August 25 news
Recently, the acetic acid market in China has shown a strong upward trend, with the price of methanol, the raw material, rising and providing robust cost support. Market participants have a bullish mentality. Due to differences in inventory and downstream purchasing demand in some regions, prices have fluctuated differently, but overall, the market performance is relatively strong. As of August 25, the average price of acetic acid in the market was 3,220 CNY/ton, an increase of 143.33 CNY/ton compared to the price of 3,076.67 CNY/ton on August 17, representing a price increase of 4.66%.
Cost end support is strong: The methanol market has risen with fluctuations, and the cost end provides favorable support to acetic acid, driving a bullish market sentiment. Acetic acid companies in China have raised their quotes.
Supply-side inventory is not high: Although the operating rate of acetic acid has slightly increased, the overall inventory of enterprises is not high. Some shipments are smooth, and the spot market is tightening. Industry players have a positive outlook, driving up the price.
Demand-side support is decent: Downstream sectors are mainly following demand, with some regions seeing concentrated orders and stronger quotes from companies. In the Central China region, traditional off-season leads to relatively weaker demand, which has somewhat suppressed price increases. However, the prices of downstream products such as acetic anhydride and ethyl acetate are trending stronger, providing decent support on the demand side.
Market Forecast: In the short term, the acetic acid market in China is expected to continue its strong performance, with varying downstream demand and inventory levels leading to divergent trends across different regions. As production rates increase over time, the market supply is expected to rise, and it is projected that the acetic acid market will experience a period of fluctuation and consolidation. Close attention should be paid to the market supply and the downstream uptake.
