Price trend

Affected by supply and demand, acrylic acid market prices continued to decline last week. Specific price figures might vary by region and specification, but the overall trend was downward. On July 29th, the benchmark price of acrylic acid of SunSirs was 6,750.00 RMB/ton, down 5.81% from 7,166.67 RMB/ton at the beginning of the month.

Supply side

Recently, acrylic acid production plant utilization has remained stable, indicating that market supply has not been reduced due to production issues. However, this may also lead to a gradual accumulation of finished product inventories in the market.

Despite stable production plant utilization, finished product inventories in the acrylic acid market were being reduced. This may be due to a rebound in downstream demand or manufacturers implementing appropriate inventory management measures. However, the pace of inventory reduction may still be insufficient to prevent market prices from falling.

Propylene prices remained low, weakening cost support and increasing room for price reductions. As of July 29, the benchmark price of propylene of SunSirs was 6,413.25 RMB/ton, down 4.58% from 6,720.75 RMB/ton at the beginning of the month.

Demand Side

Weakened downstream industries: Weak demand in end-use sectors (such as coatings, adhesives, and textiles), particularly in the construction and automotive sectors, has led to subdued purchasing appetite. Export constraints: Shrinking overseas demand or trade barriers (such as anti-dumping) could curb exports, exacerbating domestic oversupply.

Market outlook

The domestic acrylic acid market is expected to remain weak and consolidate in the short term. This is primarily due to continued weak downstream demand and relatively stable market supply. Therefore, a significant rebound in acrylic acid prices is unlikely to occur without significant positive factors. However, it is also important to note that the market is always volatile, and any policy adjustments, industry dynamics, or macroeconomic changes may have an impact on market prices.

In summary, the acrylic acid market continued its downward trend last week, primarily due to supply-demand dynamics. With relatively stable supply and weak demand, a significant price rebound is unlikely. Therefore, holders and downstream users should closely monitor market dynamics and industry changes to develop appropriate purchasing and sales strategies.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.