Industry chain product market fluctuation analysis
The price of domestic acetic acid market increased this week. The market price of ethyl acetate increased this week. Butyl acetate market prices fluctuated in a range this week.
The downstream profits of glacial acetic acid were mixed this week.
In the glacial acetic acid market this week, there were many unexpected device failures, and factories pushed up sharply, which led to a better market trading atmosphere. Therefore, corporate profits followed the price.
Due to the reduction in supply, the price of ethyl acetate has increased along with the price of raw materials, and profits have increased simultaneously;
Butyl acetate’s profit growth lacked momentum, raw material prices rose, and profits declined.
Glacial acetic acid
This week, the domestic glacial acetic acid market price mainly increased. At the beginning of the week, as corporate inventories dropped to historically low levels and there were many unexpected device failures, corporate capacity utilization declined rapidly, resulting in tight supply of salable goods in some areas. Factories continued to push up the market, and the trading atmosphere in the northern region was good. In the south; around mid-week, the atmosphere of traders and downstream just-demand replenishment gradually weakened, and new long-term contracts were about to be added. Some companies successively sold long-term contracts for next month. Early maintenance equipment gradually returned to normal operation. The market continued to rise and lacked momentum to maintain stable operation.
As of January 22, the inventory of domestic acetic acid companies this week was approximately 88,200 tons, a month-on-month decrease of 20.02%.
The inventory of glacial acetic acid in this period continues to decline. At present, the inventory has fallen to a low level again. The factory mainly has multiple tank bottoms. Recently, due to the improvement in the market sentiment for purchasing goods, especially in the northern region, some downstreams are gradually stocking up. The tentative increase in factories has led to an improvement in the market sentiment for purchasing goods. , and recent factory failures have been frequent, and the overall supply continues to decline, resulting in a reduction in the factory’s available sales. It is expected that corporate inventories may remain low in the short term.
Ethyl acetate
The market price of ethyl acetate increased this week. It increased by 191 yuan/ton from last week and increased by 2.98 percentage points from the previous week.
At the beginning of the week, the market price of ethyl acetate continued to rise last week. The price of raw material acetic acid continues to push up, and the cost side strongly supports the buying enthusiasm of industry players. Subsequently, boosted by the news of temporary production cuts by large factories in Shandong, downstream and traders were enthusiastic about chasing prices, and the price increases also increased significantly. Some factories suspended sales, and new orders were actively traded in the market, which led to a mismatch between supply and demand to a certain extent. By then, the load of individual factories in East China will remain high due to the successive execution of export and domestic sales orders. However, as the holiday season approaches, downstream willingness to purchase in large quantities is not obvious, and consumption is showing a clear weakening trend. Most early orders are in the execution state, and buyers are slow to follow up, giving priority to shipments.
Looking at next week, the supply side will gradually recover upwards, while the downstream demand is under pressure, and the supply and demand performance cannot match. The upstream may continue to maintain low inventory operations to reduce the risk of inventory accumulation during the holidays. However, considering that upstream acetic acid prices are running at high levels, the bottom price is supported to a certain extent. It is expected that the market price of ethyl acetate will fall next week.
Butyl acetate
Butyl acetate market prices fluctuated in a range this week. It dropped 30 yuan/ton from last week and dropped 0.37 percentage points month-on-month.
At the beginning of the week, the price of raw material acetic acid was stable and continued to rise. The n-butanol market is operating at a high level, and both raw materials are showing strong trends. Under its support, the butyl acetate market has been stable and has risen within a narrow range, but the follow-up of buying orders is not significant. The main demand is follow-up. The overall improvement is limited, and the mainstream negotiated price is on the low end. Afterwards, the price of raw material n-butanol weakened. Some industry players were bearish on the market outlook based on changes in cost. In addition, downstream holidays in some areas have led to a significant reduction in downstream consumption. The purchasing sentiment in the market is not yet positive, although the current upstream operations are generally open. In terms of relatively weak demand, the supply side is still sufficient, and some factories still have inventory for sale. The market mainly executes early orders, and few new orders are transacted.
Looking at next week, the dual raw materials may remain in a volatile state, the news is not good enough, and the market supply is abundant, while the downstream demand is flat, most of them are delisted and inventory is consumed, and new orders are relatively difficult to complete. It is believed that due to the suppression of demand, the market price of butyl acetate may fluctuate.
Post time: Jan-26-2024