April Acetic Acid Market Slides Sharply

April 29th, news:

According to Spotcom data, the price of acetic acid fell in April. As of April 29, the market average price was 3,150 CNY/ton, a decrease of 1,380 CNY/ton from the beginning of the month when the price was 4,530 CNY/ton, representing a 30.46% price decrease for the month.

In April, the acetic acid market experienced a significant decline, with prices peaking and then falling. Prior to the Qingming Festival, under strong support from favorable factors, acetic acid prices continued to rise, following the trend from March. In the week after the festival, downstream buyers took a cautious approach, making only necessary purchases, and the market's wait-and-see sentiment increased, leading to stable acetic acid quotations. By mid-to-late April, prices in the downstream sectors of the acetic acid industry chain began to fall, and the attitude of downstream players became clearer. The market showed low interest in high-priced supplies, resulting in a weak trading atmosphere. Acetic acid producers saw their inventories accumulate, with demand taking the dominant position, exerting downward pressure on the acetic acid market, causing prices to continue to drop.

The downstream acetic anhydride market in China showed a weak downward trend. From April 1st to 29th, the average ex-factory price of acetic anhydride fell from 6,712.50 CNY/ton to 5,530 CNY/ton, a decrease of 17.62%. The operation rate of acetic anhydride remained stable, with ample supply from enterprises. However, downstream buyers were resistant to high prices, resulting in low purchasing enthusiasm. The price of raw material acetic acid also declined, leading to weak cost support. Overall, the fundamental factors for acetic anhydride were negative, causing the price to weaken during the month.

In April, the methanol raw material market in China showed a strong fluctuation. As of April 29, the average market price was 3,292 CNY per ton, an increase of 5.51% compared to the beginning of the month's price of 3,120 CNY per ton. Affected by geopolitical conflicts, the supply of imported methanol was tight, and port methanol prices remained firm, supporting the strong operation of spot market prices. At the same time, domestic methanol enterprises faced issues such as inventory reduction and weak downstream demand, which put some pressure on methanol prices. Overall, the methanol market mainly operated with fluctuations during the month.

Future Market Outlook: Analysts believe that currently, acetic acid producers are actively clearing inventories ahead of the holiday period, while downstream buyers are mainly following demand. In some regions, stockpiling demand has increased somewhat. Market trading activity remains mixed, and the acetic acid market is expected to remain stable ahead of the holiday. In May, several acetic acid plants are scheduled for maintenance, which will lead to a slight reduction in market supply. Downstream markets are likely to continue responding to demand on a case-by-case basis. We anticipate that the acetic acid market in May will show a narrow range of upward trends, with close attention paid to changes in market supply and demand.