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Acetic acid, an essential organic synthesis feedstock and synthetic resin monomer, is an extremely rapid polymerizer of ethylene monomers. Is the simplest unsaturated carboxylic acid, consisting of a vinyl group and a carboxylic group. Pure acrylic is a clear, colorless liquid with a characteristic pungent odor. It is insoluble in water, alcohol, ether, and chloroform, and is prepared from propylene obtained from refineries. Most of these are used in the manufacture of methyl acrylate, ethyl esters, butyl esters, hydroxy ethyl esters and additional acrylates. Acetic acid and acrylates can be homopolymerized and copolymerized to form polymers used in synthetic resins, synthetic fibers, superabsorbent resins, building materials, coatings and other industrial sectors. Acrylic acid melting point 13.5℃, boiling point 140.9℃.Since the industrial production of acrylic acid and esters in the 1930s, it has undergone oxidation by cyanoethanol, REPPE, ketene, acrylonitrile hydrolysis, and propylene oxide. The first four technologies have been essentially eliminated for technical and economic reasons. The propylene oxidation process, developed in the 1960s, was initially divided into one-step and two-step processes. Acrylic plants built and expanded after the 1980s used a two-step process of oxidation of propylene. BASF closed its last Reppe plant in Ludwigshafen, Germany, in 1995, and Ciba Specialized Supplies discontinued its only egalitarian plant in Bradford, England, in 1999.​ As a result, propylene oxide became the only way to produce acrylic acid at present.The propylene oxidation process uses propylene to be oxidized into acrylic acid by air under the action of a catalyst. There are two approaches: 1.Direct oxidation of propylene into acrylic acid;2.The propylene is first oxidized to acrolein and then further oxidized to acrylic acid.
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Investment in the Chinese acrylic acid market has not decreased and upstream and downstream integration remains the main driving force for the development of the industry.

Between 2023 and 2027, a total of 1.655 million tons of acrylic acid products are expected to come on stream from seven new Chinese enterprises, including large-scale refining and chemical integration projects.Due to the large scale of investment, complete industrial chain, its cost advantage is obvious, coupled with mature management and channel construction, profit cyclical strong, they have a relative advantage in the chain of each link of the cost and price, is expected to 2023-2027 China acrylic products industry pattern will also produce significant changes.

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Overview of acrylic acid industry development in China

Acrylic acid market and gross profit trend review

Compared to 2021, when the domestic economy is significantly affected by "energy efficiency dual control", the "high temperature electricity restriction" policy in 2022, although the overall impact is limited, still has a significant effect on the trend of domestic organic chemicals. The domestic acrylic market as a whole showed a weak trend, especially the second quarter did not break the bottom, and the operational confidence of market players continued to be impaired. While there was a brief rebound, the overall push was limited. The performance was as follows:While oil prices remained high and volatile in the first quarter due to geopolitical and other factors, combined with the maintenance of some domestic installations, positive supplies continued to ferment, the focus of market negotiations around the push. As the pandemic continues to spread and containment management is carried out on behalf of the Shanghai region, domestic acrylic terminal demand has been greatly affected, its social inventory digestion is slowing down, the peak season is not prosperous and a weaker off-season is evident.In addition, the acrylic market itself supply and demand contradiction prominent constraints on market operation, especially in the second half of 2022 acrylic industry load is not high, although the second quarter and the early third quarter of a longer period of price adjustment makes acrylic profit restricted, the price further down the space narrowed, and losses under the pressure of the factory price intention is obvious, but the terminal mentality continues to be cautious, Users just need to buy, acrylic market reaction relative to the first half of 2022 flat, negotiate activity except "gold nine silver ten" overall performance is insufficient, the market stalemate situation to the end of the year.
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Trend outlook of supply and demand pattern of acrylic acid industry in China
The acrylic market volume shift is predicted by the characteristics of acrylic phase supply and demand shifts and the influence of medium and long-term product expansion factors, combined with acrylic market data and industry characteristics from previous years.The details are as follows: 2023-2027E due to the expansion of existing acrylic industry leaders such as Huayi, Yangzi BASF and Wanhua Chemical, resulting in an increase in the commercial volume of acrylic acid supply from 2018-2022 to an annual average or level of 380-440,000 tons.In terms of the overall industrial chain, extending from upstream raw materials to industrial end products not only reduces production costs and improves product competitiveness, but also effectively avoids risks and the industrial chain may be further optimized.

Trend outlook of supply and demand pattern of acrylic acid industry in China

The acrylic market volume shift is predicted by the characteristics of acrylic phase supply and demand shifts and the influence of medium and long-term product expansion factors, combined with acrylic market data and industry characteristics from previous years. The details are as follows: 2023-2027E due to the expansion of existing acrylic industry leaders such as Huayi, Yangzi BASF and Wanhua Chemical, resulting in an increase in the commercial volume of acrylic acid supply from 2018-2022 to an annual average or level of 380-440,000 tons.In terms of the overall industrial chain, extending from upstream raw materials to industrial end products not only reduces production costs and improves product competitiveness, but also effectively avoids risks and the industrial chain may be further optimized. It is expected that in 2025-2026, with the end of the adjustment period for the acrylic industry, the industry and the stability of the manufacturers will start to work and the industry will develop or maintain a positive trend.Acrylic industry in the years 2023-2025 will usher in new opportunities and challenges.
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Future Chinese market analysis outlook

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