Over the past week (July 24, 2026 – July 30, 2026), the domestic glacial acetic acid (GAA) market registered a weak, downward consolidation. Although regional plant turnarounds and reduced inventory levels offered fundamental support for producer quotations, persistent weakness in downstream demand—coupled with expectations of potential supply expansion as units restart—kept market participants cautious, causing the overall price center to shift slightly lower.

I. Overall Market Performance: Minor Price Recessions and Low-Level Trading

According to latest industry data, as of Thursday:

• National Average Price: The domestic GAA market average settled at 2,941 RMB/ton, down by 27 RMB/ton compared to the same period last week (a weekly decline of 0.91%).

Factory offers remained comparatively firm due to reduced spot inventories. However, traders and downstream buyers generally maintained a watchful stance toward August market prospects, prompting some traders to offer slight concessions to facilitate transactions. Downstream procurement remained limited to rigid, immediate needs, with minimal interest in accepting higher-priced materials, keeping transaction centers anchored at lower levels.

Regional Price References (Ex-Factory / Delivered):

• East China: Shanghai and Jiangsu ex-factory prices ranged from 2,900 to 2,920 RMB/ton (via bank acceptance); Zhejiang ex-factory prices ranged from 2,950 to 2,970 RMB/ton (acceptance).

• Shandong & North China: Shandong ex-factory prices were reported at 3,020–3,050 RMB/ton (acceptance), with local delivered prices around 3,000 RMB/ton. North China ex-factory quotes stood at 2,880–2,900 RMB/ton (acceptance).

• Central & Southwest China: Henan ex-factory prices referenced 2,850–2,890 RMB/ton (acceptance); Hubei ex-factory quotes were at 3,000–3,100 RMB/ton (acceptance); Shaanxi ex-factory prices stood at 2,950 RMB/ton (cash); Southwest delivered prices referenced 3,100–3,150 RMB/ton (acceptance).

• South China: Guangxi ex-factory quotes were at 2,800–2,850 RMB/ton (acceptance); Guangdong ex-factory prices referenced 2,950–3,000 RMB/ton (acceptance).

II. Supply, Demand, and Cost Fundamentals

1. Supply & Inventory: Operating Rates Rise; Salable Stocks Continue to Decline

• Operating Rates & Output: The average operating capacity across the GAA sector rose to 63.17% this week (an increase of 2.06 percentage points week-on-week), yielding a weekly output of approximately 206,500 tons (+3.38% WoW). Previously offline units in Northwest China and Nanjing gradually resumed normal operating loads during the week, while long-term offline facilities remained idle.

• Inventory Dynamics: Following earlier facility maintenance and load reductions, overall salable market inventories fell to approximately 130,900 tons, representing a week-on-week decrease of roughly 13.37%. These reduced stock levels provided manufacturers with necessary leverage to maintain steady opening offers.

2. Costs & Profitability: Methanol Fluctuates Lower; Producer Margins Expand Slightly

• Feedstock Costs: Upstream methanol prices moved lower within a range during the week, with average prices slipping from 2,382 RMB/ton to 2,356 RMB/ton (-1.09%). Nevertheless, methanol continues to provide baseline cost support for acetic acid. The weekly average cost for GAA producers eased slightly to 2,432 RMB/ton (-1.13% WoW).

• Theoretical Margins: Supported by stable producer offers alongside modestly lower raw material costs, theoretical average profits for domestic GAA production rebounded to approximately 530 RMB/ton as of Thursday (+4.28% WoW).

3. Downstream Demand: Off-Season Restraint Prevails

Terminal consumption remains in its off-season, limiting downstream eagerness to pursue higher price quotes. While operating rates for certain derivatives such as ethyl acetate and butyl acetate picked up marginally, total raw material absorption remained modest, offering limited upward momentum for the market.

III. Market Outlook: Prolonged Standoff and Range-Bound Movement

Looking ahead to next week, the domestic GAA market is expected to experience prolonged supply-demand interplay and consolidated price movement, with main transaction prices anticipated to hover between 2,850 and 3,100 RMB/ton.

• Supply Expectations: Select offline or reduced-load plants in Northwest China and Shandong are scheduled to restart next week. If these units resume operations as planned, local spot availability will increase, gradually weakening the support currently provided by tight supply.

• Cost Factor: Upstream methanol is projected to fluctuate within a range amid geopolitical dynamics and ample market supply, rendering significant cost-driven movements unlikely.

• Downstream Behavior: Although operating rates across PTA and specific derivative sectors may fluctuate, overall procurement strategies among end-users will likely remain cautious, sticking strictly to hand-to-mouth buying.

Summary: In the near term, low inventory levels serve as a floor for market prices. However, anticipated supply growth over the medium horizon limits upside momentum. Industry participants should monitor the progress of unit restarts in Northwest China and Shandong, as any delays in startup schedules could prolong local supply tightness and lead to localized price firming.