Price trend

According to the Commodity Market Analysis System of SunSirs, the price trend of acetic acid in February fluctuated, with a price of 2,800 RMB/ton as of February 28th. Compared with the acetic acid price of 2950 RMB/ton at the beginning of the month, the price has decreased by 150 RMB/ton, a decrease of 5.08% during the month.

Analysis review

In early February, the price of acetic acid fell weakly, mainly due to the improved utilization rate of acetic acid production capacity after the holiday, low downstream production, insufficient on-site demand, weak market trading atmosphere, and continuous downward adjustment of acetic acid quotations; In the middle of the month, some factory equipment maintenance plans were released, and the mentality of operators was quite high. Coupled with stable downstream follow-up, the prices of acetic acid enterprises continued to rise; In the latter half of the year, the acetic acid market remained strong, but downstream consumers showed resistance to prices and sought low-priced purchases, resulting in poor shipments from enterprises and a shift in the focus of acetic acid transactions.

The market trend of methanol on the raw material side fluctuates within a certain range. As of February 28th, the average price in the domestic market was 2,629 RMB/ton, a decrease of 0.25% compared to the beginning of the month price of 2,635 RMB/ton. After the holiday, the overall destocking of methanol enterprises was significant, and methanol prices were rising strongly; Afterwards, downstream resistance to high prices weakened the market's purchasing enthusiasm, and methanol prices fell sharply; In the second half of the month, downstream external procurement provided some boost to the mainland market, but overall rational procurement was maintained, which restrained the increase in methanol prices. The overall mainland market experienced a narrow range of upward fluctuations.

Market outlook

SunSirs’ analysts believe that the trading atmosphere in the acetic acid market was weak, downstream entry enthusiasm was not high, and supply side manufacturers faced significant sales pressure. In the short term, the acetic acid market will continue to operate weakly. In the long run, it is expected that some acetic acid plants will undergo maintenance next month, and the capacity utilization rate will decrease. In the future, acetic acid prices may be stronger and rise, and specific attention should be paid to downstream follow-up situations.

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