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From May 29 to June 27, 2025, the domestic methyl acetate market in China exhibited a fluctuating trend, moving from stability to decline, followed by a moderate rebound. The average monthly price was RMB 3,382/ton, representing a slight increase of RMB 12/ton (up 0.35%) compared to the previous month. As of late June, transaction prices ranged between RMB 3,000 and 3,700/ton.
In early June, sluggish demand led to sales difficulties for holders, prompting inventory buildup and downward pricing across regions. However, even as prices dropped to relatively low levels, downstream demand failed to improve noticeably, keeping transactions sluggish and market sentiment cautious.
Mid-month, rising geopolitical tensions in the Middle East led to a sharp rebound in crude oil prices, which positively impacted demand from the blending fuel sector and subsequently boosted interest in methyl ester products. Toward the end of June, increased export orders reduced inventories at some factories. Traders became reluctant to sell at lower prices, and quotations gradually rose. Downstream buyers responded with increased inquiries, and transaction volumes grew.
However, by late June, as tensions in the Middle East eased and downstream players relied on earlier stockpiles, spot transactions weakened, and price growth lost momentum. Some factory offers even started to retreat slightly.
In June, supply remained relatively stable, though with several disruptions: short-term halts at plants in Ningxia and Jiangsu, a maintenance shutdown in Shaanxi, and steady production in Henan. Meanwhile, new production lines in Hunan and a 10,000-ton/year unit in Shaanxi entered the market. Total methyl acetate production was estimated at 72,300 tons, up 3,900 tons from the previous month. The industry’s operating rate rose to approximately 48.87%, an increase of 4.93% month-on-month.
Downstream demand remained weak throughout most of June. Even lower prices failed to stimulate purchasing enthusiasm in early June. Later in the month, macroeconomic factors and rising crude prices drove up demand from the blending fuel segment, especially in Central and Northwest China. However, East China downstream users were less receptive to the rising prices. Traditional solvent-related sectors continued to buy based only on immediate needs.
In June, average acetic acid prices stood at RMB 2,394/ton, down 1.72% from May. Methanol prices averaged RMB 2,043.32/ton, down 3.96% month-on-month and 7.92% year-on-year. With feedstock prices declining and methyl acetate prices inching upward, theoretical profit margins for the methyl acetate industry improved to RMB 59.09/ton—an increase of 66.45% compared to the previous month.
Feedstock Projections:
Acetic Acid: Despite upcoming new capacity, the market remains oversupplied. End-user profit margins are thin, and pessimism persists. Prices are expected to decline slightly by RMB 0–50/ton.
Methanol: While supply may tighten due to plant shutdowns in Northwest China, demand is also expected to weaken due to seasonal slowdowns and lower downstream operating rates. Methanol prices may fluctuate mildly (RMB 30–60/ton).
Crude Oil: Geopolitical uncertainty around U.S.-Iran negotiations, OPEC+ output decisions, and trade policies could pressure oil prices. WTI is forecasted to move between $62–69/barrel, while Brent may range from $65–72/barrel.
Supply & Demand Dynamics:
In July, temporary shutdowns in Shaanxi and Ningxia may support prices slightly. However, the potential commissioning of new capacity in Hubei could add significant supply pressure. On the demand side, sentiment remains cautious with little positive momentum from end users.
Looking ahead, July may see downward pressure on methyl acetate prices due to weak demand, cost-side softness, and new supply capacity. If new production units launch as scheduled, prices could reach new lows. If delayed, the market may enter a phase of low-level volatility.
High Mountain Chemical will continue to monitor developments in feedstock markets, plant operations, and geopolitical events to provide clients with timely updates and reliable analysis.
For further inquiries:
Phone: +86 133 8222 3993
Email: harold@high-mountain.cn
Website: www.high-mountain.cn
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