January 2017 domestic acetic acid month review: weak downward

In January, the domestic acetic acid market fell sharply. As of the end of the month, China to discuss the market in 2750-2950 yuan / ton, the monthly average price of 2893 yuan / ton, down 4.02%, an increase of 49.76%. In mid December acetic acid market prices rose to a high, the downstream purchase mentality turn cautious, in January after the factory shipments more pressure, inventory accumulation, the overall social inventories increased significantly.

Coupled with the arrival of the Chinese Lunar New Year, a large number of downstream acetate factory shutdown, slash of acetic acid and acetic acid during the rigid demand, no parking plan for the Spring Festival, during the Spring Festival to reduce inventory pressure, the factory has a row of library needs to discuss the market focus has shifted. Coupled with the methanol market weakness down, facing the lack of supporting raw material acetic acid acetic acid market, the market continued downward. After the end of intermediaries and downstream users gradually leave, discuss the market reduced market is maintained.

Prediction: the current acetic acid social inventory is high, but the main downstream equipment is gradually resume production, holding cargo shipments increased, industry mentality has improved, but the short-term market supply and demand contradiction difficult to effectively alleviate the situation, coupled with the raw material of methanol market atmosphere instability, acetic acid, short-term there is still narrow downside risk. But with lower production recovery, is expected to ease pressure on the stock factory, acetic acid market atmosphere will be stable.