Recently, with the shutdown of all the ethyl acetate plants in Lunan, the domestic start-up level continues to decline. It is currently running around 43% and is expected to rise to around 60% by the end of the month. Supply is higher, raw material support is weakened, and market confidence is insufficient...
As shown in the figure above, in July, the price of ethyl acetate rose. First, it was supported by the rise in raw materials acetic acid and ethanol. Second, there were many news of negative parking of equipment in the field, resulting in a sharp drop in supply. Traders prepared goods in advance, which significantly improved the domestic price center of gravity. Near the end of the month, the price of ethyl acetate rose again. The reason for this increase was supply side restrictions, especially the Lunan chemical plant was stopped for some reason, which obviously supported the market. However, looking at the market outlook, the market continued to rise and the storage capacity was insufficient, and the consumption speed was relatively fast. In detail:
The demand side has not changed much. Under the influence of the traditional high temperature off-season, the market is mostly cautious and rigid demand. In addition to the early expected advance stocking of the market, most of the time the mentality is average. The supply side changes in previous years have a great impact on the price. This year's increase is relatively cautious. After the price is high, the end point acceptance is not high.
In summary, the weakening of raw materials and the improvement of the supply side have led to a negative market atmosphere. However, due to the current low profit operation of ethyl ester, the decline range is limited. It is still necessary to pay attention to the impact of cost changes. In the long run, the pressure is high, and there is room for decline.
