SunSirs: The Domestic Acetic Acid Market Fell First and Then Rose in November
December 02 2024 09:16:35 SunSirs (John)
Price trend
According to the Commodity Market Analysis System of SunSirs the price of acetic acid in November first fell and then rose. As of November 28th, the price was 2,950 RMB/ton, an increase of 100 RMB/ton compared to the price of 2,850 RMB/ton at the beginning of the month, representing a 3.51% increase during the month.
Analysis review
In early November, the price of acetic acid continued to decline following the trend of October, mainly due to high market inventory, weak downstream demand, and oversupply in the market, resulting in a continued weak operation of acetic acid prices. In mid to late month, good news was released in the market, with acetic acid prices rising strongly. The main factories in Shandong stopped production, resulting in a decrease in market capacity utilization. At the same time, downstream demand followed suit, with smooth on-site trading and reduced manufacturer inventory. Industry players were optimistic, and acetic acid prices remained firm and upward.
The methanol market on the raw material side was experiencing a strong upward trend. As of November 28th, the average price in the domestic market was 2,538.33 RMB/ton, an overall increase of 2.56% compared to the beginning of the month price of 2,475.00 RMB/ton. In November, the domestic methanol market mainly rose, with some large-scale downstream olefin plants continuing to be outsourced. In addition, the low inventory of methanol enterprises and some production enterprises limiting shipments had driven the continuous rise of methanol market prices in mainland China. At the end of the month, some downstream companies showed low enthusiasm for purchasing high priced methanol, resulting in weakened market trading and a weak decline in the methanol spot market.
Market outlook
SunSirs’ analysts believe that the acetic acid market was mainly stable, with no inventory pressure in supplier factories, a strong mentality among manufacturers, downstream entry into the market to follow up on demand, a decent trading atmosphere, and a relatively balanced market supply and demand. It is expected that acetic acid prices will remain high and firm in the future, and specific attention will be paid to downstream replenishment in the future.
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