Supply Tightening Dominates the Market, Acrylic Acid Prices Steady with an Uptick

September 17, News

This week, acrylic market prices showed a narrow upward trend. As of September 17, the benchmark price for acrylic was 6,416.67 CNY per ton, up 2.67% from the beginning of the month (6,250.00 CNY per ton). This indicates that the market is generally moving in a slow but steady upward channel.

Supply side:

The industry's capacity utilization rate improved compared to the previous week (72.84% on September 4 vs. 74.40% on September 11), but some manufacturers and traders remain firmly committed to maintaining higher price levels, adjusting their offers in line with market conditions—resulting in a reduction of lower-priced supply in the market.

Demand side:

Downstream users in China mainly focus on rigid demand procurement, with a low willingness to proactively stock up, primarily digesting contract orders and existing inventory. This tug-of-war between supply and demand is one of the main reasons for the narrow price fluctuations.

On the cost front: The price of propylene, the primary raw material, has slightly declined in the Shandong region (ranging from 6,530 to 6,570 CNY/ton, with a decrease of 50–80 CNY/ton). As a result, cost support has weakened somewhat, putting a moderate cap on the potential for acrylic acid prices to rise significantly—preventing any major upward surge.

Market Sentiment:

Traders have a relatively positive attitude, actively supporting the market, but actual transaction volumes in the market are moderate, with both buyers and sellers being cautious and focusing on real orders.

Future Prospects

Recently, it is expected that the acrylic acid market in China may continue to operate firmly. It should be noted that the trend in the price of propylene, the raw material, remains an uncertain factor. The follow-up of downstream demand is crucial; if demand cannot sustainably increase, the sustainability of price increases may be limited. It is recommended that industry players closely monitor the operational dynamics of major production enterprises and the inventory preparation status of downstream sectors.

Overall, this week the acrylic acid market in China, under the backdrop of weakening cost support and a slight increase in supply, achieved a modest upward trend through the price support from inventory holders and rigid demand. The market exhibited a fluctuating pattern with "resistance above and support below."