Price trend
The domestic acrylic acid market continues to weaken, with prices generally falling across all regions. As of August 6, the benchmark price of acrylic acid on SunSirs was 6,500 RMB/ton, down 2.26% from 6,650 RMB/ton at the beginning of the month.
Analysis review
Raw materials:
On August 5th, propylene prices in Shandong fell by 50 yuan/ton, ranging from 6,130 to 6,190 yuan/ton. While propylene prices are expected to rebound slightly in the near future, acrylic acid production costs remain relatively low, leaving manufacturers with some profit margins.
Price Changes:
The mainstream transaction price in North China is 6,150-6,250 RMB/ton, down 100 RMB/ton from the previous day.
The price of refined acid in East China is 6,600-6,700 RMB/ton, down 50 RMB/ton.
The price in South China is 6,300-6,400 RMB/ton, also down 50 RMB/ton.
Supply Side:
Two Zibo plants in North China are undergoing maintenance, but other factories are operating at a high level. The Putian plant in South China has postponed its resumption of production until mid-August, but the Qinzhou and Huizhou plants are operating normally. Overall, the market is well supplied, with no shortages.
Demand Side:
Hot and rainy weather continues to impact downstream demand. Downstream companies are primarily focused on clearing inventory, making only small, essential purchases. Demand is particularly weak in downstream sectors such as SAP and polyacrylamide.
Market Sentiment:
Continued price declines have led to a strong bearish sentiment in the market. Buyers are generally taking a wait-and-see approach, waiting for prices to fall further. Transactions are primarily small, low-priced orders, and overall trading volume is light.
Future outlook:
Although the raw material propylene may rise slightly, there is still room for profit in acrylic acid. In the case of oversupply, it is expected that manufacturers will continue to make concessions on shipments. In the short term, the acrylic acid market may maintain a weak operating trend.
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