SunSirs: The Demand Side Continued to Exert Force, and the High Price of Acrylic Acid was Supported

Market mentality warmed up 

Recently, the domestic acrylic acid market has shown a moderate upward trend. As of July 7th, the benchmark price of acrylic acid in SunSirs was 7,233.33 RMB/ton, an increase of 0.93% compared to the beginning of this month (7,166.67 RMB/ton). It is worth noting that although the price of raw material propylene fell on July 7th, the prices of downstream butyl ester and isooctyl ester products continued to rise. As of July 7th, the market presented the following characteristics: downstream procurement was still dominated by rigid demand, but the overall trading atmosphere in the market significantly rebounded compared to the previous period; Combined with the fact that some production enterprises' equipment was still under maintenance this week, the market supply remained tight. Under the dual effects of improved supply and demand patterns and cost support, the acrylic acid market as a whole was showing a stable and positive operating trend.

Analysis review

Monitoring data showed that the price of acrylic acid recently increased by 0.93%, mainly due to the combined effect of the following market variables.

Cost side

Recently, the international crude oil and polypropylene futures markets have continued to weaken, leading to a synchronous decline in propylene spot prices in Shandong region. As of July 7th, the benchmark price of propylene in SunSirs was 6,700.75 RMB/ton, a decrease of 0.3% compared to the beginning of this month (6,720.75 RMB/ton). From the perspective of market supply and demand, although the industry's operating rate remained relatively stable, different manufacturers had differentiated their price adjustment strategies: some companies chose to raise prices and wait, while others actively lowered their quotes, resulting in a significant decrease in overall trading activity. It is worth noting that the concessions on the raw material side have eased the production cost pressure on downstream enterprises, especially the profit level of the acrylic acid industry has significantly improved.

Demand side

As of July 7th, the acrylic ester market showed an upward trend, with prices of butyl acrylate and isooctyl ester showing particularly strong performance. Affected by the low inventory of acrylic acid at the raw material end and the rise in alcohol prices, ester enterprises were facing increased cost pressure. Some manufacturers had voluntarily raised their prices, driving market transaction prices to steadily rise. This market change provided positive feedback to the acrylic acid market, further consolidating its price support.

Overview of Market Trends

The peak season effect was evident, with strong support for the acrylic acid market. Driven by the rebound in seasonal demand, the trading atmosphere in the domestic acrylic acid market had significantly improved. On the supply side, the power rationing factors that previously constrained production had been basically eliminated; The demand side benefited from the opening of export windows, the stimulation of reduced shipping costs, and the release of downstream replenishment demand. The current market is experiencing a stronger trend, supported by both the cost and demand.

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