SunSirs: There Was a Strong Atmosphere of Wait-and-see in the Market, and the Acrylic Acid Market Was Operating Steadily

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 29th, the benchmark price of acrylic acid in SunSirs was 7,533.33 RMB/ton, a decrease of 0.44% compared to the beginning of this month (7,566.67 RMB/ton).

Analysis review

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.

Propylene trend: As the core raw material of acrylic acid, propylene prices have been fluctuating downward recently. As of April 29th, the benchmark price of propylene in SunSirs was 6,638.25 RMB/ton, a decrease of 1.59% compared to the beginning of this month (6,745.75 RMB/ton).

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.

The cost of propylene accounts for 60% -70% of the total cost of acrylic acid. The decline in propylene prices directly weakened the cost support of acrylic acid, theoretically opening up downward space for acrylic acid prices. However, as of April 29th, the acrylic acid market was experiencing a weak balance between supply and demand, and prices had not kept pace with the decline, resulting in a slight recovery in corporate profit margins.

Market outlook

In summary, the acrylic acid market is in a bi-directional squeezing stage of "cost weakening+flat demand", with short-term or sustained price fluctuations. 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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