This Week's Acetic Acid Market Shows Weakness and Decline (2.1-2.6)

February 6th, according to news,

According to the commodity market analysis system, as of February 6, the average market price of acetic acid in China was 2753.33 CNY/ton, a decrease of 76.67 CNY/ton compared to the price of 2830.00 CNY/ton on February 1, representing a price decrease of 2.71%.

This week (2.1-2.6), the price of acetic acid in China continued to decline. On the supply side, the capacity utilization rate of acetic acid fluctuated slightly, with companies showing an increased intention to ship goods. However, the enthusiasm for pre-holiday stockpiling by downstream buyers was low, and purchases were made according to demand. The market trading atmosphere was poor, and in order to promote sales, the quotations for acetic acid generally decreased, leading to a weak downward adjustment in the acetic acid market during the week.

Recent methanol raw material prices have been weak and fluctuating. As of February 6, the average price in the Chinese market was 2,223 CNY/ton, a decrease of 1.85% compared to the price of 2,265 CNY/ton on February 1. Port methanol market inventories are high, and downstream purchases are moderate, leading to a downward shift in price levels, which has weakened the spot market. The Chinese methanol market is experiencing poor trading, with limited new orders, weak supply and demand, declining methanol prices, and reduced cost pressure on acetic acid.

The downstream acetic anhydride market has seen a slight downward adjustment, with the average factory price from February 1 to 6 decreasing from 4590 CNY/ton to 4565 CNY/ton, a price decrease of 0.51%. The operating rate of acetic anhydride production in China is not high, and downstream buyers are mainly purchasing according to their needs. Companies are adopting a wait-and-see attitude. The weakening of raw material acetic acid prices has a negative impact on the cost side, leading to a weaker trend in acetic anhydride prices under the influence of the upstream market.

Looking ahead, acetic acid analysts believe that the utilization rate of China’s acetic acid facilities is unlikely to fluctuate significantly before the holiday. Enterprises will maintain their current shipment pace, while downstream demand for stockpiling is nearing its end, resulting in a relatively subdued trading atmosphere in the market. It is expected that acetic acid prices will stabilize in the near term. Going forward, market attention should be focused on supply conditions.