Acetic acid market under opportunity and challenge.

1.Global acetic acid supply pattern

Regional landscape

Regional landscape

Total global capacity is about 17.5m tonnes

China 9.55 million tons

Foreign 7.95 million tons

The main global supply areas are concentrated in Asia and Southeast Asia

Two major suppliers in the world:

  Celanese: 2.1 million tons or 26 percent

  B P: 3.55 million tons accounts for 44%

  Others: 2.34 million tons, 30%

2.Global acetic acid notch region

Gaps in the area

Major gap regions worldwide: India, Europe, South America

Reasons for the small proportion of Asian goods in the European market :(1) the long journey, high freight, the price is not consistent; (2) Restricted by the law of REACH; (3) The European market is dispersed, and sales are dispersed through multiple channels. (4) 70% of the port of import is From Belgium, and the other 30%

Europe 600 000 MT: Major importers: UK, France, Germany, Netherlands, Belgium, Ireland

South America 200,000T: Major importers: Brazil, Argentina, Chile, Colombia

South Asia 900,000 mt: Major importer: India

Southeast Asia 200,000 tons, major importers: Thailand, Indonesia

Analysis of supply and demand situation in India market

India Market Introduction:

1. Lack of resources and import of energy.

2. Poor infrastructure, difficulty in new acetic acid installation.

3. The demand continues to grow, with the demand for acetic acid reaching more than 1.05 million tons, and the annual import volume reaching about 900,000 tons.

Domestic acetic acid supply and demand pattern

Market influencing factors

Total supply.

Receiving orders at the exit.

Downstream demand.

Purchase mentality (Short-term effect).

Cost accounting (Cost affects operating rate)

Distribution and direction of acetic acid production capacity

North China and Shandong: 2.6 million tons/year

Tianjin alkali Plant 400,000 tons/year

Hebei kingboard 600,000 tons/year

Hua lu hengsheng 600,000 tons/year

Shandong Yankuang 1 million tons/year

Nw: 800,000 tons/year

Great Wall energy 300,000 tons/year

Extend oil by 500,000 tons per year

Southwest: 400,000 tons/year

Yangzi acetyl 400,000 tons/year

Dong bei: 350,000 tons/year

Dalian Hengli 350,000 tons

East China: 4.3 million tons/year

Jiangsu Thorpe 1.4 million tons/year

Shanghai Huayi brothers 1.2 million tons/year

Celanese 1.2 million tons/year

Nanjing BP 500,000 tons/year

Central China: 1 million tons/year

Henan Longyu 500,000 tons/year

Henan Shunda 500,000 tons/year

Downstream industry of acetic acid

PTA is low single consumption, large capacity, rapid expansion, high profit support high start, become the downstream acetic acid growth fastest, the largest proportion of the industry.

Traditional acetate, chloroacetic acid, diketene industry demand changes little.

The acetic anhydride industry as a result of Kaifeng Ronghua and Jilin Kaimeike stop production, supply reduced, acetic anhydride profit considerable.

With acetic acid prices returning to a reasonable range and corn prices rising, the ethanol industry is profitable.

Downstream demand of acetic acid

Northwest Region (shanxi, xinjiang, menggu), Demand 800,000 tons

Central China area, (hunan, hubei, henan) Demand 570,000 tons

Southwest China (Guizhou, Sichuan, and Chongqing) Demand 400,000 tons

Dongbei region (heilongjiang, jilin, liaoning) needs 680,000 tons

North China and Shandong (Beijing-Tianjin-Hebei) Demand 1.4 million tons

East China region (Jiangsu, Zhejiang, Shanghai, and Anhui) Demand 2.5 million tons

South China region :(fujian, guangdong) demand 900,000 tons

Future acetic acid industry chain focus

Future industry focus

Acetate is faced with excess capacity and waterborne coatings impact

Aging of glacial acetic acid plant and supply stability under seasonal factors

Change of trade flow after production capacity optimization in Celanes

       Celanese (USA) + 700,000 tons

       Celanese (Asia Pacific) - 600,000 tons

The change of supply pattern and domestic trade direction after huayi Qinzhou plant put into production

Impact of BIS Standards in India after implementation