The Acetic Acid Price Follows the Methanol Downtrend
- 14-Jul-2022 4:35 PM
- Journalist: Nina Jiang
Shandong, China: The Acetic Acid market has been slumping again this week in the domestic market. After a significant rise in the week ending on 1st July, the Acetic Acid prices have been falling continuously. During the current week, the Acetic Acid market has been following the feedstock Methanol prices and declining marginally. Methanol market value has declined amidst the fall in Zhengzhou commodity exchange quotations for Methanol this week.
The methanol market has been experiencing excessive supply combined with poor downstream demand, and there is no hope for improvement in the offtake in the short term. Consequently, the price of Methanol has decreased in China while impacting the Acetic Acid pricing trend. Furthermore, the quotations introduced for Acetic Acid by several enterprises have more or less been the same except for minor changes. The downstream market enthusiasm from the paints and coatings industries has remained as usual. The follow-up offtake from the Acetic Acid market has mainly been fixed and limited.
In addition, the trading environment of Acetic Acid has been plummeting as well, and to increase the trading frequency, the enterprises have been lowering the price value of the commodity while cutting short their profit margins. Besides, the shipments from manufacturing units have been declining significantly, causing the Acetic Acid stocks to pile up. Inventories have been overflowing with abundant supply and putting pressure on the market. Altogether, plunging demand from downstream industries, dropping feedstock price value, reduced trading activities, and ample supply are all the factors contributing readily to the price fall of Acetic Acid in the Chinese market.
As per ChemAnalyst anticipations, “The Acetic Acid market would decline further in the upcoming days as Methanol pricing trend is expected to continue going south and any recovery in downstream demand cannot be expected right now.”