Price trend

This week (12.12-16), the domestic price of EA did not change much. According to the statistics of SunSirs, the decline this week was 0, the raw material acetic acid hovered at a low level, the main factories in Shandong stopped selling, the market supply was tighter compared with the previous period, and EA temporarily stopped falling due to the improvement of supply and demand. At the weekend, the market price of EA was between 6,200-6,500 RMB/tonn.

Analysis review

From the perspective of acetic acid, according to the monitoring of SunSirs, the price of acetic acid continued to decline this week, with a weekly drop of 0.55%. The price was still low. Downstream demand downturn was difficult to support prices out of the haze, especially in North China, Northwest and other regions where demand was weak, and the fundamentals were negative, which may be difficult to reverse in the later period.

According to the data from SunSirs, the price trends of acetic acid and EA are highly correlated. Recently, the curves of the two intersected, and the decline of acetic acid was stronger than that of downstream EA.

In addition, from the perspective of EA supply, the starting rate of EA this week was slightly lower, and the industry's operating rate was about 55% to 60%. Shandong large factories suspended sales, easing the pressure on market supply, but high social inventory still restricted the price rebound. This week, some manufacturers' quotations were mainly stable with small changes, and some factories' prices were raised, but the market expectation turned weak, and the situation that the supply of EA exceeded the demand remained unchanged.

On the demand side, downstream procurement remained just in demand, and the purchase intention of dealers and downstream factories turned weak. The main factory in Shandong changed from auction to retail, and the deal was not ideal. Downstream orders contracted, resulting in a significant slowdown in the speed of goods delivery. The number of transactions in the market was relatively small, and most transactions were small orders at low prices.

Market outlook

In the future, the EA analysts of SunSirs believed that the raw material acetic acid was sluggish and there were no much good factors. It was unlikely that it would continue to rebound in the later period, and the cost would not have support. In addition, the supply and demand will not improve too much, so it is expected that acetic acid will remain weak in the short term and the price will fluctuate slightly.

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