Price trend

Recently, the acrylic acid market has not maintained a completely stable state, but has shown characteristics of "weak stability, fluctuating within a narrow range, and a slight downward trend." On December 16th, the benchmark price of acrylic acid according to SunSirs was 6,050.00 RMB/ton, a decrease of 0.55% compared to the beginning of the month (6,083.33 RMB/ton).

Market Analysis

Market Dynamics:

The recent "weak and volatile" market trend WAs the result of a complex interplay of forces from supply, demand, and costs:

Supply side:

Relatively stable but slightly increasing. Since the beginning of December, with the gradual restart of some previously idled or reduced-capacity facilities (such as those in Fujian Binhai and Qixiang Tengda), the industry's operating rate increased, and the market's spot supply gradually increased. Suppliers' pricing strategies had become more flexible.

Demand Side:

Downstream demand was limited, and a wait-and-see attitude prevailed. This aligns with your observation of "limited downstream demand follow-through," but overall demand momentum was weak. Orders in end-use sectors (such as coatings, adhesives, and SAP resins) were performing poorly, leading downstream factories to generally adopt a "purchase as needed, buy on dips" strategy, lacking the motivation for bulk purchasing.

Cost Side:

The price of the main raw material, propylene, remained relatively stable in early December, providing some support to the cost of acrylic acid. As of December 16th, the benchmark price of propylene according to SunSirs was 6,190.75 RMB/ton, an increase of 0.16% compared to the beginning of the month (6,180.75 RMB/ton). However, due to weak demand, it was difficult to pass on the increased costs to downstream customers, squeezing manufacturers' profit margins.

Market Outlook:

Overall, the core contradiction in the acrylic acid market was the conflict between "high costs and weak demand." Without strong demand to drive the market, it is expected that the market will remain in a weak consolidation phase within the price range in the short term, making a clear upward trend unlikely.

In the long term, the industry is undergoing structural changes. With the commissioning of large-scale projects such as BASF Zhanjiang, supply is becoming more abundant, and competition is shifting from "scale competition" to "technological premium." In the future, leading companies with the ability to produce high-end specialty products and integrated cost advantages will be more competitive.

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