As the saying goes, since the beginning of September, the domestic acetic acid market has started to increase, and prices have been raised frequently. After the eleventh holiday, the upward trend is more obvious. Up to now, the price of acetic acid in East China is above RMB 2,600/ton, an increase of more than 35% compared to two months ago. Although it pales in comparison with the increase of more than twice the TDI, it is also among the best in many chemical products. So, what factors are driving the rise of acetic acid? How far can it rise? The Acetic Acid Supplier will tell you the answer
The main reason for this wave of acetic acid prices is cost-driven. Raw materials from coal to methanol continue to soar. Due to the influence of supply-side reform factors, domestic coal prices have continuously soared, which has led to the increase in the production costs of domestic methanol companies from the cost side, which in turn led to higher spot prices. The newly promulgated regulations on over-loading and over-limit transport vehicles have greatly increased the cost of highway logistics and increased the pressure on enterprises. On the other hand, the continuous decrease in the supply of equipment in the Middle East, the Americas and Southeast Asia, coupled with the recent depreciation of the RMB exchange rate, has led to an increase in the price of methanol on the external disk. In East China, the market pattern in which the external market dominates the internal market is particularly obvious, resulting in a continuous increase in prices. In addition, since the National Day holiday, there have been many domestic methanol plant shutdowns and most companies have no inventory pressure, so prices have been firm. Several positive factors have superimposed, leading to the continued increase in the price of raw material methanol after the holiday.
Acetic Acid
In addition to cost factors, the tight supply of Acetic Acid also supports the market. After the National Day, the inventory of domestic glacial acetic acid manufacturers is still at a low level and is becoming increasingly tight. Although most of the northern manufacturers started their work normally, the East China Thorpe No. 3 unit was shut down on October 7 due to a malfunction, and the supply side declined. The Yangtze Acetyl 500,000-ton/year acetic acid plant and the Great Wall Energy & Chemical’s 300,000-ton/year acetic acid plant will begin maintenance on October 14-15. The former will last for one month and the latter will last for half a month. The export situation is more optimistic. Driven by the decrease in the supply of some devices in the Asia-Pacific region, export prices are bullish after the holiday. Therefore, the export of parts of the supply of East China manufacturers has made the domestic tension worse.
Driven by the sharp rise in the price of acetic acid, the downstream industry chain has risen. Ethyl acetate, sec-butyl acetate and chloroacetic acid rose by a large margin, followed by butyl acetate, methyl acetate, and acetic anhydride also rose to varying degrees. Although the price of vinyl acetate was once lowered due to export orders in mid-September, the overall trend rose slightly, and it is currently at a relatively high level during the year.
The domestic supply of acetic acid market still has strong support, and manufacturers' inventory is not high, which has a strong stabilizing effect on the market mentality. However, as several large-scale acetic acid plants were restarted one after another in the later period, the supply of goods gradually increased, and market participants' worries increased. Therefore, the ex-factory price of acetic acid was difficult to continue to increase. At present, downstream demand is relatively stable, but buyers are more cautious in receiving goods, purchase goods on demand, high-end transactions are reduced, holders are selling normally, inventory is not high, and quotations are stable. There is not much room for the short-term acetic acid market to go up and down, and it will mainly consolidate within a narrow range.
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