This week (11.14-18), the price of ethyl acetate in China fell significantly. According to the statistics of the business community, it fell by 0.73% this week, mainly because of the sharp decline of raw acetic acid and the price reduction of major manufacturers, especially the price decline of the main factories in Shandong, which changed from auction to retail, depressed the market confidence, and the weak downstream demand. At the weekend, the market price of ethyl acetate was 6400-6600 yuan/ton.

From the perspective of acetic acid, the domestic acetic acid fell significantly this week. According to the monitoring of the business community, the price of acetic acid fell by 3.07%. The utilization rate of acetic acid market capacity increased during the week. Celanese and Henan Shunda resumed operation within the week. The supply volume increased. The social inventory increased. In addition, the upstream methanol price fell and the cost was weak, which depressed the downstream market mentality. In terms of terminal demand: it is still weak at present, and the market trading atmosphere is general. In order to maintain the rhythm of shipment, the manufacturer has lowered its quotation, and the price trend of acetic acid continues to decline.

From the above figure, the price trend comparison chart of acetic acid and ethyl acetate shows that they are highly correlated, and the recent trend is basically the same. The recent downward trend of acetic acid is more severe than that of downstream ethyl acetate, which is not affected by the improvement of downstream demand. The acetic acid curve shows signs of approaching ethyl acetate, and the downward trend of acetic acid is intensified, which also relieves the cost pressure of downstream ethyl acetate manufacturers.

In addition, from the perspective of ethyl acetate supply, the operating rate of ethyl acetate this week was stable, and the operating rate was flat last week. At present, the operating rate of the industry is about 60%. Major factories in Shandong and Jiangsu maintained normal operation. This week, some manufacturers generally lowered their ex factory prices by about 100 yuan/ton. The manufacturer reduced the price and inventory, which depressed the market confidence. Moreover, the market expectation has turned weak. At present, the supply of ethyl acetate exceeds the demand.

On the demand side, downstream procurement generally slowed down. This week, dealers and downstream factories had weak purchasing intentions. Shandong’s main factories changed from auction to retail, and the deal was not ideal. Downstream orders contracted, leading to a significant slowdown in the speed of goods delivery. The number of transactions in the market is relatively small, and most transactions are at low prices. In addition to some downstream demand for goods preparation, the market as a whole maintains a rigid demand.

Looking at the future market, the ethyl acetate analysts of the business community believe that the current raw material acetic acid is still declining, and the cost is still negative, which does not rule out the possibility that the ethyl acetate will continue to fall next week. The supply and demand side is also difficult to see too much value. The low-end transactions in the market are better than the high-end transactions, so it is expected that the market of ethyl acetate will be weak in the short term.