Market Analysis - Monthly Report - November, 2020 - Triacetin

What's hot and trending this month

1) The crude glycerin supply is tight, the price remains high, the downstream will be determined as needed, and the overall transaction condition is fair.

2) Under the high construction, the acetic acid price and profit rose significantly, while methanol increased significantly, providing good cost.

This month's market summary

Glycerol: the start and output of biodiesel are still low, the supply of crude glycerol is tight, the cost support is stable and strong, subject to the rapidly rising cost pressure, the domestic glycerol market continues to rise steadily. The domestic glycerin market goes up steadily, the downstream buys goes up rather than down, as required, the overall transaction condition is fair, which plays a certain supporting role for glycerin.

Acetic acid: In November, there was an occasional device fault shutdown, and it was quickly restarted. The average operating rate of acetic acid is still as high as 90%. But such a high start, the domestic acetic acid market is accelerating upward, mainly due to the strong domestic demand. The main downstream PTA at more than 80 percent of the operating rate, although the start of ethyl acetate declined significantly, but other downstream ethylene acetate and chloroacetic acid and other maintain a high start, domestic demand is strong, the overall supply of acetic acid slightly tense, promoting the rapid rise of acetic acid in the month. By the end of this month, compared with the end of October, Jiangsu region acetic acid increase as high as 35%, corporate profits rose 230%.

Next month market forecast

Summary and views

In November, the high cost of raw materials led to the passive expansion of triglyceride factory, the passive implementation of low price orders in the early stage, the profitability worrying, and even in the middle of the month there was once a state of money out of stock. The advance purchase of foreign customers, the rigid demand of domestic customers, the continuous rise of upstream raw materials, the continuous downturn of crude oil, multi-dimensional pressure enterprise living space. December as a whole is expected to continue to move strongly higher.