Would Acetic Acid Recuperate its Market Value in China?
- 17-Aug-2022 2:45 PM
- Journalist: Li Hua
Tianjin, China: The market sentiments toward Acetic Acid have been following a downward momentum in the Chinese market since the second week of June. The trend is declining as we move along with the third week of August. This consistent slump in Acetic Acid has been troubling the manufacturers more than ever as they have been squeezing their profit margins for so long. As of 15th August, the Acetic Acid market value dropped sharply, registering an almost 4% decrease from the previous day.
The Acetic Acid market has been proceeding with the ongoing week with a weaker sentiment. China's domestic market has more than sufficient stocks and has been experiencing a consistent supply flow for Acetic Acid. However, the downside of the story is that the demand from downstream industries is weak and limited, resulting in the overflowing of inventories in the country. The manufacturers and traders are curtailing their margins to maintain the regular frequency of shipments. The supply and demand dynamics are the major players driving the pricing trend of the Acetic Acid market, pushing the prices downwards.
Witnessing the whole situation, the biggest concern right now is whether the market value of Acetic Acid will claw up or it will continue with the plunge in the upcoming weeks. Succeeding with the Acetic Acid trend, the price value of downstream commodities such as Vinyl Acetate Monomer (VAM), Ethyl Acetate, Butyl Acetate, Acetic Anhydride, etc. has been plummeting for several weeks. Hence, the concerns around Acetic Acid market value also bother the manufacturers of Acetic Acid derivatives.
As per ChemAnalyst anticipations, "The market sentiments of Acetic Acid are not likely to improve in the short term as the downstream demand is not expected to improve or to keep up with the supply rate. Furthermore, the market support for Acetic Acid is weak, driving the market downwards."