June 29th News
According to Spotcom data, as of June 29, the average production price of ethyl acetate in China was 5666.67 CNY/ton, a decrease of 300 CNY/ton compared to the beginning of the month at 5966.67 CNY/ton, with an overall price decrease of 5.03%. Supply is abundant, but downstream demand is weak, leading to low market transactions and a downward trend in the ethyl acetate market.
Market Analysis: This month, the acetate ester market in China continued to decline. On the supply side, some previously shut-down facilities have resumed operations, increasing the operating rate of acetate ester production and boosting the market supply. This has increased the pressure on companies to sell their products. Demand is clearly constrained as the end-user industries are in the traditional low-demand season, resulting in a weak trading atmosphere. Downstream buyers mostly purchase based on immediate needs, and some companies have continuously lowered the transaction price of acetate ester to promote inventory clearance. Although the price of acetic acid, the raw material, has stopped falling and rebounded, the overall supply-demand imbalance (oversupply and weak demand) for acetate ester is evident, which limits the positive impact on acetate ester. Consequently, the profit margin for acetate ester has been compressed, and the market sentiment remains predominantly bearish.
According to SpotCom data, as of June 29, the price of acetic acid was 3,056.67 CNY/ton, an increase of 1.10% compared to 3,023.33 CNY/ton at the beginning of the month. On the supply side, the main factory in Shandong region temporarily shut down its equipment, and with the current acetic acid operating rate below 80%, the price of acetic acid stopped falling and rebounded during the month. The operating rate of acetic acid was not high within the month, and the inventory pressure on enterprises was not significant. Downstream buyers followed up with rigid demand, and the acetic acid market operated steadily and firmly.
Looking ahead, ethyl acetate supply in China is ample, and companies face significant inventory pressure. The downstream market is in a traditional off-season, with moderate demand support. The price trend of raw material acetic acid is relatively strong, which may provide some boost in the future. Under the tug-of-war between supply and demand, it is expected that the ethyl acetate market in China will show a weak and narrow consolidation next month. Specific attention should be paid to changes in the supply-side facilities and the follow-up situation of the downstream market.
