Market trends 

Recently, the domestic acrylic acid market has exhibited characteristics of "weak stability and narrow fluctuations" due to the ongoing interplay between a slight increase in supply and cautious purchasing from downstream buyers. As of December 10th, the benchmark price of acrylic acid according to SunSirs was 6,066.67 RMB/ton, a decrease of 0.27% compared to the beginning of the month (6,083.33 RMB/ton).

The "weakly stable" situation was the result of a temporary balance between various forces, including supply, demand, and costs.

1. Supply side:

According to market information, the supply of acrylic acid in the market indeed increased. However, it was worth noting that the market operating rate might not be at a high level. For example, Wanhua Chemical's 300,000 tons/year plant was still "operating normally" when it lowered its price on December 9th, indicating stable supply but not excessive expansion. Holders generally adopted a flexible pricing strategy of "following market trends," showing little willingness to lower prices in the lower price range, which provided some support to the market.

2. Demand Side:

Downstream demand was the core limiting factor in the market. Orders in end-use sectors (such as coatings, adhesives, and SAP resins) were lackluster, leading downstream factories and traders to generally adopt a cautious wait-and-see attitude towards the future market. Purchasing behavior was strictly limited to immediate needs and small orders, lacking the enthusiasm for bulk stocking, and there was a widespread tendency to push for lower prices. This "purchase-on-demand, buy-on-dips" model prevented price increases and resulted in a stagnant market.

3. Cost side

The price of propylene, the main raw material, remained relatively stable in early December. As of December 10th, the benchmark price of propylene according to SunSirs was 6,220.75 RMB/ton, a 0.65% increase compared to the beginning of the month (6,180.75 RMB/ton). High costs led to strong price-holding intentions among manufacturers, but due to weak demand, cost increases were difficult to pass on to downstream customers, resulting in continuous pressure on profit margins.

Short-term outlook:

Overall, the acrylic acid market does not have the conditions to break the stalemate in the short term. The market is expected to continue consolidating within the low price range. Price fluctuations will be limited, lacking clear directional guidance. The core contradiction in the market remains the interplay between "high costs and weak demand."

Long-term trend:

It is worth noting that, in the long term, the acrylic acid industry is undergoing structural changes. The introduction of a large amount of new production capacity will lead to a more relaxed supply situation, and the core of industry competition is shifting from "scale competition" to "technological premium." Leading companies with the ability to produce high-end specialty products (such as high-purity electronic-grade and medical-grade acrylic acid) and integrated supply chain cost advantages will gain stronger competitiveness.

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