Price trend

Recently (5.11-5.30), the domestic EA market had been weak and declining, with prices continuing to decline. According to the Commodity Market Analysis System of SunSirs, as of the 30th, the price of EA had dropped from 6,366.67 RMB/ton to 6,290.00 RMB/ton, a decrease of 1.20%. The cumulative downward adjustment of enterprises was around 100-130 RMB/ton. The main reason was the bearish cost side and poor downstream demand.

Analysis review

In mid to late May, the upstream and downstream support for the EA market was weak. The utilization rate of production capacity on the supply side was at a medium to low level, with no pressure on supplier inventory and manufacturers actively shipping as the main focus; On the raw material side, the price of acetic acid had continued to decline, with insufficient cost support. The upstream market had been transmitted to the terminal market, leading to an increase in bearish sentiment among businesses and affecting downstream purchasing sentiment. Downstream acceptance of high priced goods was average, and entry into the market was often followed up on demand. Taking into account the sentiment of the upstream and downstream markets, the price trend of EA had decreased.

Market outlook

In the future, the negative impact of the upstream and downstream of EA is expected, with no pressure on supplier supply and acceptable market support. The internal game of the market continues, and it is difficult to improve the short-term fundamentals. It is expected that the EA market will continue to operate in a wait-and-see manner in the short term. It is recommended to pay attention to the price execution of raw material acetic acid and EA manufacturers. As of May 30th, the mainstream transaction price in the market was between 6,200-6,370 RMB/ton.

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