SunSirs: Lack of Favorable Conditions in the Market, the Acetic Acid Market Was Operating Weakly

Price trend

According to the Commodity Market Analysis System of SunSirs, as of March 26th, the average price of acetic acid was 2,810 RMB/ton, a decrease of 1.40% compared to the acetic acid price of 2,850 RMB/ton on March 17th, and an increase of 0.36% compared to the beginning of the month.

Analysis review

Recently, the acetic acid market has been weak, and enterprise quotations have been continuously lowered. On the supply side, the utilization rate of acetic acid production capacity has increased, the market supply volume has increased, and the shipping sentiment of enterprises was strong. The enthusiasm of downstream market entry was weak, and a small amount of purchases were closely following demand. The shipment of enterprises was poor, and under the game of supply and demand, the price of acetic acid was weakly lowered.

The upstream methanol market was experiencing strong fluctuations. From March 17th to 26th, the average domestic market price increased from 2,670.00 RMB/ton to 2,679.17 RMB/ton, with an overall increase of 0.34%. In the early stage, the macro market sentiment rebounded, coupled with low inventory and limited loading by some enterprises, and the implementation of planned maintenance for some domestic facilities. The enthusiasm for trade procurement was high, which promoted the strength of the domestic methanol market. Later, downstream resistance caused the market transaction center to fall.

The downstream acetic anhydride market continued to decline. On March 26th, the average ex factory price of acetic anhydride was 4,800.00 RMB/ton, a decrease of 2.29% compared to the price of 4,912.50 RMB/ton on March 17th. The upstream acetic acid market was running weakly, the cost of acetic anhydride was bearish, enterprise quotations have been lowered, downstream demand was weak, market transactions were insufficient, and acetic anhydride prices have continued to decline during the cycle.

Market outlook

The acetic acid analyst from SunSirs believes that the acetic acid plant was temporarily operating stably, with sufficient market supply. Enterprises were actively shipping, and downstream entry into the market followed up as needed. The trading atmosphere in the market was relatively weak, and it is expected that the acetic acid market will operate in a wait-and-see manner in the short term. Specific attention will be paid to changes in the plant and downstream follow-up.

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