Field Low Prices Decrease, Acrylic Acid Market Remains Firm

October 10, news

After the National Day holiday, the acrylic acid market did not show any signs of weakness; instead, it experienced a robust trend with both volume and price increasing. The core characteristic of the market, "a decrease in low prices within the market," is not just a phenomenon but also a concentrated reflection of the subtle balance between supply and demand.

Market Overview: Strong Start, Shifting Focus Higher

As of October 10, 2025, the Chinese acrylic acid market has had a strong start. The benchmark price of acrylic acid is 6983.33 CNY/ton, which is a 4.23% increase compared to the beginning of this month (6700.00 CNY/ton). This rise is the result of a combination of supply, cost, and sentiment factors.

1. Supply Side:

The capacity utilization rate was proactively reduced: Data shows that on October 9, the average capacity utilization rate of China's acrylic acid industry dropped to 76.44%, a decrease of 1.45 percentage points from the previous period. This is not a coincidence; some factories, considering inventory and cost factors before the holiday, had already reduced their load or shut down for maintenance, leading to a significant tightening of spot supply after the holiday.

Inventory structure remains healthy: Before the holiday, downstream buyers and traders were cautious about stocking up, resulting in relatively low social inventories. Upon returning after the holiday, retailers and manufacturers face a generally tight supply situation, yet inventory pressure across channels and factories remains mild—providing sellers with a solid foundation to maintain higher price levels.

2. Cost End:

As of October 10, the benchmark price for propylene stood at 6,588.25 CNY per ton, representing a 0.69% increase compared to the beginning of this month (6,543.25 CNY per ton). Prices remain at historically high levels, significantly bolstering producers' determination to maintain current pricing. As a result, they are now less inclined to engage in price wars and are instead opting to stabilize market prices by either reducing or eliminating their lower-priced offers—this is the primary reason behind the "reduction in low-price bids within the market."

3. Demand Side:

Essential restocking to stabilize supply: Downstream industries (such as SAP, resins, emulsions, and others) haven’t experienced explosive growth, but their rigid demand remains steady. After the holiday period, there’s a natural wave of necessary inventory replenishment—this "hard demand" is sufficient to absorb the currently tight availability of spot resources.

Market sentiment has changed: The signals of supply tightening and cost support have been clearly transmitted to the market, leading to a shift in the mentality of both buyers and sellers. Sellers have transitioned from "actively selling" to "holding back and supporting prices," while buyers, worried about further price increases or the disappearance of low-priced supplies, have shifted from "watching and pressing for lower prices" to "purchasing as needed." This change in mindset has accelerated the clearance of low-priced sources in the market and pushed the overall transaction focus upward.

In summary, the current "resilient performance" of the acrylic market represents a temporary victory driven by weak fundamentals combined with strong cost and supply expectations. This trend largely highlights how, amid razor-thin profit margins, supply-side constraints are effectively propping up prices. Traders should closely monitor upstream propylene price movements, major plants' planned operating schedules, and the status of meaningful downstream orders—these factors will serve as critical indicators for gauging the market's next directional move.