Market Overview:

Recently, the domestic acrylic acid market has indeed exhibited typical characteristics of "supply-demand dynamics and stable consolidation." The market shows stable prices, but there are different pressures and supports on both the supply and demand sides. As of January 6th, SunSirs' benchmark price for acrylic acid was 5,850.00 RMB/ton, unchanged from the beginning of the month.

Market Analysis

The current market stalemate is the result of a balance between the forces of supply and demand:

Supply side:

The industry's operating rate is not only high, but prices have also remained stable since the beginning of January. This has resulted in ample spot market resources, which is the main factor suppressing price increases.

Demand side:

The market's core support comes solely from the rigid demand purchases of downstream users. Due to issues such as slow payment collection in end-use sectors (such as coatings and textiles), there is generally little interest in traditional "winter stocking" before the Spring Festival, with most companies only making small-batch, on-demand purchases. This has resulted in a weak overall trading atmosphere, failing to provide upward momentum for prices.

Cost side:

The prices of the main upstream raw materials, propylene and n-butanol, have risen moderately recently. Overall, the cost support for acrylic acid is adequate but lacks strong driving force, failing to break the balance of supply and demand. As of January 6th, SunSirs' benchmark price for propylene was 5,744.33 RMB/ton, a 0.47% increase compared to the beginning of the month (5,717.67 RMB/ton).

On January 6th, the benchmark price for n-butanol (industrial grade) according to SunSirs was 5,633.33 RMB/ton, unchanged from the beginning of the month.

Market Outlook:

Overall, the market is expected to continue trading within a narrow range in the short term. High supply and weak inventory demand are creating a "ceiling" for price increases. Current essential demand and high costs are also setting a "floor" for prices, preventing them from falling significantly.

The key factors for the future are: whether downstream businesses will begin stocking up in preparation for the Chinese New Year as time progresses, and whether there will be any unexpected adjustments in the operating rates of suppliers. These two points will be the main variables that will disrupt the current balance and guide the market's direction.

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