Insufficient Demand Causes Acrylic Market to Decline

August 11th, News

This week, the acrylic acid and its esters market in East China generally showed a weak consolidation trend, with prices of various products slightly declining, reflecting the current situation of weak market demand and insufficient trading activity. As of August 11, the benchmark price of acrylic acid was 6200.00 CNY/ton, a decrease of 6.77% compared to the beginning of the month (6650.00 CNY/ton). The main reason for this decline is the low procurement willingness from downstream terminals, resulting in a light trading atmosphere. Holders have had to lower their offer prices to promote transactions.

Demand Side:

Notably, the methyl methacrylate market has shown relatively strong performance, with prices stabilizing at 10,550 CNY/ton. High-end quotes have even slightly increased to 10,600 CNY/ton, but actual transactions remain limited, and downstream factories are mainly purchasing according to demand, indicating that the supply-demand structure of this product has not significantly deteriorated yet. The pure acrylic emulsion market also remains stable at 6,200 CNY/ton, possibly due to the temporary stability in downstream industries such as coatings.

The main pressure currently facing the acrylic acid industry chain in China comes from the demand side: on one hand, the traditional off-season combined with insufficient operating rates in some end-user industries has led to difficulty in releasing actual transaction volumes; on the other hand, fluctuations in the price of propylene, a raw material, and uncertainties in the crude oil market have further intensified the wait-and-see attitude in the market. In the short term, it is expected that the market will continue to maintain a narrow range of fluctuations. If there is no significant increase in demand or support from the cost side, prices may continue to trend weaker.

Supply Side:

As of August 11, the benchmark price of propylene was 6453.25 CNY/ton, an increase of 0.31% compared to the beginning of the month (6433.25 CNY/ton). Although prices rose slightly this week, the market trading atmosphere is weak. Downstream factories have limited acceptance of high-priced raw materials, and the procurement pace has slowed down, leading to pressure on producers' shipments. Some manufacturers have offered small discounts to promote transactions. The current market supply and demand situation is slightly loose, and the weakening of some downstream derivatives (such as PP, PO, etc.) further suppresses the demand for propylene.

The current acrylic acid market in China maintains a weak pattern, with a light trading atmosphere and actual transaction prices tending to operate at the lower end of the range. Downstream users lack enthusiasm for purchasing, mostly adopting a wait-and-see attitude. The market lacks strong support and may continue to show a weak trend in the short term.

Butyl acrylate market is also under pressure, with mediocre performance on the demand side. Downstream enterprises are only maintaining rigid replenishment, and inquiries for entering the market are cautious, leading to a generally bearish market sentiment. Although traders intend to keep their quotes stable, the negotiation focus still shows signs of loosening due to weak transactions.

Overall, it is expected that the acrylic acid market in East China will continue to be weak and consolidate next week, with limited price fluctuation; the butyl acrylate market may maintain a volatile trend, and local declines cannot be ruled out under the game of supply and demand. It is recommended to closely monitor the changes in the price of propylene, the raw material, and the recovery of downstream demand to determine the next move of the market.