July 31st News
According to Spotcom data, the price trend of acetic acid in July first increased and then decreased. As of July 31, the average market price was 3,223.33 CNY/ton, an increase of 160 CNY/ton compared to the beginning of the month when the price was 3,063.33 CNY/ton, with a monthly price increase of 5.22%.
In July, the acetic acid market in China showed a generally strong trend. In the first half of the month, with concentrated maintenance of acetic acid plants, the market supply tightened, and companies had a strong intention to increase prices, leading to continuous increases in acetic acid prices. In the second half of the month, as some of the maintenance units resumed operation, the expected supply of acetic acid increased. At the same time, the purchasing enthusiasm from downstream buyers was not high, with most following demand, leading to a weaker market atmosphere and a downward shift in the transaction focus of acetic acid. However, due to the lack of a significant increase in the operating rate of acetic acid, prices in some regions remained firm.
The methanol market fluctuated within a range in July. As of July 31, the average market price was 2,627 CNY/ton, an increase of 1.31% compared to the beginning of the month at 2,593 CNY/ton. Driven by geopolitical conflicts and plant maintenance in China, there was a strong intention to raise methanol prices, but the demand during the traditional low season for downstream consumption was weak, leading to a market sentiment standoff, which limited the price increase of methanol. The raw material methanol provided insufficient long-term support for acetic acid, with limited cost benefits.
Outlook: Analysts believe that as acetic acid plants resume operations in China, the market supply is expected to increase. However, downstream demand is unlikely to improve in the short term, leading to a weakening in the supply fundamentals. It is projected that the acetic acid market in China will remain weak and consolidate in August. Close attention should be paid to the restart of the plants and the follow-up situation in the downstream sector.
