Price trend

This week, acrylic acid market prices shows a narrow upward trend. As of September 17, the benchmark price of acrylic acid on SunSirs was 6,416.67 RMB/ton, up 2.67% from 6,250 RMB/ton at the beginning of the month. This indicates that the overall market is in a slow upward trend.

Analysis review

Supply Side:

Industry capacity utilization increases slightly compared to the previous week (72.84% on September 4th vs. 74.40% on September 11th). However, some manufacturers and holders remain receptive to maintaining prices, quoting prices in line with market conditions, resulting in a decrease in the supply of low-priced goods.

Demand side:

Downstream users are primarily purchasing for immediate needs, with little incentive to proactively stock up, primarily focusing on absorbing contract orders and existing inventory. This supply-demand dynamic is one of the main reasons for the narrow price fluctuations.

Cost side:

The price of propylene, the primary raw material, declines slightly in Shandong (6,530-6,570 RMB/ton, a drop of 50-80 RMB/ton). This weakening of cost support has limited the price increase of acrylic acid, preventing a significant surge.

Market Sentiment:

Traders are relatively positive and actively support the market, but actual trading volume (actual transactions) is average. Both buyers and sellers are cautious, focusing on actual transactions.

Market outlook

In the near term, the domestic acrylic acid market is expected to remain strong. However, it's important to note that the price trend of raw material propylene remains uncertain. The impact of downstream demand is crucial; if demand doesn't continue to increase, the sustainability of price increases may be limited. Industry players are advised to closely monitor the plant operations of major production companies and downstream inventory levels.

Overall, the acrylic acid market is narrowly upward this week, fueled by price support from holders and strong demand, despite weakening cost support and a slight increase in supply. The market exhibits a volatile pattern characterized by resistance from above and support from below.

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