SunSirs: Cost and Demand Led, Acrylic Acid Market Declined in the First Half of the Year-II

Analysis review

In January, the factory's operating load was low. With the centralized spring inspection, the utilization rate of factory equipment capacity steadily declined. In April, the maintenance of factory equipment gradually ended, and the market supply increased. In May, the supply increased significantly. In June, some factory equipment was repaired, and the supply decreased. The supply side had some support for the acrylic acid market.

According to customs statistics, the cumulative import volume of acrylic acid and its salts in China from January to May 2023 was 15,990,704 kilograms, and the cumulative export volume was 52,105,851 kilograms. The lowest import volume was in January, with an import volume of 1,042,476 kilograms. The highest import volume was in February, with an import volume of 5,685,936 kilograms. The lowest export volume was in January, with an export volume of 7,829,599 kilograms. The highest export volume was in May, with an export volume of 12,641,810 kilograms.

Upstream propylene, according to the Commodity Market Analysis System of SunSirs, as of June 30, the average spot price of domestic propylene was 6,518.25 RMB/ton, a decrease of 10.03% from the 7,244.60 RMB/ton at the beginning of the year, and cost support for the acrylic acid market was weak.

Market outlook

Acrylic acid analysts from SunSirs believe that the overall acrylic acid market was weak in the first half of 2023, with cost and demand leading the market. In July, the acrylic acid market has been steadily rising, with multiple benefits: currently, the price of raw material propylene is narrow, and cost support still exists. In addition, the low utilization rate of acrylic acid production capacity supports the market's price mentality. Bearish side: July is the traditional off-season for consumption, and downstream buyers are just in need of follow-up. The purchasing mentality is still cautious, and it is expected that in the short term, the acrylic acid market may moderately consolidate and operate, and more attention should be paid to market news guidance.

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