Acetic Acid Prices Plunging Again in the Chinese Market

Tianjin, China: After a week of price surge, the Acetic Acid value started slumping again in China's domestic market. Amidst several uncertainties in the global market and multiple shutdowns of Acetic Acid manufacturing plants in China, a significant decline in Acetic Acid prices was unexpected. However, the market for Acetic Acid has been plunging for the last week. Destocking available inventories are the primary reason behind the price drop of Acetic Acid in China.

Because of various disruptions in the supply chain and weak demand from downstream, the Acetic Acid stocks were piling up in the warehouses. As the second quarter of 2022 ended, manufacturers are now in a hurry to clear out their stocks to start their production for the next quarter. To get rid of the abundant reserves, manufacturers are not minding selling their products at a lower cost. Consequently, the market value of Acetic Acid has been decrementing in the regional market.

Furthermore, the manufacturing unit Yangtze INEOS shut its plant on July 5 but reopened it on July 8, enhancing the supply flow of Acetic Acid in the country. Besides, Celanese Nanjing, which shut down on May 28, restarted its manufacturing on June 22, further contributing to the escalating supply of Acetic Acid. In addition, another manufacturing unit Sinopec Great Wail Energy, which was on shutdown from June 19, reopened its unit on June 28. Meanwhile, the downstream demand was weak from the textile, dyes, and pharmaceutical industries.

As per ChemAnalyst anticipations, "The Acetic Acid price value would decrease for few more days until the stockpiles get cleared from the inventories, after that the prices might start increasing when the new productions will get initiate. There is a high chance that the prices of Acetic Acid derivatives such as Ethyl Acetate, Butyl Acetate, And Acetic Anhydride would escalate along with it.