Early June 2025 Scenario: China Acetic Acid Prices Slide Amid Tepid Demand from South Asia

As of first half of June ****, Acetic Acid prices in China declined, reflecting pressure from international demand, especially from South Asia. Despite stable domestic fundamentals, thin export interest—particularly from India, where CFR discussions slipped—kept Chinese FOB prices in check. Domestic ex-tank prices had shown strength in late May due to tightening supply and firm producer sentiment, supported by reduced inventories and upcoming maintenance plans at several acetic acid and VAM units. However, the positive tone in the local market did not fully translate into export gains due to freight stability and muted downstream sentiment abroad. Unless Acetic acid demand from key importing markets recovers significantly, FOB Qingdao pricing is expected to remain under mild downward pressure in early June.

China’s acetic acid production continued broadly stable in late May, with plants running near optimum rates. However, several scheduled and unplanned...