Shanghai: Acetic Acid prices have been marginally slumping daily in the Chinese domestic market, which has been almost stagnant for the past few days. However, the pricing trend of Acetic Acid has been showing bearish momentum since the second week of June. With several up and downs, the Acetic Acid prices were majorly on the lower side while wrapping up the month of June. As of now, the prices will likely continue going down in the first week of July.

The drop-in trading activities are the prime factor behind this decline in Acetic Acid value. China is among the major exporters of Acetic Acid worldwide, which exports Acetic Acid majorly to India, Belgium, South Korea, etc. A significant fall in the Acetic Acid export has been observed, which led to the decrease in prices. Furthermore, the demand from downstream industries for paints, pharmaceuticals, foods, and beverages was weak, leading to a reduction in Acetic Acid prices.

The downstream industries of Acetic Acid are purchasing the same in a very small amount, mainly just as much as they need. The Acetic Acid manufacturers have been selling their products at significantly less cost while minimizing their profit margins. Similarly, the overall negotiated transaction prices have also been going south, supporting the pricing trend. Altogether, the downstream inquiry for Acetic Acid was weak, along with lesser purchasing value and decreased trading activities which plummeted the market sentiments toward Acetic Acid in China.

ChemAnalyst anticipations, “In the upcoming days, the Acetic Acid market would be more sorted out and smooth, prices are likely to continue their downward momentum. The Chinese market sentiments for Acetic Acid are likely to showcase stagnancy with marginal changes. For now, any major change in the Chinese Acetic Acid market is not expected.”