SunSirs: Supported by the Supply Side, the Acrylic Acid Market Rose in March

Price trend

The acrylic acid market rose in March. According to the Commodity Market Analysis System of SunSirs, as of March 27th, the average quoted price of acrylic acid in East China was 6,425.00 RMB/ton, an increase of 3.63% compared to March 1st (the reference price of acrylic acid was 6,200 RMB/ton).

Analysis review

From the data monitoring chart of SunSirs, it can be seen that the price of acrylic acid in the early stage of the month fell, mainly due to the dragging of the market by the demand side, slow follow-up of terminal demand, limited downstream new order transactions, poor receiving sentiment, and poor shipment of acrylic acid enterprises, with some discounts to promote transactions. With the rise in raw material propylene prices and increased cost pressure, some equipment on the supply side had been shut down for maintenance, leading to a decrease in industry capacity utilization. The quotes from major manufacturers had been raised, supporting the market's price push mentality. Low priced goods on the market had decreased, and downstream inquiries were still promising. Buying continued to be on demand, and actual market transactions were average. As the end of the month approached, some devices underwent maintenance and there was a shortage of spot supply, resulting in a favorable market trend on the supply side.

Cost side: According to the commodity market analysis system of SunSirs, the reference price of propylene on March 26th was 6,690.60 RMB/ton, a decrease of 2.62% compared to March 1st (6,870.75 RMB/ton). The raw material propylene operated in a narrow range in March, and the cost side pressure of the acrylic acid market still existed.

Market outlook

According to the acrylic acid analyst from SunSirs, the cost impact was limited, and supply side support was temporarily in place. Downstream followed up on demand, and there was a strong wait-and-see attitude towards high priced raw materials. It is expected that the acrylic acid market will remain strong in the short term, and more attention should be paid to changes in supply side operations.

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