SunSirs: Insufficient Demand Led to a Downward Trend in the Acrylic Acid Market

https://www.chemnet.com   Aug 28,2024 SunSirs

Price trend

This week, the domestic acrylic acid market has been operating in a range of consolidation. As of August 28th, the benchmark price of acrylic acid in Shengyi Society was 675000 RMB/ton, a decrease of 0.41% compared to the beginning of this month (6775.00 RMB/ton). Upstream raw material propylene has seen a narrow upward trend, with limited cost support. Downstream users are purchasing according to market conditions, resulting in a reduction in domestic spot supply.

Analysis review

In terms of cost

Recently, there has been a narrow consolidation in the propylene market prices, with international crude oil prices rising sharply. There is some positive support for the cost side, and some manufacturers' inventories are at a low level, which to some extent supports the positive attitude of industry players. Currently, it is expected that the propylene market prices will adjust narrowly in the short term, but downstream demand follow-up needs to be closely monitored in the later period. As of August 28th, the benchmark price of propylene in SunSirs was 6946.00 RMB/ton, an increase of 0.81% compared to last week (6890.00 RMB/ton).

In terms of demand

Recently, butyl acrylate has been in a weak operation, and the real estate industry has been in a continuous downturn. The butyl acrylate downstream tape master roll and acrylic lotion industry are difficult to improve, and the contradiction between supply and demand of butyl acrylate is facing further tension. In the first half of the year, the cost of butyl acrylate remained high, and the profits of the industrial chain were concentrated upstream. The price of butyl acrylate was affected by costs and supply and demand. The market average price in the first half of the year was about 9267 RMB/ton, only slightly higher than the same period last year (9234 RMB/ton in the first half of 2023).

Market outlook

The current cost support for the acrylic acid market is still acceptable, according to analysts from SunSirs. However, in the future, the cost pressure on acrylic acid enterprises will increase and the recovery of terminal demand will be slow. The subsequent rise of acrylic acid and esters may be difficult to maintain, and the domestic acrylic acid market will experience narrow fluctuations next week.

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