In early April, as the domestic acetic acid price approached the previous low point again, downstream and traders’ purchasing enthusiasm increased, and the transaction atmosphere improved. In April, the domestic acetic acid price in China once again stopped falling and rebounded. However, due to the generally poor profitability of downstream products and difficulties in cost transfer, the rebound in this market trend is limited, with mainstream prices in various regions increasing by around 100 yuan/ton.
On the demand side, PTA starts less than 80%; Vinyl acetate also experienced a significant decline in operating rates due to the shutdown and maintenance of Nanjing Celanese; Other products, such as acetate and acetic anhydride, have little fluctuation. However, due to multiple downstream PTAs, acetic anhydride, chloroacetic acid, and glycine being sold at a loss near the cost line, the attitude after phased replenishment has shifted to wait-and-see, making it difficult for the demand side to provide long-term support. In addition, users’ pre holiday stocking sentiment is not positive, and the market atmosphere is average, leading to cautious promotion of acetic acid factories.
In terms of exports, there is a significant pressure on prices from the Indian region, with export sources mostly concentrated in major acetic acid factories in South China; The volume and price from Europe are relatively good, and the total export volume from January to April this year has significantly increased compared to last year.
In the later stage, although there is currently no pressure on the supply side, Guangxi Huayi is reported to have returned to normal around April 20th. Nanjing Celanese is rumored to restart at the end of the month, and the operating rate is expected to increase in the later stage. During the May Day holiday, due to limitations in logistics and transportation, it is expected that the overall inventory of Jianghui Post will accumulate. Due to the poor economic situation, it is difficult to achieve substantial improvement in the demand side. Some operators have relaxed their mindset, and it is expected that the short-term acetic acid market will operate in a light manner.