Recent Acetic Acid Market Prices Have Risen Significantly in China

March 31st News

According to the commodity market analysis system, as of March 31, the average market price of acetic acid in China was 4,140 CNY per ton, an increase of 663.33 CNY per ton compared to the price of 3,476.67 CNY per ton on March 25, representing a price increase of 19.08%.

Recently (March 25-31), the price of acetic acid in China has risen significantly. The raw material, methanol, has remained at a high level, providing continued cost support. On the supply side, the operating rate of acetic acid production has slightly decreased, and the inventory of enterprises is relatively low, leading to further increases in market prices. At the same time, the prices of downstream products in the industry chain have also shown a continuous and significant upward trend, strongly supporting the acetic acid market. The combination of these positive factors within the market has driven the continuous rise in acetic acid prices.

Recently, the methanol raw material market has been consolidating at high levels. As of March 31, the average price in the Chinese market was 3,356.67 CNY/ton, a 7.24% increase from the price of 3,130 CNY/ton on March 25. Affected by geopolitical conflicts, methanol imports have decreased, and futures market prices have risen. The spot market is supported by the reduction in port inventory and purchases by Chinese olefin companies, leading to a bullish sentiment among traders. The spot price has shifted upward, with the methanol market maintaining a high-level volatile trend. The increase in cost has added pressure on acetic acid.

Downstream acetic anhydride prices showed a strong upward trend, with the average ex-factory price in China increasing from 5,605.00 CNY/ton to 6,162.50 CNY/ton between March 25 and March 31, a price increase of 9.95%. The supply of acetic anhydride remained stable, while downstream demand was mainly based on necessity. The market trading atmosphere was acceptable. The robust price trend of raw material acetic acid provided significant cost support, driving the optimistic upward trend of acetic anhydride prices.

For the future market forecast, acetic acid analysts believe that Chinese acetic acid enterprises have low inventory levels, and manufacturers have a strong intention to maintain prices. The robust upward trend of upstream and downstream products is supportive for acetic acid, making the market fundamentals strong. It is expected that the acetic acid market will continue to operate at high levels in the short term. The focus in the future will be on the market supply situation.