June 29th, news:
According to Spotcom data, the price of acetic acid in June first declined and then rose. As of June 29, the average market price was 3,056.67 CNY/ton, an increase of 33.34 CNY/ton compared to the price at the beginning of the month, which was 3,023.33 CNY/ton, with a monthly price increase of 1.10%.
In June, the acetic acid market first declined and then rose. At the beginning of the month, due to demand constraints, the price of acetic acid continued to decline, following the trend from May. Later, because a major factory in Shandong temporarily shut down its operations, coupled with the current acetic acid operating rate being less than 80%, companies' sentiment turned bullish, and the price of acetic acid stopped falling and began to recover. In the second half of the month, although the overall inventory pressure for acetic acid producers in China was not significant, downstream buyers mainly purchased based on necessity, and the demand side somewhat limited the increase in acetic acid prices. Under the balance of supply and demand, the acetic acid market in China maintained a steady and firm operation.
June raw material methanol market showed a weak fluctuation. As of June 29, the market average price was 2,813 CNY/ton, a decrease of 10.98% compared to the beginning of the month at 3,160 CNY/ton. In the first ten days, supported by geopolitical conflicts and low inventory, the methanol price fluctuated and increased. In the middle and late part of the month, as geopolitical tensions eased, expectations for increased methanol imports rose, and at the same time, during China's traditional low consumption season, there was weak demand, leading to a strong bearish sentiment in the market, causing the methanol price to fall from its high. The support from the raw material end to acetic acid was average, limiting a significant rise in acetic acid prices.
Future Market Forecast: Analysts believe that the current operating rate of acetic acid production has significantly increased compared to the beginning of the month, and companies’ demand for shipments has also risen somewhat. However, downstream demand remains primarily driven by essential needs, resulting in a reasonably active trading atmosphere in the market. Meanwhile, the impact of raw material prices on acetic acid has been moderate, and there is a general lack of positive factors within the market. Therefore, it is expected that the acetic acid market will remain in a narrow trading range in July, with specific attention paid to changes in market supply and demand.
