Price trend                               

According to the Commodity Market Analysis System of SunSirs, the price of acetic acid in August first rose and then fell. As of August 30th, the price was 3,350 RMB/ton, which was 25 RMB/ton higher than the acetic acid price of 3,325 RMB/ton at the beginning of the month, with a price increase of 0.75%.

Analysis review                      

The acetic acid market fluctuated widely in August. In the first half of the month, the price of acetic acid remained stable, mainly due to delayed factory maintenance and a wait-and-see attitude among enterprises, maintaining shipments and downstream follow-up as needed, resulting in a stagnant market situation; As the second half of the month approached, factories underwent centralized maintenance, leading to a significant decline in the utilization rate of acetic acid production capacity. There was a strong upward trend in the market, and at the same time, the bidding prices of major factories in the northwest continued to rise. Prices in various regions followed suit, and with the support of favorable suppliers, market prices rose widely. After that, the news gradually returned to a flat surface, and traders were eager to settle down, resulting in a slight decrease in acetic acid prices. However, due to the impact of buying up and buying down sentiment, downstream purchasing was limited, and the demand side was bearish, causing the center of acetic acid to continuously shift downwards.

The methanol market on the raw material side first fell and then rose. As of August 30th, the average price in the domestic market was 2,480 RMB/ton, a decrease of 1.20% compared to the beginning of the month price of 2,510 RMB/ton. In the first half of the month, the recovery of domestic methanol plants exceeded the loss, the utilization rate of production capacity increased, and the supply side was negatively affected. The demand side maintained weak operation, and the price trend continued to decline; In the second half of the month, some methanol plants were unplanned to shut down, resulting in a narrow reduction in domestic production. In addition, large-scale olefin extraction in the northwest led to a rebound in the domestic methanol market. However, due to the lack of significant improvement in traditional downstream industries, demand remained weak, which suppressed the increase in methanol prices. At the end of the month, methanol prices were once again lowered.

Market outlook

SunSirs’ analysts believe that the acetic acid price continued to decline, downstream demand was weak, market sentiment was bearish, supply side manufacturers' inventory was still acceptable, prices were mostly affected by the trade market, prices were lowered, demand support was insufficient, and market trading was limited. It is expected that the acetic acid market will continue to consolidate to be weaker in the short term, and specific attention will be paid to downstream replenishment in the future.

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