Acetic acid: Is there much room for growth after the decline?

Acetic acid: Is there much room for growth after the decline?

This week, domestic acetic acid prices stabilized and even rebounded in some areas. The main reason is that Henan Longyu stopped for maintenance on November 19, and it took a long time, and the inventory was mainly supplied to contract users; while Huayi Shanghai's plant unexpectedly stopped on the evening of November 20, and the industry's operating rate dropped sharply. In addition, the inventory of major acetic acid factories is tight, and as the contract cycle of this month draws to a close, there are not many sources of goods that contract traders can sell. With some positive support on the supply side, some suppliers raised their prices, and the focus of negotiations in East China was significantly higher.

But at present, the main downstream PTA and acetate are maintained at a moderate level, but the terminal consumption is sluggish, and the epidemic situation is severe in many places in China. Most of the downstream products of acetic acid are facing the double pressure of high cost pressure and poor sales of their own products. In particular, small and medium-sized downstream parking or load reduction are common, and rigid demand support is weak.

In addition, although the operating rate of the industry has dropped sharply, the overall social inventory is still above 180,000 tons. Compared with the weak demand, there is no gap in the supply of goods in the market.

In terms of export, currently the major foreign acetic acid installations are running stably and the supply is abundant, and the inventory of acetic acid in Indian ports is at a high level. There is a large price difference between buyers and sellers. Exports are maintained at a normal level, which cannot yet stimulate domestic demand.

Against the background of lackluster demand and abundant supply of acetic acid, although local market prices have risen, there is no sentiment of chasing and buying downstream. The overall market sentiment is average, and the rebound is expected to be limited later.