Price trend:

Recently, the domestic acrylic acid market generally maintained a stable but slightly weaker trend driven by supply and demand, lacking a clear directional driver. The most significant feature of the market was the downward shift in price levels. As of November 26, the benchmark price of acrylic acid from SunSirs was 6,150.00 RMB/ton, which represented a decline of approximately 5% compared to the high of 6,500 RMB/ton earlier this month.

Market Analysis

Supply side:

The stable operation of the market was mainly due to a stable supply. Major producers such as Wanhua Chemical and Shanghai Huayi had all reported normal operation of their facilities. Ample supply had secured market availability, eliminating expectations of price increases due to shortages and thus limiting upward momentum in the market.

On the demand side:

With ample supply, downstream demand was relatively weak, failing to provide effective stimulus. This led to a cautious approach among market participants, with most purchasing only as needed and little incentive to stockpile or chase rising prices. Data from SunSirs showed that prices were also relatively low for the year, reflecting this cautious market sentiment.

Cost Side:

As of November 26th, the benchmark price of propylene from SunSirs was 6,098.25 RMB/ton, an increase of 0.66% compared to the beginning of the month (6,058.25 RMB/ton). This directly raised the production cost of acrylic acid, reducing producers' willingness to lower prices, as profits had already been squeezed. Costs provided a solid floor for acrylic acid prices, preventing a significant decline.

Market Forecast:

Overall, the acrylic acid market is expected to continue its narrow range of fluctuations and remain generally stable in the short term.

Limited upside potential: With ample supply and no significant demand surge, prices are unlikely to gain strong upward momentum.

Downside support exists: On the other hand, current prices are already at a relatively low level, squeezing the profit margins of manufacturers. Factors such as raw material costs will provide some bottom support, limiting the potential for further significant price declines.

In summary, the acrylic acid market is a typical stable market with both supply and demand weak. In the absence of major news, this stalemate may continue for some time.

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