The Chinese Market is Not Expecting a Recovery in Acetic Acid Price Trend
- 05-Aug-2022 12:22 PM
- Journalist: Nina Jiang
Shanghai, China: For quite some time, the Acetic Acid market in China has been falling, and for some weeks, the profit margins of Acetic Acid producers have been narrowing. However, there are no immediate indications that the market will recover. The market is currently predicted to decline even lower, and an upward trend in the market is not likely. Due to the faltering economy and falling crude oil prices, the pricing trend of the feedstock methanol has also been declining. However, the price of methanol has been decreasing more slowly than the cost of Acetic Acid. Methanol's market value has been moving in the direction of breakeven.
The market value of Acetic Acid (Glacial) plummeted by 2.65% during the week ending on 29th July with the assessed value of USD 550/MT FOB Qingdao. Acetic Acid prices have been slumping due to surging inventory levels as supply flow has been increasing day by day. Some manufacturing units, such as Celanese, restarted their production process recently, which has been soaring the operating rate and increasing the supply. Besides, the downstream demand for Acetic Acid has been moderate, which has not been corresponding with the supply rate; hence its price value has been declining consistently.
After prolonged losses, some manufacturers are considering cutting their production rate in the coming days. Even still, the production from numerous new factories that will start up this year will send the price of acetic acid tumbling once again. Following the reduction in Acetic Acid market value, the market sentiments of various Acetic Acid derivatives such as Vinyl Acetate Monomer (VAM), Ethyl Acetate, Acetic Anhydride, etc. have been slumping in the Chinese domestic market.
As per ChemAnalyst anticipations, "In the coming weeks, it is likely that the market emotions of Acetic Acid would deteriorate even more; recovery is not expected. Due to constant supply and insufficient demand, the pricing trend would be negative for several weeks."