Last week, due to the strong demand for acetic acid in China, the acetic acid market in Asia has changed. However, the real upward trend of the market may have to wait until the end of the third quarter and the beginning of the fourth quarter, that is, the peak demand for vinyl acetate monomer (VAM), the main derivative of acetic acid. After the bull market in the first and second quarters, Asian acetic acid prices fell all the way in August due to weaker demand.
Since some equipment will be overhauled in August and September, manufacturers are bullish on the 3Q and 4Q prices. Celanese has already shut down Singapore's 500,000 tons/year acetic acid plant and is expected to stop working for two weeks. Daqing Petrochemical's 70,000 tons/year plant has also been shut down since early August to begin overhaul. Shanghai Wusong’s 250,000-ton/year acetic acid plant was also shut down for a two-week overhaul last week; Nanjing Yangtze Petrochemical’s 70,000-ton/year plant is scheduled to be shut down for maintenance in September.
However, after the planned production of the 200,000-ton/year plant in Tengzhou, Shandong Province, and the 300,000-ton/year plant of Formosa BP Chemical Company, which is scheduled to start production at the end of August, it may have a certain impact on the market supply.
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