Mid-January Acetic Acid Market Trends Show a Strong Uptrend

January 20th, according to news:

According to the commodity market analysis system, as of January 20th, the average price of acetic acid in the Chinese market was 2903.33 CNY/ton, an increase of 96.66 CNY/ton compared to the price of 2806.67 CNY/ton on January 12th, with a price increase of 3.44%.

Recently (1.11-1.20), the price of acetic acid in China has continued to rise. On the supply side, the market supply remains tight, with slow recovery of maintenance facilities and operating rates maintained at a medium-to-high level. In terms of downstream demand, purchases are following actual needs, with stable market transactions. Factory inventories have decreased, and manufacturers have a strong intention to maintain prices, leading to a robust upward trend in the acetic acid market.

Recent methanol feedstock prices have been weak and declining. As of the 20th, the average price in the Chinese market was 2,205 CNY/ton, a decrease of 2.65% compared to the price of 2,265 CNY/ton on January 11th. The high inventory of methanol in the port market has put pressure on the spot price. Methanol production rates in China are high, and companies face significant inventory pressure. Demand from downstream sectors is weak, leading to a generally weak performance in the methanol market. The cost side provides little support for acetic acid.

The downstream acetic anhydride market in China is operating strongly. From January 11 to 20, the average ex-factory price of acetic anhydride increased from 4,307.50 CNY/ton to 4,622.50 CNY/ton, a price increase of 7.31%. The supply-side production rate of acetic anhydride is low, with strong support from upstream acetic acid. Downstream demand and production are stable, and market favorable factors are strong. Enterprises have a bullish mentality, leading to continuous increases in the price of acetic anhydride during this period.

Looking ahead, acetic acid analysts believe that China’s acetic acid facility utilization rate remains relatively low, putting little pressure on corporate inventories. This favorable supply situation, coupled with modest fluctuations in downstream demand, provides strong support for acetic acid prices. Overall, the market fundamentals remain positive, and it is expected that acetic acid prices will continue to run at relatively high levels in the coming period. Market attention should now be focused on the supply situation.