This week, the domestic acrylic acid market continued its downward trajectory, with the price center of gravity steadily shifting lower. Data from SunSirs indicates that on May 7, the benchmark price for acrylic acid stood at 9,916.67 RMB/ton—a decline of 2.3% compared to the beginning of the month (10,150 RMB/ton). Driven by the dual forces of supply-demand dynamics and cost pass-through effects, the market exhibited distinct characteristics of a downward trend; downstream players maintained a strong wait-and-see stance, and overall trading activity remained subdued.

Key Market Performance This Week

In terms of price trends, the acrylic acid market continued its downward trajectory this week, with prices breaching the 10,000 RMB/ton mark. The daily decline reached as high as 2.3% during the week, bringing prices down by over 3,000 RMB/ton from their previous peak of 13,116.67 RMB/ton. The market generally exhibited a pattern characterized by "upstream concessions and downstream wait-and-see attitudes." Producers faced mounting pressure to move inventory, and their quoted prices were continuously lowered in response to prevailing market sentiment; however, downstream buyers largely maintained a wait-and-see stance, limiting their purchasing to immediate necessities. With a lack of follow-through on large-volume orders, the overall trading atmosphere remained subdued.

Factors Driving Down Prices

1. Supply Side:

Previously, acrylic acid prices surged to over 13,000 RMB/ton; this led to a significant recovery in industry profit margins and boosted manufacturers' enthusiasm for production, resulting in an overall abundant supply of market inventory. As prices subsequently retreated, the pressure to offload high-level inventories accumulated during the earlier peak period gradually began to surface. To alleviate the pressure to move goods, some enterprises proactively lowered their quoted prices, thereby driving the market price center even lower and creating a cyclical pattern of "falling prices—inventory pressure—further price cuts."

2. Demand Side:

Acrylic acid is primarily utilized in downstream sectors such as acrylic esters, SAP, and super-absorbent polymers. This week, the overall purchasing appetite among downstream enterprises remained subdued; terminal demand showed no significant signs of improvement, and there was strong resistance to high-priced raw materials. Purchasing activities were characterized mainly by a "buy-as-needed" approach, with a notable absence of large-scale inventory stocking. This was particularly evident in the acrylic ester industry, where profit margins were eroded by sluggish demand in downstream sectors—such as coatings and adhesives—thereby limiting the scope for increasing operating rates. Consequently, the industry struggled to generate effective purchasing support for acrylic acid, and a strong "wait-and-see" sentiment continued to prevail across the market.

3. Cost Side:

Although upstream propylene prices have experienced periodic fluctuations, the overall cost support for acrylic acid has notably weakened. With the rapid decline in acrylic acid prices, the previous market logic—driven by rising costs—has been disrupted; consequently, market sentiment has shifted from a previously bullish stance to one of cautious bearishness.

Market Outlook

In the short term, bearish market sentiment has not yet fully dissipated, and the prevailing landscape—characterized by ample supply and sluggish demand—is unlikely to reverse quickly. Acrylic acid’s mainstream price is projected to trade within the range of 9,500–9,700 RMB/ton this week; while cost support limits the potential for a significant decline, the momentum for a rebound remains weak.

In the medium term, as prices retreat toward the cost line, plant operating rates may undergo gradual adjustments, potentially alleviating supply-side pressure. Concurrently, close attention should be paid to changes in operating rates within downstream sectors—such as acrylate esters and coatings—as signs of a rebound in end-market demand and an acceleration in downstream procurement could present an opportunity for the market to halt its decline and stabilize.

SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.