Glacial acetic acid industry weekly report

This week, glacial acetic acid market prices fell narrowly, with some areas showing relative stability.

At the beginning of the week, corporate inventories continued to rise, but overall trading sentiment varied across regions. In the northwest region, operations were unstable following the delayed restart of plants, resulting in a relatively tight supply. Some supplies from North China and Shandong were gradually flowing into the northwest, resulting in a relatively balanced market in the north. Factories in Central and East China faced significant inventory pressure, but overall supply was sufficient. Low-priced supplies across the region were trading well, while some high-priced orders were trading tepidly.

Currently, the Hubei Hualu plant is undergoing maintenance, while the Henan Shunda plant is expected to shut down. Market supply is expected to decline. We will monitor evolving sentiment across regions.

China Glacial Acetic Acid Weekly Market Analysis
Glacial Acetic Acid prices declined during this period (August 8, 2025 - August 14, 2025, the same below). On Thursday, August 14, the average price of glacial acetic acid in East China was 2,203 yuan/ton, down 15 yuan/ton from last week's average of 2,218 yuan/ton.
Specifically, spot prices in East China fell this period, fluctuating between 2,150 and 2,250 yuan/ton.
Methanol prices in East China have recently fluctuated within a narrow range, but for glacial acetic acid producers sourcing from outside sources, costs remain high. Glacial acetic acid prices declined across all regions during this period, with prices in East China falling slightly by 15 yuan/ton, a decrease of 0.68%, and in North China by 3 yuan/ton, a decrease of 0.13%. Market sentiment is currently mixed, with each region adjusting prices based on supply and demand to encourage shipments.

Major Downstream Capacity Utilization
Capacity utilization for major downstream glacial acetic acid products saw mixed results this week. While several PTA units restarted after prior maintenance, large-scale producers shut down for maintenance and some units experienced temporary outages, leading to a slight decline in overall domestic capacity utilization this cycle. Ethyl acetate production at Jinjiang in Taixing and Anhui Huayi saw load adjustments, while Lier'an and Xintiande units restarted. Ethyl acetate capacity utilization fluctuated little this week. Butyl acetate capacity utilization at Jinjiang in Taixing saw fluctuations in load, leading to an increase this week.

Market Analysis
Ethyl Acetate
This week, the ethyl acetate market saw narrow fluctuations in transaction volume. The lowest price in East China was 5,040 yuan/ton ex-factory, and the highest was 5,055 yuan/ton ex-factory. The weekly average price was 5,047 yuan/ton, up 2 yuan/ton and 0.04 percentage points from last week.

The ethyl acetate market saw divergent trends during the week. Major factories in Shandong maintained stable shipments, while factories in other regions, considering high production costs and easing inventories, saw some price increases. However, significant supply-demand imbalances remained in the industry, with weak demand continuing to dampen overall market enthusiasm. Insufficient downstream purchasing made it difficult to follow through on actual transaction prices, hindering shipments at high prices. Subsequently, some trading partners prioritized freeing up negotiation space to boost orders, resulting in significant inventory pressures at factories, forcing them to offer discounts. However, post-price declines, transaction volume was subpar. Slow destocking efforts at factories, coupled with a lack of support from market news, continued to weigh on market sentiment, keeping prices within a narrow range. Looking ahead to next week, the downstream market for ethyl acetate remains cautious, and slow off-season terminal absorption is expected. Most shipping sentiment remains cautious. Expectations of increased supply continue to weigh on market sentiment, but given the limited margins and limited margin concessions, the ethyl acetate market is expected to remain weak next week, with some areas experiencing further declines.

Butyl Acetate
Butyl acetate prices continued to decline this week. The lowest price in East China was 5,450 yuan/ton ex-factory, while the highest was 5,550 yuan/ton ex-factory. The weekly average price was 5,500 yuan/ton, down 70 yuan/ton from last week and a decrease of 1.26 percentage points month-on-month.
The butyl acetate market continued to fluctuate at a low level this week. Negative factors from both raw materials continued to dampen market sentiment, and news of fluctuations in n-butanol production failed to effectively boost the market, resulting in prices remaining range-bound. Acetic acid prices remained weak, with cost support lacking. The supply-demand imbalance has become increasingly prominent. While the supply side remains stable, domestic demand remains weak due to the off-season, significantly lengthening the procurement cycle. Coupled with downward market expectations, downstream companies are generally adopting a cautious purchasing strategy, focusing on replenishing stocks based on immediate demand. While the fulfillment of export orders has provided some support to local market sentiment, factories are still prioritizing volume shipments, leaving the overall market under pressure.

Next week, the butyl acetate market outlook remains subdued. This is due to overdue upstream supply, weak downstream demand, and a lack of fundamentals and insufficient raw material support, which has led to a decline in market appetite. Longzhong predicts that butyl acetate market prices will remain weak next week, with attention focused on the timing of supply resumption.

Next Market Outlook

Glacial acetic acid supply is expected to decline, while demand is expected to increase. Market supply may decline slightly, while demand may increase slightly. However, corporate inventories are likely to remain high. Regions are expected to remain mostly stable next week, but some areas may see narrow declines.

Key Focus: 1. Supply: Shunda may experience shutdowns next week. Keep an eye on the commissioning progress of Zhejiang Petrochemical's units. Barring any unexpected failures at other units, capacity utilization is expected to decline.
2. Demand: PTA

Domestic PTA plants are unlikely to adjust their production next week due to the restart of several units this week and the stable operation of new units. Overall, production will continue to increase. Ethyl acetate capacity utilization may increase next week with the Guangxi Xintiande unit operating normally and the Southwest ethyl acetate unit scheduled to restart. Butyl acetate capacity utilization may continue to rise with plans to restart major Shandong units next week. Overall, vinyl acetate capacity utilization will remain relatively stable. 3. Cost side: According to the theory of start-up and shutdown of upstream and downstream equipment, the supply and demand data as a whole show a positive expansion. The expectation of oversupply under the pressure of high inventory and the possibility of supply contraction caused by geopolitical risks and maintenance are unlikely to reverse the overall weak pattern.