Acetic Acid Market Trends Consolidate (May 18–May 24)

May 25th News

According to SpotCom data, as of May 24, the average market price of acetic acid in China was 3093.33 CNY/ton, an increase of 10 CNY/ton compared to the price of 3083.33 CNY/ton on May 18, with a price increase of 0.32%.

Recently, the acetic acid market in China has mainly been consolidating. The price of methanol, a raw material, remains at a high level compared to the same period, and the cost pressure on acetic acid still exists. On the supply side, the recovery of acetic acid production facilities is slow, with low inventory levels among enterprises, which provides some support to market sentiment, stabilizing acetic acid quotations. However, the end-market demand is weak, with moderate downstream transactions. Purchasing activities are driven by essential needs, and the overall market fundamentals are not favorable, leading to minor fluctuations in acetic acid prices within the week.

Recently, the methanol raw material market has been fluctuating downward. As of May 24, the average price in the Chinese market was 3,163 CNY/ton, a decrease of 1.77% compared to the price of 3,220 CNY/ton on May 18. The amount of methanol arriving at the ports is low, and inventory continues to decrease, leading to a stronger price trend; methanol plants in China are undergoing maintenance, and low inventory levels provide good support for market sentiment; downstream buyers are following up as needed, but the market's upward momentum is limited, resulting in high-level fluctuations in methanol prices within the week.

The downstream acetic anhydride market in China showed a weak performance. From May 18 to 24, the average ex-factory price of acetic anhydride dropped from 5,800 CNY/ton to 5,625 CNY/ton, a decrease of 3.02%. The raw material acetic acid was in a consolidation phase, with moderate support on the cost side. However, demand from downstream buyers was insufficient, leading to a weaker trading atmosphere in the market. The overall sentiment for the acetic anhydride market was bearish, and prices were adjusted downward during the week.

Looking ahead, acetic acid analysts believe that currently, the operating rate of acetic acid production remains low, providing moderate support from the supply side. Meanwhile, the price of methanol—a key raw material—remains relatively high, meaning cost pressures persist. However, downstream demand is weak, resulting in only average transaction volumes in the acetic acid market. Market participants are engaged in a tug-of-war, and it’s expected that acetic acid prices will stabilize and consolidate in the short term. Going forward, attention should be paid to developments in market supply.