Price trend

The market price of acrylic acid has fluctuated within a small range recently, showing a slight upward trend. This may be due to the intensification of the game between supply and demand, the slowdown of downstream procurement pace, and the contraction of market trading volume. As of April 9th, the benchmark price of acrylic acid in SunSirs was 7,833.33 RMB/ton, an increase of 3.52% compared to the beginning of this month (7,566.67 RMB/ton).

Analysis review

Weak supply-demand balance:

Supply side: The operating rate of domestic acrylic acid factories remained stable, and some enterprises adjusted their loads due to cost pressures, but there was no significant oversupply overall.

Demand side: Downstream industries such as coatings, adhesives, and water treatment had weak demand, dragged down by slow macroeconomic recovery and weak demand in some end industries (such as real estate and infrastructure). Enterprises mainly purchased on demand, lacking the motivation to stockpile goods.

Price trend of propylene: As the core raw material of acrylic acid, propylene prices have been fluctuating downward recently. As of April 9th, the benchmark price of propylene in SunSirs was 6,723.25 RMB/ton, a decrease of 0.33% compared to the beginning of this month (6,745.75 RMB/ton).

The impact on acrylic acid: The cost of propylene accounts for 60% -70% of the total cost of acrylic acid, and the decline in propylene prices directly weakened the cost support of acrylic acid, theoretically opening up downward space for acrylic acid prices. However, the acrylic acid market was experiencing a weak balance between supply and demand, and prices have not kept pace with the decline, resulting in a slight recovery in corporate profit margins.

Market outlook

In summary, the current acrylic acid market was in a bi-directional squeezing stage of "cost weakening and flat demand", and the price may continue to fluctuate within a certain range in the short term. It is necessary to closely monitor the trend of raw material propylene and the marginal changes in downstream demand to prevent periodic market fluctuations caused by supply-demand imbalance.

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