Price trend

This week, the acrylic acid market struggled to maintain a balance between weak demand and high costs. Despite overall weak demand, producers remained committed to maintaining prices near cost levels. This, coupled with tightening supply in some regions, pushed prices slightly higher.

Analysis review

Market price: On September 9, the benchmark price of acrylic acid from SunSirs was 6,316.67 RMB/ton, up 1.07% from the beginning of this month (6,250.00 RMB/ton).

Industry Operating Rate: On September 8, the average capacity utilization rate of the domestic acrylic acid industry was 72.84%, unchanged from the previous business day. This indicated that the supply side remained stable with no significant increase.

Production Profits: The industry's profit margins continued to be squeezed. Data as of August 28th showed that the acrylic acid industry's production profit margin was 5.43%, down 2.26 percentage points from 7.69% the previous week (August 21st). Some factories were nearing break-even or even operating at a loss.

Supply side:

The industry's operating rate remained at a median of 72.84%, with factories maintaining operations and supply remaining stable overall.

Social inventory was at a medium-to-high level, and inventory pressure persists. However, factories and holders were strongly supportive of prices, shipping in line with market conditions and offering flexible quotes.

It is worth noting that in the second half of 2025, the domestic acrylic acid industry still has more than 600,000 tons or even 740,000 tons of new production capacity planned to be put into production (such as Shandong Blue Bay, Tianjin Bohai Chemical and other facilities), which means that the industry's supply pressure may escalate again in the future.

On the demand side:

Purchasing activity in key downstream sectors (such as coatings, adhesives, and textile auxiliaries) was weak, with a generally bearish or cautious attitude. Restocking was primarily driven by essential demand, and price-cutting was common.

The export market was also not optimistic. In the first half of 2025, China's butyl acrylate exports decreased by 13.42% year-on-year, failing to effectively divert domestic supply pressure.

The traditional demand side (such as oil extraction, water treatment, papermaking, etc.) was dragged down by the weak global economy and is unlikely to see significant growth.

Cost Support:

The price of raw material propylene has fluctuated recently. As of September 9th, the benchmark price of propylene on SunSirs was 6,605.75 RMB/ton, down 0.86% from the price of 6,663.25 RMB/ton at the beginning of the month. While cost support was somewhat limited compared to earlier periods, acrylic acid production profit margins were already low (5.43%), with some factories even operating near break-even. This left manufacturers with limited room for profit concessions and a strong incentive to maintain prices. This provided significant support for market prices.

Market outlook

In the short term (within September), the acrylic acid market is expected to continue to fluctuate and strengthen, but both upward and downward momentum are limited. The balancing act between cost support and weak demand remains the dominant market dynamic. Without an unexpected improvement in downstream demand (e.g., centralized procurement by large downstream companies or a surge in export orders), sustained significant price increases are unlikely. The market is expected to see a slight upward trend.

In the medium to long term, the acrylic acid industry is undergoing a transition from a "scale-based competition" to an "era of technological premium." Leading companies, such as Satellite Chemical and Huayi Group, are building competitive advantages through technological iteration and industry chain integration. However, small and medium-sized enterprises, due to insufficient technological investment, struggle to meet high-end demand (such as medical-grade and electronic-grade acrylic acid), increasing their survival pressure.

Overall, the acrylic acid market remained strong this week amidst a supply-demand dynamic, with prices rising slightly. Cost support and producers' willingness to maintain prices were the primary drivers of the market, but weak demand and high inventories also limited upward price momentum.

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