Sharp Fall in Acetic Anhydride Prices in China
- 15-Jun-2022 5:49 PM
- Journalist: Jung Hoon
Shanghai, China: Acetic Anhydride prices have recently been falling in the domestic market after stagnating. Not only the factory prices but the transaction prices have been reducing in the country, which deteriorated the upward momentum of Acetic Anhydride. The prime reason behind this sudden fall in Acetic Anhydride prices is the declining price value of feedstock Acetic Acid. Besides, the market value of upstream methanol has also been fluctuating and impacting the market sentiments of Acetic Anhydride.
Furthermore, the start-up was low for the manufacturing of Acetic Anhydride this time, which has also been contributing to its price drop. Meanwhile, the Acetic Anhydride transactions were poorer than before, which has further been declining the market value of Acetic Anhydride in the regional market. In addition, the downstream demand from end-user industries has also been weak this week, eventually decreasing the Acetic Anhydride price in the regional market. Moreover, the downward pressure in the market has been influencing the prices of Acetic Anhydride.
Likewise, the pricing trend of several commodities has been going downwards in China. One factor contributing to that could be easing lockdown restrictions in the country. As lockdown norms have been removed, the port congestion has been relieved, declining the logistic charges, which were soaring earlier. Another reason for that could be market competitiveness, as after reopening the market for the different products has been fixed, the manufacturers have been reducing their margins in order to sell off their stocks before others.
As per ChemAnalyst anticipations, “The Acetic Anhydride price value is expected to decline further in the Chinese market for the next few weeks as Acetic Acid prices have been estimated to drop in the upcoming days. However, it is tough to predict anything for the long term due to fluctuating crude oil prices, flickering freight charges, and the changing covid situations.”