China's acetic anhydride prices declined in May, pressured by softer upstream costs and subdued downstream demand, especially from cellulose acetate. Early May saw sellers trimming offers after acetic acid costs eased, while mid-month producers temporarily firmed quotations before the trend resumed lower into late May. The combination of cheaper feedstock and limited restocking kept export and domestic acetic anhydride offers under pressure in recent weeks. Demand weakness was most visible in cellulose acetate, where operating rates remained moderate and consumption was limited, constraining room for price gains despite some attempts to lift quotes mid-month. Upstream dynamics were a primary driver: a steep drop in acetic acid reduced production costs, enabling more aggressive export pricing, while stable coal-based methanol supported steady feedstock flows and mitigated supply tightness. Price-lift attempts faded as the lower cost base enabled renewed concessions, leaving the market softer overall. Looking ahead, the outlook tilts toward stable to softer, with limited upside unless downstream buying improves or producer pricing behavior shifts.
