A Strong Wait-and-See Atmosphere Leads to a Slight Weakening in the Acrylic Market

November 26th, according to news from China

This week, the Chinese acrylic acid market as a whole showed a stable but slightly weak operation trend driven by supply and demand, lacking clear directional momentum. The most notable feature of the market was the downward shift in price levels. As of November 26, the benchmark price of acrylic acid was 6,150.00 CNY/ton, which is about a 5% decline from the earlier high of 6,500 CNY/ton this month.

1. Supply side:

The stable operation of the market is mainly due to stable supply. Major producers such as Wanhua Chemical and Shanghai Huayi have reported normal operations of their facilities. Adequate supply has ensured the availability of goods in the market, eliminating the expectation of price increases due to shortages, which leaves the market lacking upward momentum.

2. Demand Side:

In the case of ample supply, the demand from downstream sectors is relatively weak, failing to provide effective support. This has led market participants to adopt a cautious approach, primarily purchasing according to their needs, with little interest in stockpiling or chasing higher prices. According to the data, current prices are at a relatively low level for the year, reflecting this cautious market sentiment.

3. Cost Side:

As of November 26, the benchmark price of propylene was 6,098.25 CNY/ton, an increase of 0.66% compared to the beginning of the month (6,058.25 CNY/ton) in China. This has directly raised the production cost of acrylic acid, reducing producers' willingness to lower prices for sales, as profits have already been squeezed. The cost provides a solid "floor" for the price of acrylic acid, preventing it from declining significantly.

Overall, it is expected that the acrylic acid market in China will continue to maintain a pattern of slight fluctuations and overall stability in the short term.

Limited Upside Potential: Due to ample supply and the absence of a significant surge in demand, prices are finding it difficult to gain strong upward momentum.

Downward Support Exists: On the other hand, the current price has already reached a temporary low, and the profit margins of manufacturing companies have been squeezed. Factors such as raw material costs will provide a certain bottom support, limiting the room for prices to fall sharply further.

In summary, the current acrylic market is a typical “both supply and demand are weak” stable market. In the absence of major news to provide impetus, this stalemate is likely to persist for some time.