SunSirs: Purchases Were Made on an As-Needed Basis, and the Acrylic Acid Market Remained Stable

Price trend:

Last week, the core state of the acrylic acid market was "weak balance between supply and demand, with prices remaining stable." As of December 3rd, the benchmark price of acrylic acid according to SunSirs was 6,083.33 RMB/ton, unchanged from the beginning of the month.

Market characteristics: Downstream users were mainly focused on fulfilling existing contracts or depleting inventory, with limited spot market activity. A strong wait-and-see attitude prevailed in the market, resulting in light trading volume.

Cost supported

As of December 3rd, the benchmark price of propylene according to SunSirs was 6,168.25 RMB/ton, a decrease of 0.2% compared to the beginning of the month (6,180.75 RMB/ton). The price of raw material propylene remained high, resulting in high production costs and a reluctance among companies to lower prices. This provided strong price support for acrylic acid, preventing it from falling significantly.

Sufficient supply

The main production facilities were operating stably, and overall supply was ample. The abundant supply eliminates expectations of price increased due to shortages, acting as a "stabilizer" for the market and meaning there was a lack of supply-side impetus to drive prices up.

Weak demand

Demand in major downstream sectors (such as coatings and adhesives) had not shown any significant improvement, and there was insufficient follow-up on end-user orders. This was the key to the stalemate. Downstream users generally maintained a cautious attitude, adopting a "buy as needed" strategy, lacking the motivation for centralized stockpiling or buying in anticipation of price increases.

Market outlook

Overall, unless there is significant positive news (such as drastic changes in costs or a surge in demand), the acrylic acid market is likely to continue in a weak equilibrium pattern with narrow fluctuations in the short term.

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