However, to better fit the context and make it more natural in English, you might consider:
[Strong Market Fundamentals but Weak Costs Keep Acrylic Prices at High Levels]
September 8 news
I. Market Overview: Prices Show a Slight Increase, Remaining at High Levels
This week, the Chinese acrylic acid market showed a fluctuating upward trend. According to the data, the benchmark price of acrylic acid on September 8th was 8,350.00 CNY per ton. Compared to the beginning of the month (September 1st) at 8,233.33 CNY per ton, it increased by 1.42% week-over-week.
From the price trend, after a brief period of stability, the market saw a significant rise at the beginning of the week (with a 1.21% price increase on September 4), followed by consolidation at a high level.
Technical Analysis: The bullish formation is established, and it is in a strong position.
Combining the moving average chart and the five-level position data, the current technical characteristics of acrylic acid in China are as follows:
As shown in the figure, the 5-day moving average (red), 10-day moving average (cyan), and 20-day moving average (green) are sequentially diverging upwards. This indicates that both the short-term and medium-term trends are positive, with buying power dominating the market.
Data shows that as of September 7, the price of acrylic acid is at a "high position" in the 10-day, 20-day, 30-day, 60-day, and 90-day periods. This indicates that the recent price has broken through the fluctuation range of the past three months and entered a track of relatively high values.
Analysts believe: Currently, the 10-day moving average is significantly higher than the 20-day moving average, with a positive and expanding difference, confirming that the current upward initiation signal is valid. There are no obvious signs of a "crossover" adjustment in the short term.
3. Fundamental Analysis: Supply and Demand Dynamics and Cost Discrepancies
Despite the rise in finished product prices, the upstream raw material sector in China has shown an opposite trend.
On September 8, the benchmark price of propylene, an upstream raw material, was 9,034.33 CNY/ton, a decrease of 2.10% from the beginning of the week. The decline in raw material prices theoretically weakens the cost support for acrylic acid.
In the context of falling raw material prices, acrylic acid prices remain firm or even rise, mainly due to the supply and demand dynamics. Acrylic acid manufacturers and inventory holders have adopted a strategy of maintaining stable prices to protect their profit margins, offsetting the negative impact of the decline in cost. The control of market spot circulation has forced downstream buyers to accept higher prices.
4. Future Market Outlook
Overall, the acrylic acid market in China is currently in a situation of "strong reality, weak costs."
Short-term Forecast: Given that the moving average system is diverging upward and remains at historically high levels, market inertia persists. We expect acrylic acid to continue its range-bound trading pattern next week.
Key Focus: It is crucial to closely monitor whether the price of propylene, the raw material, will stop falling and stabilize. If propylene continues to decline sharply, it could further squeeze factory profits, prompting factories to cut production to maintain prices or even force them to lower their factory prices. Conversely, if downstream demand remains strong and high-priced transactions can increase in volume, prices could potentially break higher.
