This Week's Acetic Acid Market Trend Weakens in China

May 15th, according to reports

According to Spotcom data, as of May 15th, the average market price of acetic acid in China was 3083.33 CNY/ton, a decrease of 186.67 CNY/ton compared to the price of 3270 CNY/ton on May 8th, with a price decrease of 5.71%.

Recently, the price of acetic acid in China has been continuously declining. Although there are more plant maintenance activities for acetic acid, leading to a reduction in supply, the weak demand downstream, coupled with high methanol prices, has put significant pressure on the cost side. Acetic acid producers are eager to sell, and the negotiation focus keeps shifting downward. The terminal market for acetic acid is experiencing mediocre transactions, mainly driven by rigid demand procurement. At the same time, the operating rates of downstream products are low, providing insufficient support from the demand side. The buyer's market still dominates, and the price of acetic acid continues to weaken and decline.

Recently, the methanol market in China has been fluctuating. As of May 15th, the average price in the Chinese market was 3,137 CNY/ton, an increase of 0.83% compared to the price of 3,111 CNY/ton on May 8th. Methanol supply in China is abundant, and the market is mainly weak, but with fewer arrivals of foreign vessels and a larger export volume, port methanol inventories have decreased significantly, providing some support to the spot market. Downstream demand follows as needed, and market prices are fluctuating, having a negative impact on acetic acid.

The downstream acetic anhydride market showed a strong trend. From May 8 to May 15, the average ex-factory price of acetic anhydride in China increased from 5,750 CNY/ton to 5,800 CNY/ton, a price increase of 0.87%. On the supply side, some acetic anhydride manufacturers were under maintenance, reducing market supply, and industry players had a strong expectation of price increases, leading to a general rise in acetic anhydride quotations. However, the decline in the price of raw material acetic acid somewhat limited the price increase of acetic anhydride, resulting in a slight upward adjustment in the acetic anhydride market.

For the future market forecast, acetic acid analysts believe that the current operating rate of acetic acid in China is not high, providing some support to the supply side. At the same time, the downstream operations are insufficient, leading to a poor performance in acetic acid demand. The market is currently experiencing a balance between supply and demand. It is expected that the acetic acid market will fluctuate and consolidate in the short term. Future attention should be paid to the market supply situation.