January 13th — Recently, the 1.5 million tons/year acetic acid project at the Juzhengyuan (Jieyang) New Materials Base has officially entered the trial production phase. This project utilizes methanol and carbon monoxide as raw materials, producing acetic acid through a low-pressure carbonylation reaction catalyzed by a rhodium-based catalyst.
Chempricehub Analysis:
Methanol, Bull-Bear Score: 1.5
The project uses methanol as a raw material to produce acetic acid, with an annual demand of approximately 1.5 million tons. This significantly increases methanol demand, benefiting both spot and futures prices. The main methanol futures contract 2605 (Zhengzhou Commodity Exchange) recently closed at 2,263 yuan/ton, with active trading. The anticipation of new demand may drive prices higher, particularly supporting longer-term contracts.
Acetic Acid, Bull-Bear Score: -1.5
The project’s annual production capacity of 1.5 million tons of acetic acid entering the trial production phase will add new supply, increasing market pressure and exerting significant downward pressure on spot prices, potentially leading to price declines. Changes in the supply-demand balance will likely suppress short-term price rebounds.
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