Price trend

According to the data monitoring of SunSirs, the acetic acid market dropped sharply in December. The average price of acetic acid at the beginning of the month was 3,282.50 RMB/ton, and the price at the end of the month was 2,950.00 RMB/ton. The monthly drop was 10.13%, and the price dropped 52.34% year on year.

Analysis review

In December, the acetic acid market was weak and downward, the raw material methanol market was weak, the cost support was insufficient, the downstream construction was low in the month, the demand was sluggish, and the market trading atmosphere was weak. At the same time, due to the impact of logistics and transportation in late December, enterprises had difficulty in shipping, manufacturers' inventory increased, some enterprises lowered their price to remove the inventory, and the acetic acid market continued to fall.

On the raw material side, the methanol market fell first and then rose. At the end of the month, the average price in the domestic market was 2,660.00 RMB/ton, which was 0.85% lower than the price of 2,682.67 RMB/ton on December 1. The main reason was supply and demand. In terms of supply, most production enterprises focused on de stocking, and the operating rate of traditional downstream was low, resulting in weak overall demand and weak market negotiation atmosphere. In addition, due to limited transportation in some regions, the inventory of enterprises increased, and the methanol market was weak.

The downstream EA market was consolidated in December, and the quotation at the end of the month was 7,233.33 RMB/ton, up 6.9% from the price at the beginning of the month of 6,766.67 RMB/ton. The overall situation of EA market was stable in the early and middle of the month, with little price change. In the late of the month, the trend was first up and then down, with obvious price fluctuations. The price change in the month was mainly affected by supply and demand. In the early stage, the market supply and demand were relatively balanced. In the later stage, the price of raw material ethanol rose and EA rose. At the end of the month, affected by logistics, the demand side weakened and the price of EA declined.

Market outlook

In the future, the analysts of SunSirs believe that the acetic acid capacity utilization rate at the supply side is on the high side, the supply side is sufficient, the downstream demand is sluggish, the trading atmosphere in the acetic acid market is light, the cost of coal is on the high side, the acetic acid manufacturers are under great pressure, many manufacturers have inverted costs, and the decline intention is not high. It is expected that the acetic acid market will be stable temporarily in the short term, with specific attention paid to the follow-up changes in the downstream.

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