Wuxi High Mountain Hi-tech Development Co., Ltd. presents the strategic monthly review for the Glacial Acetic Acid (GAA) market. January 2026 was marked by a volatile pricing structure, beginning with a supply-driven rally followed by a demand-side cooling as the Lunar New Year approached.

1. Market Overview: A Volatile "First High, Then Low" Trend

The Acetic Acid market witnessed a notable surge in early January before correcting toward the end of the month.

• Monthly Index: The average market price for January was 2,569 RMB/ton, up 6.51% MoM.

• Price Movement: By January 27th, the market average sat at 2,578 RMB/ton, representing a modest 2.63% increase from the December closing price, indicating that mid-month gains were partially offset by late-month declines.

2. Strategic Drivers: Inventory vs. Consumption

The market dynamics in January were a tug-of-war between regional supply constraints and downstream resistance:

• The Early Surge: Lower operating rates in Northern China and unplanned maintenance in Hebei province pushed inventories to critical lows, leading to aggressive price hikes in North and Central China.

• The Late Cooling: As the month progressed, the supply-side advantage faded. High spot prices met strong resistance from downstream manufacturers of Acetic Esters and Acetic Anhydride, who shifted to "hand-to-mouth" purchasing strategies. In Western China, heavy snowfall further disrupted logistics, forcing producers to lower quotes to clear stocks.

3. Industry Feedstock & Regional Benchmarks

• Methanol Impact: Raw material (Methanol) prices remained soft due to high port inventories and stable production, providing little cost-push support for Acetic Acid producers.

• Logistical Friction: As the Spring Festival (Lunar New Year) approaches, hazardous material freight rates are rising, further squeezing the profit margins of chemical exporters.

4. Outlook for February 2026: Weakening Momentum

Wuxi High Mountain's analysts expect a cautious February market:

• Supply Expansion: Production facilities in the Nanjing region are expected to resume operations post-holiday, increasing spot availability.

• Demand Contraction: With the majority of downstream factories in the textile and polymer sectors entering holiday mode, consumption will hit a seasonal low.

• Price Projection: We anticipate a further price adjustment of 30-50 RMB/ton as factories deal with post-holiday inventory build-up.

About Wuxi High Mountain Hi-tech Development Co., Ltd.

With over a decade of excellence in the international chemical trade, Wuxi High Mountain is your trusted partner for high-quality Acetic Acid, MCAA, and Caustic Soda. Our expertise in navigating the complexities of the Chinese chemical supply chain ensures stable supply and competitive pricing for our global clients.

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