Tight supply and rising price of Chinese Glacial Acetic Acid

Till April 26, the average ex factory price of Glacial Acetic Acid in East China was 7595.00 CNY / ton, up 22.30% in April.

In April, the price of Glacial Acetic Acid rose widely since the Tomb-Sweeping Day holiday. During this month, some Glacial Acetic Acid plants were shut down for maintenance, the enterprises were short of inventory, the downstream demand remained strong, the spot supply continued to be tight, and the quotation of Glacial Acetic Acid rose at a high level. It was difficult to make up for the short-term supply gap, so the Glacial Acetic Acid market was pushed up.

The upstream domestic methanol market continued to rise, the inventory of the mainland and ports decreased, and some olefins were imported to support the market. The upward futures market makes the domestic spot market price rose. Till April 26, the price in Shandong was about 2525.00 CNY / ton. At present, on-site shippers are reluctant to sell at low prices, while the downstream just needs to purchase. The market turnover is weak, and the methanol market is mainly in consolidation.

 The downstream price of Acetic Anhydride rose along with it. Till 26th, the ex-factory price of Acetic Anhydride was 11,1333.33 CNY/ton, up 21.21% in April. Mainly due to the upstream market trend, the impact of tight supply of raw materials, acetic acid prices continued to rise in April, rising raw material costs, driving the price of acetic anhydride to follow the increase.

In terms of acetates, the domestic price of ethyl acetate rose sharply. Till 26th, the average ex factory price of ethyl acetate in East China was 9562.50 CNY / ton, up 11.19% in April. The upstream acetic acid market continued to rise, the spot supply of raw material n-butanol market was tight, and the goods stock was prepared before Labor Day holiday. The mentality of the industry was bullish. Under the favorable conditions of supply and demand, the market trend of ethyl acetate continued to be strong. The price of raw materials is strong. The quotation of butyl acetate manufacturers keeps up with the trend. The lower reaches do not accept the high price and purchase on demand. The supply of raw material acetic acid market is tight, which supports the future market of downstream acetic acid.

The domestic glacial acetic acid market is in short supply, the operating rate of acetic acid is low, some acetic acid individual enterprises fail to operate normally, the market supply is difficult to recover in a short time, and the downstream demand is strong. It is expected that the acetic acid market will continue to operate at a high level, and the long-term trend needs to pay attention to the starting situation of acetic acid plants.