Market status:

The core characteristic of the acrylic acid market was low-level consolidation due to weak demand. Data shows that as of October 29th, the benchmark price of acrylic acid on SunSirs was 6,833.33 RMB/ton, up 1.99% from 6,700 RMB/ton at the beginning of the month. This price was within the low-to-mid range of the year, indicating a lack of upward momentum and a subdued trading atmosphere.

Industry giant Wanhua Chemical lowered its acrylic acid price in North China to 6,200 RMB/ton, a cumulative decrease of 350 RMB/ton over the past two days. These proactive price cuts by leading companies not only lowered the market's center but also signaled a clear bearish outlook, exacerbating sales pressure on other manufacturers and fueling market pessimism.

Cost side:

The key negative factor for the market came from upstream sources. The price of raw material propylene had declined. As of October 29th, the benchmark price of propylene on Sinochem was 6,150.75 RMB/ton, a 6% decrease from 6,543.25 RMB/ton at the beginning of the month. As the primary cost component of acrylic acid, the weakening price of propylene had weakened the cost support for acrylic acid production, creating room for price declines.

Demand side:

Shifting downstream purchasing strategies: In a market where prices tend to rise and fall, downstream users were taking a bearish view on future prices. Consequently, they were generally adopting a "just-in-time" purchasing strategy, purchasing only what is necessary to maintain current production rather than stockpiling large quantities. This has hindered overall market transaction volume growth.

Poor transmission of end-user demand: Key downstream sectors of acrylic acid, such as butyl acrylate, were also likely to experience weak end-user demand (e.g., in coatings, textiles, adhesives, and other industries). The sluggish end-user market will be transmitted upwards along the supply chain, ultimately leading to a decline in demand for acrylic acid.

Supply Pressure Continued: Meanwhile, the operating rates of major manufacturers remained stable, ensuring ample market supply. However, amidst sluggish demand, this stable supply had in turn led to inventory pressure, forcing companies to compete on price to secure limited orders.

Market outlook

On the whole, if there is no major positive stimulus, the acrylic acid market will most likely continue to consolidate in a weak position in the short term.

Negative factors: The weakness of propylene on the cost side is difficult to reverse in the short term, and the weak downstream demand is expected to continue. These two factors will continue to suppress market prices.

Potential variables: We need to closely monitor any unexpected shutdowns of large-scale production facilities for maintenance, or unexpected macroeconomic policies to stimulate downstream industries. These factors could alter the supply and demand structure in the short term, triggering market fluctuations.

In summary, as of October 29, the acrylic acid market was in a typical "weak demand"-dominated cycle, exacerbated by collapsing costs and bearish sentiment. A market recovery ultimately depends on substantial improvements in downstream end-consumer demand.

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