Market dynamics

This week, the acrylic acid market maintained a steady upward trend. As of April 2nd, the benchmark price of acrylic acid in SunSirs was 7,600.00 RMB/ton, an increase of 0.44% compared to the beginning of this month (7,566.67 RMB/ton). The industry as a whole continued the pattern of tight supply and firm prices, which provided certain support for the price of acrylic acid..

Raw material prices rose

The main raw material of acrylic acid, propylene, has experienced relatively small price fluctuations recently, and there has been no significant upward or downward pressure on the cost side. This provided some bottom support for the price of acrylic acid, but at the same time, it also meant that the cost did not have enough momentum to further push up the current price. As of April 2nd, the benchmark price of propylene in SunSirs was 6,735.75 RMB/ton, a decrease of 0.15% compared to the beginning of this month (6,745.75 RMB/ton).

Supply was tight

The factory  temporarily mainly focused on completing long-term orders signed in the early stage, and the limited release of new production capacity in the short term has led to a continuous tight supply of spot goods in the market. Some factories maintained low inventory levels, further exacerbating the tight supply situation. Attention should be paid to whether any factories have entered planned maintenance or unexpected shutdowns (such as environmental production restrictions), as a decrease in capacity utilization may strengthen supply side conflicts.

Downstream demandwas stable

Acrylic acid was mainly used in the fields of coatings, adhesives, water treatment, etc. Recently, some industries (such as architectural coatings) have limited demand growth due to seasonal factors or end consumer impact; However, demand in high value-added fields such as new energy materials remained resilient.

Due to the high prices, traders and downstream enterprises have weakened their willingness to chase after price increases, and the market was mainly focused on essential purchases, resulting in a decrease in hoarding behavior.

Market outlook

With the rise in acrylic acid prices, market sentiment has been boosted. Some downstream users have started to digest contracts, but the sustained high volatility of prices has also prompted some downstream users to enter the market for replenishment. At the same time, market participants hold a certain optimistic expectation for the future market trend, which has also played a driving role in the rise of acrylic acid prices.

Overall, the recent rise in the acrylic acid market was mainly due to the increase in raw material prices and tight supply. It is expected that the overall price of acrylic acid will be stronger next week, with a floating range of 50-100 RMB/ton. The demand for acrylic acid was relatively flat, and there was some support for raw material prices. Therefore, it is expected that the production of acrylic acid will continue to increase next week, and the mainstream price of acrylic acid in East China is expected to remain stable at 7,500-7,700 RMB/ton.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com