Acetic acid: supply and demand imbalance Price slash

Since the beginning of June, the market price of acetic acid has been declining, as of August 19 has fallen to 3,000 yuan (ton price, the same below), the price fell by nearly half, compared with the beginning of the year has been cut

The price is almost waist-high

Liaoning acetic acid dealer Qin Chuang introduced that since June 4, the average price of the acetic acid market has fallen from a stage high of 5640 yuan all the way to August 19 all the way to 3000 yuan, a decline of 46.

According to Qin Chuang, since the beginning of this year, the acetic acid market has rebounded sharply in March and May, and the turning point is close to the average price of 4200 yuan, touching the profit and loss cost line of the enterprise, and the acetic acid factory has a reluctance

However, after the may rally reached a stage high of 5640 yuan on June 4, under the drag of weak downstream demand, the trading atmosphere in the acetic acid market gradually faded, and the price retraced

Since then, the market has been in a downward trend until it falls to the 3,000 yuan line

The contradiction between supply and demand has emerged

In the view of Zhang Yanqiu, an analyst at Zhongyu Information, the increase in supply, the decrease in demand, and the upward trend of social inventories are the key factors

According to Zhang Yanqiu, from the supply side, in May and June, Nanjing Celanese, Nanjing Ineos and other sets of acetic acid plants have a long-term maintenance, and the operating rate is significantly lower than the conventional level

However, the recovery of the terminal consumption field is weak, the downstream enterprises of acetic acid are not working well, and the demand side is weak

At the same time, acetic acid exports also maintained regular levels

On the whole, the supply of acetic acid market continues to increase, but the downstream demand has always been weak

Shifts in supply and demand

In fact, in the past few years, driven by favorable factors such as the slow expansion of new production capacity, the obvious new downstream production capacity and the stimulation of exports by overseas device accidents, the acetic acid industry has shown a tight balance between supply and demand

Xu Na, an analyst at Jinlianchuang Chemical, believes that in the past few years, under the attraction of high profits in acetic acid, the new news of the device has been concentrated, and Hualu Hengsheng, Xinjiang Zhonghe United, Jiantao Energy, Qianxin Group, etc.

However, the downstream demand for acetic acid shows a slow growth trend

Overall, in the next few years, the new capacity of domestic acetic acid demand is far less than the expansion of the supply side, and the profit margins of enterprises will also be compressed, with a high probability near the cost line, and the market price is expected to continue to hover