Price trend

This week, the demand for acrylic acid in major downstream industries such as coatings, adhesives, textile auxiliaries, etc. has not shown significant improvement. Affected by the global economic slowdown and weak demand in the terminal market, these industries have maintained low procurement volumes for acrylic acid, resulting in sustained pressure on the demand side of the acrylic acid market. As of March 11th, the benchmark price of acrylic acid in SunSirs was 7650.00 RMB/ton, a decrease of 0.65% compared to the beginning of this month (7,700.00 RMB/ton).

Analysis review

The weak demand for acrylic acid in overseas markets, coupled with increased trade barriers and logistics costs, posed significant challenges to China's acrylic acid exports. The export volume of acrylic acid continued to decline, further exacerbating the oversupply in the domestic market.

In recent years, the acrylic acid industry has experienced rapid capacity expansion, leading to a significant increase in market supply. Although some manufacturers have chosen to lower their operating rates due to profit pressure, overall production capacity was still surplus, and market supply pressure remained significant.

Due to sluggish demand and oversupply, inventory in the acrylic acid market continued to rise. Market inventory remained at a high level, putting significant pressure on market prices.

This week, the prices of major raw materials such as propylene for acrylic acid have risen, leading to an increase in the production cost of acrylic acid. However, due to weak market demand, the price of acrylic acid did not rise as a result, but continued to decline due to oversupply. As of March 11th, the benchmark price of propylene in SunSirs was 6,920.75 RMB/ton, an increase of 1.58% compared to the beginning of this month (6,813.25 RMB/ton).

The fluctuation of energy prices also had a certain impact on the production cost of acrylic acid. The international oil prices and other energy prices fluctuated greatly, but overall they were on a downward trend, which put certain pressure on the price of acrylic acid in the market.

Due to factors such as sustained weak demand, oversupply, and weakened cost support, the acrylic acid market sentiment this week was generally pessimistic. Market participants held a cautious attitude towards the future market, with most choosing to wait and see or purchase on demand, leading to a continued decline in market prices.

Looking ahead, the acrylic acid market will still face significant challenges. On the one hand, the recovery of the demand side still takes time, and the uncertainty of the global economic situation and terminal market demand will continue to affect the trend of the acrylic acid market; On the other hand, pressure on the supply side will continue to exist, with capacity expansion and high inventory levels continuing to exert pressure on market prices. Therefore, it is expected that the acrylic acid market will continue its downward trend in the short term, but the long-term trend still needs to pay attention to the global economic situation, downstream demand changes, and supply side adjustments.

Market outlook

In summary, the acrylic acid market continued its downward trend this week, mainly influenced by factors such as sustained weak demand, significant supply pressure, weakened cost support, and pessimistic market sentiment. The future market trend still needs to pay attention to changes in various factors.

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