Acetic Acid Market Values are Continuing to Deteriorate
- 17-Jun-2022 6:23 PM
- Journalist: Jung Hoon
Tianjin, China: Despite stability in feedstock Methanol prices, Acetic Acid values have consistently been declining in the Chinese domestic market. During the week ending on 10th June, the FOB prices of Acetic Acid dropped by 8.2% at Qingdao, and it is expected to fall by approximately 10% by the end of the week concluding on 17th June. As this much decrement in the value of Acetic Acid is surprising to witness, even more, when its feedstock is approaching consistent stability, ChemAnalyst researchers spoke with several traders regarding this sudden drop.
A thorough market analysis using both primary and secondary research revealed that, manufacturing plants are running smoothly and the production of Acetic Acid is good , following which the supply of Acetic Acid is consistent in the regional market of China. However, the downstream industries do not seem enthusiastic, leading to weak demand for Acetic Acid. Furthermore, witnessing the lessened market sentiments, manufacturers had all the intentions to ship their stocks. Still, unfortunately, the on-site industry is also running slow, and stakeholder’s quotations are going south as well.
Altogether, at this point, Methanol prices do not seem to influence the Acetic Acid market much; consistent supply rate and weak downstream demand are the two significant factors dominating the Acetic Acid market and contributing severely to its price decline. In India, the price of Acetic Acid is currently steady. However, it would soon start declining there and mirror the Chinese market trend, as China is the major exporter of Acetic Acid to India.
As per ChemAnalyst anticipations, “The Acetic Acid value would keep declining in the Chinese domestic market for now owing to the better supply rate, smooth supply chain, and weak downstream demand from end-user industries. However, the current market scenario can take a sudden turn, and it might gain upward momentum after completion of the next week.”