SunSirs: Downstream Followed up on Demand, and Acrylic Acid Market Continued to Rise
November 06 2024 10:27:16 SunSirs (John)
The recent supply and demand pattern of the acrylic acid market is an important factor affecting its price trend. This week, the supply and demand pattern of the acrylic acid market remained tight, which was one of the main reasons driving its price upward.
Price trend
As of November 5th, the benchmark price of acrylic acid in SunSirs was 6,850.00 RMB/ton, an increase of 0.18% compared to the beginning of this month (6,837.50 RMB/ton). The negotiation intention for the price of acrylic acid in the East China market was around 6,600-6,650 RMB/ton, while the price in the South China market was around 6,650-6,700 RMB/ton, both of which had increased by 50 RMB/ton compared to the beginning of the month. This upward trend was consistent with the continuous push up of the previous market situation, indicating the strong momentum of the acrylic acid market.
Market supply and demand situation
Supply side: Recently, some enterprises had resumed work, supplementing local sources of goods and easing the local supply shortage. However, due to the rise in prices of raw materials such as acrylic acid and propylene, the production costs of some manufacturers had increased, resulting in a certain impact on market supply. Nevertheless, the overall supply side remained stable, providing sufficient support for the market.
Demand side: The downstream industry maintained stable growth in demand for acrylic acid. With the economic recovery and the increase of industrial production activities, the demand for chemical raw materials such as acrylic acid in downstream industries was gradually increasing. However, due to price increases, some downstream companies may adopt a wait-and-see attitude and replenish as needed, rather than stockpiling in large quantities.
Raw material cost
The price of propylene, the raw material for acrylic acid, had also risen recently, which had increased the production cost of acrylic acid. In order to maintain profit levels, some production enterprises had to reduce supply or increase prices, further pushing up the market price of acrylic acid. The rise in raw material costs was also one of the important reasons for the continued upward trend of the acrylic acid market this week. As of November 5th, the benchmark price of propylene in SunSirs was 6,843.25 RMB/ton, an increase of 0.85% compared to the beginning of this month (6,785.75 RMB/ton).
Market sentiment
With the rise in acrylic acid prices and the intensification of market supply and demand contradictions, the market atmosphere had become more active. Some downstream enterprises began to actively stock up to cope with potential supply shortages in the future. At the same time, some investors had also begun to pay attention to the acrylic acid market and seek investment opportunities. The active market atmosphere and active participation of investors had further promoted the upward trend of the acrylic acid market.
Market outlook
Price trend: Under the favorable guidance of supply and demand combined with cost, the price of acrylic acid in the market is expected to continue to rise. However, as prices continue to rise, downstream companies' acceptance may be limited, so price increases may gradually slow down.
Market mentality: There is a strong bullish atmosphere within the market, but a wait-and-see mentality is gradually emerging downstream. Some downstream enterprises may adopt more cautious procurement strategies to cope with the risks brought by price fluctuations.
In summary, the continued upward trend in the acrylic acid market this week was the result of multiple factors working together. In the foreseeable future, the supply-demand imbalance in the acrylic acid market will continue to exist and may affect its price trend. Investors and downstream enterprises need to closely monitor market dynamics and price changes in order to adjust their investment strategies and procurement plans in a timely manner.
If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.
