China's supply volume hit the market India and Asia acetic acid prices overall weaker

By China's supply of goods greatly increased, downstream terminal demand downturn, import arrival continued to pour in multiple drag, India and Asia acetic acid market pressure downward, even if the region part of the device maintenance and production reduction, it is difficult to reverse the weak pattern, the overall market sentiment is pessimistic.
Mainstream Price Quotes
FOB Asia
CFR Northeast Asia: US $490-640/ton, down US $40/ton month on month
CFR Southeast Asia: US $500-545/ton, down US $10/ton month on month
CFR South Asia: US $470-500/ton, down US $10/ton month on month
china ex-factory spot: 380-430 USD/ton, down 10 USD/ton from the previous month
east China spot range: 2950-3300 yuan/ton, disk basically stable

market Price in India
the price quoted outside India's acetic acid fuel tank dropped to 45-47.5 rupees/kg. Under the background of sufficient import supply, buyers insisted on purchasing as needed and had no intention of hoarding goods. The transaction center of gravity was significantly lower than that in March.
Supply side: China's production capacity release Asian supply easing
at present, the Asian acetic acid market has entered a pattern of oversupply, China's production areas of high inventory, export volume, become the core factor to suppress the regional market.
Intensive changes at the plant level: domestic overhauled enterprises gradually resumed release from the end of May; South China's new acetic acid plant is scheduled to start production in June; South Korea's Lotte Inoex acetic acid plant restarted, Handsome Chemical resumed full load operation.
At the same time, the ZPC unit continued to shut down, the Hualu Hengsheng Hubei acetic acid unit shut down, and the Kimbaud Chemical rotation started and stopped production lines 1 and 2. Local device shutdown hedging is limited, overall supply is still expected to increase, China's export spillover pressure continues to increase.
Demand side: upstream and downstream synchronization downturn deal follow-up weak.

chinese market
domestic acetic acid downstream just need to be flat, derivatives quotes weak, processing enterprise profits narrowed, downstream factories to replenish the stock will be sluggish, mostly to consume existing inventory.

The Indian Market
import sources continue to arrive at the port, the port inventory pressure is obvious, the end buyers wait-and-see mood is strong, only low small single just need to purchase, large quantities of replenishment will not be enough.
Subdivision downstream is also sluggish: VAM by China's supply impact price pressure, coating industry ethyl acetate demand is weak, PTA although the operating rate is high, but the actual end consumption is weak, it is difficult to drive the increase in raw material procurement.
Trade Flow and Industry Status
domestic producers in order to go to the warehouse to increase export bargaining efforts, May west-to-west shipments are still expected to increase, further suppressing prices in India and surrounding Asian markets. Enterprises that rely on external methanol production of acetic acid, due to weak production economy, profit compression, began to readjust the pace of production and operation.
Intra-regional trade in Northeast Asia remained active, affected by local device shortages, power supply fluctuations, and negative operation of some enterprises; supply and demand in Southeast Asia were relatively tight, but it was difficult to offset the overall market bearish sentiment. Japan-related units to maintain low-load operation before the planned transition.

After the market outlook

negative factors
china's supply continues to ramp up, downstream derivatives demand is weak, China's export competition intensifies, and India's import arrivals continue to flow.

Supporting factors
regional device maintenance concentration, Northeast Asia part of the route supply tight, methanol cost pressure under the pressure of some manufacturers have negative expectations.
In the short term, Asia and India acetic acid market is difficult to have a significant recovery, India prices are likely to maintain 45-47.5 rupees/kg range, the upward space is limited. If the market wants to rebound substantially, it needs to wait for the downstream derivatives consumption to pick up, the import volume to fall back, and the terminal industry demand continues to release three conditions to land simultaneously.