SunSirs: Demand Was Insufficient, and the Acrylic Acid Market Was in a Downward Trend

Price trend

Last week, the acrylic acid and esters market in East China showed signs of weakness and consolidation, with prices across all products generally declining slightly, reflecting weak market demand and insufficient trading activity. As of August 11, the benchmark price of acrylic acid on SunSirs was 6,200 RMB/ton, a 6.77% decrease from 6,650 RMB/ton at the beginning of the month. This was primarily due to sluggish downstream purchasing activity, resulting in a sluggish market and forced holders to lower their bids to facilitate transactions.

Analysis review

On the demand side:

From a product perspective, the ester market weakened across the board: methyl acrylate (6,900 RMB/ton), ethyl acrylate (9,400 RMB/ton), and butyl acrylate (7,000 RMB/ton) all saw declines of around 50 RMB/ton. Isooctyl acrylate saw a more pronounced drop (8,150 RMB/ton, down 100 RMB/ton), indicating limited acceptance of high-priced raw materials by end-users. The butyl acrylate market, in particular, saw a downward trend, with downstream purchases remaining limited to just-in-time purchases. The market's strong wait-and-see attitude led to a continued downward shift in the focus of negotiations.

Notably, the methacrylic acid market remained relatively resilient, with prices holding steady at 10,550 RMB/ton. High-end quotes even edged up to 10,600 RMB/ton, but actual transaction activity was limited, with factory purchases primarily based on demand, suggesting no significant deterioration in the supply and demand structure for this product. The acrylic emulsion market also remained stable at 6,200 RMB/ton, likely due to stable demand in downstream industries like coatings.

As of August 11, the acrylic acid industry chain faced significant pressure from the demand side. On the one hand, the traditional off-season coupled with insufficient capacity utilization in some end-use industries had hindered the release of solid trading volume. On the other hand, price fluctuations in raw material propylene and uncertainty in the crude oil market had further exacerbated market wait-and-see attitudes. In the short term, the market is expected to remain range-bound. Without significant demand growth or cost support, prices may continue to weaken.

Supply Side:

As of August 11th, the benchmark price of propylene on SunSirs was 6,453.25 RMB/ton, up 0.31% from 6,433.25 RMB/ton at the beginning of the month. Despite this slight price increase, market sentiment remained weak. Downstream factories had limited acceptance of high-priced raw materials, and procurement had slowed, putting pressure on manufacturers to ship. Some manufacturers were offering small margin concessions to boost sales. The market supply and demand situation appeared slightly loose, and the weakening market conditions of some downstream derivatives (such as PP and PO) were further suppressing propylene demand.

The acrylic acid market remained weak, with trading activity thin and actual transaction prices trending towards the lower end of the market. Downstream users were showing little enthusiasm for purchasing, adopting a wait-and-see approach. The market lacked strong support and is likely to remain weak in the short term.

The butyl acrylate market was also under pressure, with mediocre demand. Downstream companies were only focusing on replenishing inventory to meet demand, cautiously inquiring, and a bearish market sentiment. While traders were willing to hold quotations steady, however, due to the lack of transaction volume, the focus of negotiations still showed signs of loosening.

Future outlook:

Overall, the acrylic acid market in East China is expected to continue its weak consolidation next week, with limited price fluctuations. The butyl acrylate market is likely to remain volatile, with the possibility of localized declines due to the game between supply and demand. SunSirs recommends closely monitoring changes in raw material propylene prices and the recovery of downstream demand to determine the market's next steps.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.