Price trend

In August, the market for EA showed a weak downward trend. According to the Commodity Market Analysis System of SunSirs, as of August 30th, the average production price of EA was 6,016.67 RMB/ton, a decrease of 3.22% compared to the beginning of the month price of 6,216.67 RMB/ton. The main reason was poor demand, limited upstream support, and a bearish attitude from the supply side, resulting in a weak decline in the price of EA.

Analysis review

This month, the overall market price of EA had declined. The price continued to decline in the first half of the month, mainly due to the stable raw material market, insufficient cost support, and weak downstream demand, resulting in a continuous decline in the EA market; In the second half of the month, the price of raw material acetic acid rose sharply, which had a positive impact on the cost side and led to a rebound in the price of EA. However, with the decrease in raw material prices, the cost advantage disappeared, and coupled with flat downstream demand, the market support was insufficient. The atmosphere in the market was bearish again, and the price of EA fell.

According to the SunSirs’ Acetic Acid Commodity Market Analysis System, as of August 30th, the price was 3,350 RMB/ton, an overall increase of 0.75% compared to the acetic acid price of 3,325 RMB/ton at the beginning of the month. The price of acetic acid on the raw material side first rose and then fell, with limited cost support. The acetic acid market continued to transmit to the end, affecting the weak performance of downstream EA.

Market outlook

The upstream acetic acid price of EA continued to decline, with a negative impact on the cost side. At the same time, the bidding prices of the main factories of EA continued to decrease, and industry players lacked confidence in the future market. Downstream companies followed up as needed, and the market trading atmosphere was quiet. It is expected that the EA market will be consolidated to be weaker in the future. It is recommended to pay attention to the price execution of raw material acetic acid and EA manufacturers.

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