Supply-Demand Contradiction Unresolved, Acrylic Prices Likely to Remain Weak in the Short Term

August 6th News

The Chinese acrylic acid market continues to weaken, with prices generally falling across all regions. As of August 6th, the benchmark price for acrylic acid was 6,500.00 CNY/ton, a decrease of 2.26% compared to the beginning of the month (6,650.00 CNY/ton).

Regarding raw materials:

Yesterday, the propylene price in Shandong, China fell by 50 yuan, currently at 6,130-6,190 CNY/ton. Although it is expected that the propylene price will rebound slightly in the near future, the production cost of acrylic acid remains at a relatively low level, and manufacturers still have a certain profit margin.

Price Change:

The mainstream transaction price in North China is 6150-6250 CNY/ton, a decrease of 100 yuan from the previous day.

The price of refined acid in the East China region is 6,600-6,700 CNY/ton, down by 50 yuan.

The price in the South China region is 6300-6400 CNY/ton, also down by 50 yuan.

Supply situation:

North China has two Zibo facilities under maintenance, but other factories are highly motivated to produce. The Putian facility in South China has delayed resumption of production until mid-August, but the Qinzhou and Huizhou facilities are operating normally. Overall, the market supply is sufficient, and there is no shortage of goods.

Demand side:

High temperatures and rainy weather continue to affect downstream demand. Downstream enterprises mainly focus on digesting existing inventories, conducting only limited procurement for rigid demand, especially in industries such as SAP and polyacrylamide where downstream demand is relatively weak

Market Sentiment:

The continuous decline in prices has led to strong bearish sentiment in the market, with buyers generally adopting a wait-and-see attitude, anticipating further price drops. Transactions mainly consist of small orders at lower prices, resulting in overall sluggish trading activity.

Future Outlook:

Although the raw material propylene may see a slight increase, there is still room for profit in acrylic acid. Given the oversupply situation, it is expected that manufacturers will continue to offer discounts to sell their products. In the short term, the acrylic acid market in China may maintain a weak operating trend.