Price trend

This week, the market for premium-grade acrylic acid in East China experienced a significant, stepwise decline. As of June 26, the benchmark price for acrylic acid tracked by SunSirs stood at 8,250.00 RMB/ton, representing a 4.62% drop compared to the beginning of the month (8,650.00 RMB/ton).

Market analysis

Cost side

The collapse in the cost of the feedstock propylene is the primary driver behind the sharp decline in acrylic acid prices. As of June 26, the benchmark price for propylene tracked by SunSirs stood at 7,084.33 RMB/ton, marking a steep drop of 22.44% from the 9,134.33 RMB/ton recorded at the beginning of the month.

With propylene prices continuing to fall sharply, feedstock costs for manufacturers have steadily declined. Bearish sentiment has spread across the market, leading traders and downstream buyers to adopt a "wait-and-see" approach. An increase in low-priced sell-offs has dragged down acrylic acid spot prices in tandem with the feedstock, creating a downward trend where the price of the finished product follows the decline of its raw material.

Supply, Demand, and Market Sentiment

1. Weak follow-through in demand: Essential procurement from downstream sectors—such as coatings, adhesives, and superabsorbent polymers—remains sluggish. The market lacks concerted restocking activity, making it difficult to close deals at high price points and forcing sellers to lower prices to stimulate sales;

2. Bearish sentiment dominates trading: Continuous sharp declines in raw material costs, coupled with falling prices for finished products, have intensified concerns about further market downturns. Holders of inventory are proactively lowering prices to offload stock, thereby accelerating the downward price trend.

Market Outlook

1. Unless the price of the feedstock propylene stops falling and rebounds, the weak trend in the acrylic acid market is unlikely to reverse quickly; in the short term, the market is likely to see range-bound trading at low levels as it absorbs the recent decline.

2. A key factor to monitor is whether the price of the feedstock propylene shows signs of halting its decline; if propylene prices stabilize and rebound—restoring cost-side support—and this coincides with acrylic acid prices bottoming out, the market may experience a short-term rally. Conversely, if propylene continues to weaken, acrylic acid prices remain at risk of a slight further decline.

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