May Acetic Acid Market Shakes and Declines

May 31st News

According to SpotCom data, the price of acetic acid in May declined. As of May 31, the average market price was 3,040 CNY per ton, a decrease of 153.33 CNY per ton from the beginning of the month when the price was 3,193.33 CNY per ton, representing a monthly price decrease of 4.80% in China.

In May, the acetic acid market continued to show a weak trend, with prices fluctuating downward. On the supply side, maintenance activities at acetic acid plants were concentrated, causing the operating rate to hover around 77%. As a result, the supply of acetic acid in the market contracted. However, demand remained persistently weak, and transactions in the downstream markets were lackluster. Downstream users primarily focused on making essential purchases, while holders found it difficult to sell their inventories. Meanwhile, methanol prices—the key raw material—fluctuated, providing only moderate cost support. Throughout the month, the acetic acid market continued to be constrained by weak demand, keeping price levels biased toward the lower end.

The downstream acetic anhydride market first rose and then fell. From May 1 to 31, the average ex-factory price of acetic anhydride dropped from 5,555 CNY/ton to 5,450 CNY/ton, representing a price decrease of 1.89%. In the first half of May, driven by cost support, the market showed strong upward momentum, and acetic anhydride prices tended to rise steadily. However, in the latter half of the month, acetic acid prices remained low, weakening the cost support. At the same time, downstream buyers became reluctant to purchase at high prices, leading to a bearish sentiment among market participants and causing acetic anhydride prices to stabilize and decline.

In May, the methanol raw material market fluctuated downward. As of May 31, the market average price was 3,093 CNY/ton, a decrease of 6.13% compared to the beginning of the month at 3,295 CNY/ton. The Chinese methanol market saw an increase in supply as maintenance facilities gradually resumed operations, while downstream operating rates were not high, leading to generally weak demand. Under the supply-demand dynamics, methanol prices adjusted downward. In the port areas, due to the impact of geopolitical conflicts, methanol imports were tight, providing some support to the domestic market, and methanol prices remained relatively high.

Outlook: Analysts believe that currently, the enthusiasm of downstream players in the acetic acid market is not high, and demand is weak. The acetic acid market is operating under a weak trend. As maintenance units gradually resume operations, the market supply is expected to increase, leading to greater inventory pressure for enterprises. Meanwhile, downstream purchases are mainly driven by rigid demand, and industry players lack confidence in the future market. It is expected that the acetic acid market will continue to operate with a weak and adjusted trend in June. Close attention should be paid to changes in market supply and demand.