August 31 news
According to SpotCom data, as of August 31, the average production price of ethyl acetate in China was 5,833.33 CNY/ton, a decrease of 26.67 CNY/ton compared to the beginning of the month at 5,860 CNY/ton, with an overall price decrease of 0.46%. The expectation of increased supply, limited downstream demand, and market sentiment bargaining have led to a weak operation of the ethyl acetate market.
Market Analysis: This month, the ethyl acetate market in China experienced a range-bound fluctuation with an overall weak trend. On the supply side, previously shut-down facilities resumed production, leading to an increase in the operating rate of ethyl acetate, and a clear bearish sentiment in the market, causing a decline in ethyl acetate prices. In terms of downstream demand, during the off-season, the market mainly maintained essential needs, resulting in a lackluster trading atmosphere. The price of raw material acetic acid increased, putting significant cost pressure on ethyl acetate, and the transaction focus for ethyl acetate weakened within the month.
According to Spotcom data, the price of acetic acid in July increased from 3,070 CNY/ton to 3,223.33 CNY/ton, with an overall price increase of 4.99%. On the supply side, concentrated maintenance of acetic acid plants led to a stronger market sentiment, supporting the rise in acetic acid prices. Downstream purchases followed demand, providing adequate support, and the acetic acid market operated strongly. The increase in raw material prices reduced the profit margin for ethyl acetate, and under some inventory pressure, negotiation focus shifted downward.
Looking ahead, the inventory pressure for ethyl acetate is relatively high, while downstream demand support is insufficient. The market sentiment is bearish, and it is expected that the ethyl acetate market will continue to operate in a weak and consolidative manner next month, with prices fluctuating within a narrow range. Specific attention should be paid to changes in supplier facilities and downstream follow-up situations.
