Glacial Acetic Acid and Acetate Esters Industry Weekly Report

Glacial acetic acid price situation
The glacial acetic acid market was slightly weak during this period, and the northwest market fell more. At the beginning of the week, although the inventory of enterprises declined, the sales pressure of factories in various regions was different. The inventory of northwest factories increased, and the inventory pressure in other regions was not great. In addition, the long-term contract cycle this month gradually ended, and the overall market sentiment for taking goods was general; near the middle of the week, the general price of shipments in the northwest continued to decline, but the shipments in central China, northern China and other regions improved compared with the beginning of the week, so the price was strong. After the middle of the week, the overall market mentality was general, and each region shipped according to its own mood, and the price was slightly loose.

Analysis of glacial acetic acid inventory
As of March 24, the inventory of domestic acetic acid enterprises this week was 155,300 tons, down 6.56% from the previous month.
During this period, the inventory of glacial acetic acid has been running down, among which the inventory in East China and South China has fallen rapidly. Last week, due to the rapid decline in factory prices, some regions have gradually approached the cost line, so some traders and downstream buyers have improved their sentiment compared with the previous period. In addition, the South China region has gradually resumed long-term delivery, and the overall inventory has gradually declined. Longzhong Information predicts that the inventory of glacial acetic acid in the next period may fluctuate narrowly.

Ethyl acetate situation
This week, the market price of ethyl acetate adjusted narrowly. The lowest price in the East China market during the week was 5225 yuan/ton ex-factory, and the highest price was 5250 yuan/ton ex-factory. The weekly average price was 5240 yuan/ton, down 2 yuan/ton from last week, and down 0.04 percentage points from the previous month.
At the beginning of the week, the market price of ethyl acetate weakened locally, the trading volume was relatively scarce, and the downstream willingness to accept goods was limited. The industry took into account the weak operation of the raw material acetic acid market and the lack of strong support from the cost side for the market, resulting in poor market entry by middlemen and downstream. In addition, there are still some low-priced sources in the market to be consumed, and the purchasing power of new orders is poor, and the upstream shipment demand still exists. Subsequently, the factory was unwilling to make a profit, and the mentality was firm and stable. The trading volume in various places was significantly increased under the support of the concentrated replenishment cycle in the downstream, and the factory inventory pressure was transferred downward, but the long-term mentality was still cautious. In addition to some rigid demand buying orders in the downstream, some industry players chose to wait and see.
Although demand is weak next week, the upstream supply side is not under great pressure at present. Most factories are in a state of balanced production and sales, and there is no obvious inventory pressure. However, the price of raw materials acetic acid and ethanol is expected to be bearish, and the cost side has led the industry to enter the market cautiously. With the market mixed with long and short positions, Longzhong expects that the ethyl acetate market will rise and fall in a narrow range next week, and pay attention to the release of maintenance news in the later period.

Butyl acetate situation
This week, the center of gravity of the butyl acetate market price continued to fall. The lowest price in the East China market during the week was 6,200 yuan/ton, the highest price was 6,400 yuan/ton, and the weekly average price was 6,310 yuan/ton, down 145 yuan/ton from last week, and down 2.25 percentage points from the previous month.
At the beginning of the week, the market price of butyl acetate was temporarily stable, among which the prices of raw materials n-butanol and acetic acid did not fluctuate much, and the cost side provided bottom support for the market. However, due to the imminent increase in the supply side, there was negative feedback from downstream demand, insufficient willingness to purchase new orders, factory shipments were blocked, and inventory accumulation was obvious. Subsequently, the Shandong factory equipment was shipped as scheduled, and the supply side incremental news was implemented. The market was full of bearish sentiment. At the same time, the cost side had no support for the market. The prices of raw materials acetic acid and n-butanol were both weak, and the enthusiasm of middlemen and downstream purchases was poor. The negotiation mood was not smooth for several consecutive days. Except for a small number of small orders to replenish stocks, it was difficult to see the rhythm of volume trading, and the willingness to wait for a decline was obvious.
In the short term, the increase in supply in the northern market has a significant negative impact on the market. Traders and downstream companies are bearish on this. The competition between factories is relatively high. Considering the cost pressure, some factories may stop production. The absolute price will weaken to a low level. Longzhong predicts that the transaction center of the butyl acetate market will continue to move downward next week, and pay attention to the arbitrage window between regions.