This week, the domestic acrylic acid market as a whole showed a stable and weak operating trend dominated by supply and demand, lacking obvious directional driving. The most prominent feature of the market is the downward shift of the price center of gravity. As of November 26th, the benchmark price of acrylic acid in Shengyi Society is 6150.00 yuan/ton, which has fallen by about 5% compared to the high of 6500 yuan/ton in the early part of this month.
1. Supply side:
The stable operation of the market is mainly due to stable supply. The facilities of major manufacturers such as Wanhua Chemical and Shanghai Huayi have reported normal operation. Adequate supply ensures market supply and eliminates the expectation of price increases caused by shortages, resulting in a lack of upward momentum in the market.
2. Demand side:
In the absence of supply, downstream demand performance is relatively flat and has not formed an effective driving force. This has also led to a cautious operating mentality among market participants, with a focus on on-demand procurement and a weak willingness to hoard or chase after price increases. According to the data from Shengyi Society, the current price is also relatively low this year, reflecting this cautious market sentiment.
3. Cost side:
As of November 26th, the benchmark price of propylene in Shengyi Society was 6098.25 yuan/ton, an increase of 0.66% compared to the beginning of this month (6058.25 yuan/ton). Directly raising the production cost of acrylic acid has reduced the willingness of producers to sell at a lower price, as profits have already been compressed. The cost provides a solid ‘floor’ for the price of acrylic acid, preventing a significant decline.
Overall, it is expected that the acrylic acid market will continue to fluctuate narrowly and remain stable in the short term.
Limited upward space: Due to sufficient supply and no significant surge in demand, it is difficult for prices to gain strong upward momentum.
There is support for the downward trend: On the other hand, the current price is at a stage low, and the profit margin of production enterprises is compressed. Factors such as raw material costs will form a certain bottom support, limiting the space for further significant price declines.
In summary, the current acrylic acid market is a typical stable market with weak supply and demand. In the absence of significant news stimulation, this stalemate may continue for some time.