Price trend

This week, the average price of acrylic acid in the mainstream national market has shown an upward trend recently. As of March 18th, the benchmark price of acrylic acid in SunSirs was 7,475.00 RMB/ton, an increase of 0.33% compared to last week (7,450.00 RMB/ton).

Analysis review

The operating level of the acrylic acid industry remained at around 70% this week, a decrease from the previous week. This was mainly due to some acrylic acid units undergoing maintenance or load reduction production. For example, the acrylic acid plant at Shanghai Huayi Caojing Base continued to undergo annual maintenance, while the acrylic acid plant at Ningbo Formosa Plastics maintained a medium to low level of operation. The acrylic acid plant at Shandong Kaitai Petrochemical's new plant was operating normally, but the old plant is expected to shut down for maintenance near the end of December. The maintenance and load reduction of these devices have led to a decrease in the supply of acrylic acid.

In addition, changes in the price of raw material propylene have also had a significant impact on the market price of acrylic acid. Propylene is the main raw material for the production of acrylic acid. When the price of propylene rises, the production cost of acrylic acid also increases, which in turn drives up market prices. This cost driven price increase mechanism is particularly evident in the acrylic acid market. As of March 18th, the benchmark price of propylene in SunSirs was 6,910.75 RMB/ton, an increase of 1.43% compared to the beginning of this month (6,813.25 RMB/ton).

Market outlook

Looking ahead to the future, it is expected that the acrylic acid market will continue to maintain a strong operating trend. On the one hand, there are still issues with the shutdown and maintenance of supply side equipment, and the supply of spot goods is becoming increasingly tight; On the other hand, the intention of companies to push up their offers is still strong, and the social inventory of spot goods is limited. Under the combined action of these factors, the price of acrylic acid market will continue to rise. However, it should also be noted that the slow follow-up speed of downstream demand and the sales pressure of holders may have a certain impact on the market. Therefore, the specific increase needs to pay attention to the increase in market demand and downstream industry orders.

In summary, the continued upward trend and strong operation of the acrylic acid market this week are mainly due to tight supply. The future market trend still needs to closely monitor changes in supply and demand relationships as well as the dynamics of upstream and downstream industrial chains.

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