so there is no inventory pressure in many acetic acid factories. Moreover, the raw material methanol goes higher within the month, and the cost side also supports strongly. The RMB continued to rise against the US dollar, leading to little willingness of Chinese businessmen to export. Supported by multiple positive factors, acetic acid prices in Asia rose overall in October.

Next month market forecast

Summary and views

In October, overhaul and load reduction of some production capacity led to short supply of goods in the market. However, in the period of adding raw material price rise, it caused panic mood of end users to some extent and led to high ordering. However, as the price went up at the end of the month, the factory received orders gradually leveled off, and the quotation went with the market. However, from the perspective of aftermarket, the high level of raw materials, and customers began to prepare the purchase plan for next year, the market hot degree is difficult to subside, it is expected that the later period will still be dominated by rising.