March Acetic Acid Market Strongly Rises in China

March 31st News

According to the commodity market analysis system, the price trend of acetic acid in March continued to rise. As of March 31, the average market price was 4,140.00 CNY/ton, an increase of 1,343.33 CNY/ton compared to the beginning of the month when the price was 2,796.67 CNY/ton. The price increase for the month was 48.03%.

In March, the acetic acid market in China showed a strong upward trend, with acetic acid prices continuously rising. The price of methanol, a raw material, remained high due to geopolitical conflicts, providing strong cost support for acetic acid prices, leading to a significant increase in the acetic acid market. On the supply side, some acetic acid production facilities were not operating at full capacity, resulting in a low operating rate and relatively low inventory levels, with manufacturers showing a strong intention to raise prices. In terms of downstream demand, the prices of products such as acetanilide and ethyl acetate kept increasing, providing robust support for acetic acid. Under the influence of multiple favorable factors, acetic acid prices surged strongly within the month.

The downstream acetic anhydride market in China operated strongly. From March 1 to March 31, the average ex-factory price of acetic anhydride increased from 4,540.00 CNY/ton to 6,162.50 CNY/ton, a price increase of 35.74%. The supply side of acetic anhydride remained stable, with companies facing little inventory pressure. Downstream demand was mainly met on a need basis. The strong price trend of the raw material, acetic acid, provided cost support, and the acetic anhydride prices were supported by the upstream market, leading to a significant price increase within the month.

In March, the raw material methanol market in China showed a strong upward trend. As of March 31, the average market price was 3,356.67 CNY/ton, an increase of 52.58% compared to the beginning of the month at 2,200.00 CNY/ton. Due to the impact of geopolitical conflicts, methanol imports decreased, leading to higher methanol prices in port markets, which in turn drove up the spot market prices. Additionally, some methanol companies continued to reduce their inventories, and there was a gradual recovery in downstream demand, along with the local olefins' external procurement needs, all of which supported the strong rise in methanol prices.

Future Market Outlook: Analysts believe that the current utilization rate of acetic acid facilities remains relatively low, and corporate inventories are comparatively low. With some units scheduled for maintenance in April, the supply side is expected to remain tight. Meanwhile, downstream market conditions remain strong, supported by robust demand. Therefore, it is anticipated that the acetic acid market will continue its upward trend in the short term. Specific attention should be paid to changes in market supply and demand.