Challenges and Volatility in the Acrylic Emulsion Market in 2023

The acrylic emulsion market in 2023 has experienced significant volatility and challenges due to fluctuations in raw material prices and weak demand. This article provides an overview of the market trends and factors that have influenced the pricing dynamics of acrylic emulsions.

Market Overview:
The acrylic emulsion market has been characterized by range-bound price fluctuations throughout the year. Spot prices have remained at a low level, reaching the lowest point in the past five years. The average price of pure acrylic emulsion for the year stood at 8,097 yuan/ton, a year-on-year decrease of 9.80%. Similarly, the average price of styrene-acrylic emulsion was 9,578 yuan/ton, down 9.44% compared to the previous year.

Factors Influencing Market Trends:
At the beginning of the year, the market witnessed a strong start for commodity trading. The prices of acrylic acid butyl ester and methyl methacrylate (MMA) surged significantly due to increasing cost pressures. In response, acrylic emulsion suppliers actively raised their prices. However, limited demand and slow purchasing activities in the downstream market restrained the extent of price increases.

In March, acrylic acid butyl ester prices experienced a sharp decline of 1,600 yuan/ton within the month. The MMA market remained subdued, while the styrene market maintained a range-bound pattern. Insufficient support from the bottom of the acrylic emulsion market, coupled with weak demand, led to sellers offering discounts to stimulate sales.

Towards the end of April and the beginning of May, acrylic acid butyl ester prices rebounded by around 1,000 yuan/ton, and the MMA market experienced noticeable upward momentum. The styrene market remained firm. Supported by cost factors, acrylic emulsion prices saw a modest increase of around 300 yuan/ton in mid-May. However, with the onset of hot weather and the approaching off-season for the coatings industry, combined with the downward trend in raw material prices, including acrylic acid butyl ester, MMA, and styrene, the acrylic emulsion market experienced a downward trajectory.

In June, despite a significant increase in MMA prices, weak demand limited the upward movement of the acrylic emulsion market, which was plagued by a cost inversion situation.

In August, the anticipation of pre-stocking ahead of the traditional peak season led to price increases in acrylic acid butyl ester and styrene markets. However, the impact of demand remaining focused on essential purchases constrained acrylic emulsion price adjustments to a range of 200-300 yuan/ton.

By late August and early September, the styrene and acrylic acid butyl ester markets demonstrated strong upward momentum. The styrene market reached its highest price of the year, while acrylic acid butyl ester prices remained range-bound. Despite the strength in cost factors, limited follow-through in purchasing activities in the downstream market restricted price increases for acrylic emulsions.

In October, the raw material market experienced a successive weakening trend, with acrylic acid butyl ester, styrene, and MMA markets tightening. This resulted in slightly tighter pricing in the acrylic emulsion market.

Towards the end of October, the MMA market faced supply constraints, leading to price hikes. The styrene market was supported by crude oil prices and inventory levels, resulting in continuous price increases. However, the acrylic acid butyl ester market continued to trend lower, and acrylic emulsion prices remained relatively stable.

Challenges and Volatility in the Chemical Market in November:
The overall chemical market has been bleak, with a trend of more price declines than increases in November. Over 60% of chemical products experienced price declines, with less than 30% seeing minor price increases. Products such as hydrogen peroxide and trichloromethane witnessed price declines of over 20%, while bisphenol A, isobutanol, epoxy resin, vinyl acetate, and pure benzene recorded declines of over 2%. Notably, industrial-grade lithium carbonate prices plummeted by 11,600 yuan/ton, while battery-grade lithium carbonate dropped by 12,400 yuan/ton, and polysilicon declined by over 3,300 yuan/ton.

The acrylic emulsion market in 2023 has faced significant challenges and volatility due to fluctuations in raw material prices and weak demand. The market experienced limited price increases, primarily influenced by cost factors and occasional supply constraints in certain raw materials. The overall chemical market has remained subdued, with more price declines than increases in November. The acrylic emulsion industry will need to navigate these challenges and monitor market dynamics closely to adapt to the changing landscape.