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 remains tight, which is one of the main reasons driving its price upward.
1、 Market price trend
As of November 5th, the benchmark price of acrylic acid in Shengyi Society was 6850.00 yuan/ton, an increase of 0.18% compared to the beginning of this month (6837.50 yuan/ton). The negotiation intention for the price of acrylic acid in the East China market is around 6600-6650 yuan/ton, while the price in the South China market is around 6650-6700 yuan/ton, both of which have increased by 50 yuan/ton compared to the beginning of the month. This upward trend is consistent with the continuous push up of the previous market situation, indicating the strong momentum of the acrylic acid market.
2、 Market supply and demand situation
Supply side: Recently, some enterprises have 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 have increased, resulting in a certain impact on market supply. Nevertheless, the overall supply side remains stable, providing sufficient support for the market.
Demand side: The downstream industry maintains 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 is 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.
3、 Raw material cost
The price of propylene, the raw material for acrylic acid, has also risen recently, which has increased the production cost of acrylic acid. In order to maintain profit levels, some production enterprises have had to reduce supply or increase prices, further pushing up the market price of acrylic acid. The rise in raw material costs is 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 Shengyi Society was 6843.25 yuan/ton, an increase of 0.85% compared to the beginning of this month (6785.75 yuan/ton).
4、 Market atmosphere
With the rise in acrylic acid prices and the intensification of market supply and demand contradictions, the market atmosphere has become more active. Some downstream enterprises have begun to actively stock up to cope with potential supply shortages in the future. At the same time, some investors have also begun to pay attention to the acrylic acid market and seek investment opportunities. The active market atmosphere and active participation of investors have further promoted the upward trend of the acrylic acid market.
5、 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 is 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.
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