In May, under the influence of multiple factors in China's ethyl acetate market, prices rose and fell, and the industry's profit space expanded. According to the calculation and statistics of Zhuochuang Information, the average theoretical gross profit of ethyl acetate production in East China in May was about 524 yuan/ton, an increase of 432 yuan/ton compared with April, and an increase of 747 yuan/ton compared with the same period in 2021. In June, the industry's profit is expected to narrow due to the drag of supply and demand.
In May, although the load of some main plants in East China has increased and the output has increased, the overall output of ethyl acetate in China is still significantly reduced compared with April due to the shutdown and maintenance of the Lunan plant. According to the statistics of Zhuochuang Information, the total output of ethyl acetate in China in May was about 152,000 tons, a decrease of about 10,000 tons from April, a decrease of about 6.6%; the overall start-up load of the industry was about 45%, a decrease of 4.8 percentage points from April.
In May, despite the wide increase in the price of acetic acid and the high price of alcohol, ethyl acetate was supported by supply, and the value of the industrial chain was still effectively transmitted.
In terms of glacial acetic acid, as the domestic glacial acetic acid price fell to near the cost line at the end of April, the bearish mentality of most industry players has weakened. The news that multiple sets of devices are scheduled to be overhauled after Labor Day further boosted the glacial acetic acid market atmosphere, causing prices to rise widely within the month. According to Zhuochuang Information data, the average price in East China in May was about 4,948 yuan/ton, up 4% from April.
In terms of alcohol, raw materials were well supported during the month, but the supply and demand side performed poorly, and the overall price fluctuation was limited. According to Zhuochuang Information data, the average price of alcohol in northern Jiangsu was about 7,407 yuan/ton in May, up 1% from April.
And ethyl acetate, the production and sale of Shandong Yankuang plant was reduced at the beginning of the month. Driven by the sharp decrease in spot resources and the centralized replenishment of downstream after the May Day holiday, the market price rose rapidly and broadly. Although the price was pulled back by demand in the later stage, the overall price rose significantly compared with April. According to Zhuochuang Information data, the average price of ethyl acetate in Jiangsu in May was about 8634 yuan/ton, an increase of 8% compared with April.
Entering June, in the short term, although the cost side is supported, supply and demand have a certain drag on the market, and prices are expected to fall. In the later stage, with the restart of the Yanmining plant, the market supply pattern will change again, and with the weakening of the support role of the glacial acetic acid supply side, the cost side of ethyl acetate is also weak. The overall market may not improve, and the industry's profitability is expected to shrink significantly.
