Glacial Acetic Acid Market Increased Significantly in Sept
The glacial acetic acid market continued increasing in September. Up to September 30, the closing prices of glacial acetic acid in East China were in the range of RMB 3,460-3,700/mt in tank. The average price in East China was RMB 3,250/mt, which was up 7.85% M-O-M.
Firstly, the glacial acetic acid units in Shandong Hualu-Hengsheng Chemical, Hebei Yingdu and Henan Yongcheng Longyu were unstable, so operating rates were low. However, as the downstream operating rate was low and the demand was light, the glacial acetic acid inventory increased, which still stayed below the normal level. Secondly, as part of glacial acetic acid units in America were influenced by the Harvey, players were bullish about the export market in short term. Thirdly, as the operating rates of acetic ester, vinyl acetate and PTA were up, the demand for glacial acetic acid increased. Although the glacial acetic acid operating rate went up, the inventory was still in a low level. Lastly, as the glacial acetic acid price was in a high level before, downstream users purchased cautiously. The supply was limited from traders and the inventory in downstream users was low. Glacial acetic acid producers were reluctant to sell glacial acetic acid at low prices and continued increasing offers. However, with the coming National Day, players were bullish about the market and downstream users prepared to stock goods in advance, which increased the demand for glacial acetic acid. As a result, the Chinese glacial acetic acid market was in a high level in September.
The glacial acetic acid inventory was low before the National Day and part of suppliers still delivered goods during the National Day. As glacial acetic acid units are unstable, it is predicted that the inventory will increase in glacial acetic acid factories, but the volume will be still limited. A 1,850kt/a PTA unit will take overhaul in the middle of October. One glacial acetic acid unit in Nanjing will take overhaul which will support the glacial acetic acid market. The glacial acetic acid prices will stay in a high level for the third year, so the downstream users will still show resistance to high prices. In general, both bullish and bearish sentiments exist in the glacial acetic acid market. It is predicted that the glacial acetic acid market will fluctuate marginally.
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