It is difficult to push raw materials up acetate prices

Shandong Hualu Hengsheng Chemical Co., Ltd. Market Director Qi Xiaofeng introduced that from August 5, raw material methanol prices rose by 300 yuan to 2,500 yuan factory price, pulling the acetic acid market price synchronization at least rose by 100 yuan. With regard to the rise in acetic acid prices, Qi Xiaomei said that the market is now accepting too slowly, far from the desire of most companies, because most acetic acid production companies are currently operating on the cost line and urgently need to raise prices to reduce losses.

Talking about the trend of the price of acetic acid in the future, Qi Xiaofeng thinks it is hard to be optimistic. First of all, excess capacity has restricted prices. In 2008, the production of acetic acid in China was about 2,603,900 tons, and in 2009 it surged to 3.122 million tons. In the first half of this year, the domestic production of acetic acid reached 1.952 million tons, a year-on-year increase of 40.9%. By the end of this year, domestic acetic acid production will be close to 4 million tons, production capacity will exceed 6 million tons, while domestic consumption will remain at 350-360 million tons, excess production capacity will be 40%, and 500,000 joint ventures between BP and Sinopec in Nanjing The tons/year acetic acid plant will be released to the market in September. Acetic acid is a popular product. There is not much difference between each group. This will inevitably bring about price competition. From the downstream market demand, the market demand for vinyl acetate, PTA deserted, ethyl acetate operating rate was only 50%, chloroacetic acid operating rate is also low. Downstream delivery stability remained depressed, and the acetic acid market price continued to fluctuate at a low level, taking a weak supply.

In fact, in December last year, the price of acetic acid continued to rise sharply, and the increase reached 500 yuan, but it did not take long for the price to fall again. Qi Xiaofeng thinks this is because the methanol production capacity is excessive, but the installations are often under-employed. In a certain period of time, there may be tight supply and rising prices.

Yan Yuyuzhu, vice minister of marketing of Yankuang Coal Supply and Marketing Co., Ltd., said that the rise in upstream methanol prices has driven the rise in the price of acetic acid. With the reduction in social inventories, the market price naturally rises. He believes that the golden period of the acetic acid market has passed and is now entering a period of competition. It is impossible to reach the high of 7,000 to 8,000 yuan in the past. The rational price should be between 3,400 and 3,600 yuan.

Sun Jianzhong, deputy general manager of Henan Shunda Chemical Technology Co., Ltd. pointed out that after the price rise, some devices that do not exert production capacity are bound to re-drive, and the market's spot volume increases, causing the price to fall. Therefore, the price increase will not last long. In addition, new equipment was put into operation in September, which caused downstream users to wait and see and purchase carefully.