This week, the acrylic acid market has indeed shown a strong upward trend and continuous price increases, mainly due to the tight domestic supply of acrylic acid.
1、 Price trend of acrylic acid market
According to the latest market price data, the average price of acrylic acid in the mainstream market across the country has shown an upward trend in recent times. As of December 24, 2024, the price was 7150 yuan/ton, showing a significant increase compared to previous days. This upward trend corresponds to the strong operation of the acrylic acid market this week, indicating that the market supply and demand relationship is still tight, leading to price increases.
2、 Analysis of Acrylic Acid Supply Surface
1. Device maintenance and load reduction: The operating level of the acrylic acid industry remained at around 70% this week, a decrease from the previous week. This is mainly due to some acrylic acid units undergoing maintenance or load reduction production.
2. Increased concentration of production capacity: In recent years, the production capacity of China’s acrylic acid industry has continued to expand, but market competition has also intensified. With the increasing concentration of industry production capacity and the improvement of upstream and downstream supporting facilities in the industrial chain, some large enterprises such as Wanhua Chemical and Satellite Chemical have reduced production costs and improved their profitability by optimizing their production capacity structure and controlling output. This also affects the supply of acrylic acid to a certain extent.
In addition, changes in the price of raw material propylene have also had a significant impact on the market price of acrylic acid. Propylene is the main raw material for the production of acrylic acid, and its price fluctuates due to the influence of the crude oil market and the supply and demand relationship in the petrochemical industry. When the price of propylene rises, the production cost of acrylic acid increases, which in turn drives up market prices. This cost driven price increase mechanism is particularly evident in the acrylic acid market.
3、 Analysis of Acrylic Acid Demand Surface
In terms of demand, the market demand for acrylic acid and its related products continues to increase, driving the rapid development of the industry. The downstream of the acrylic acid industry chain is widely used in fields such as coatings, adhesives, textiles, plastics, etc. The demand for acrylic acid and its derivatives in these industries directly determines the production volume and product structure of the acrylic acid industry. With the acceleration of industrialization and the development of emerging fields, the demand for acrylic acid market has shown a stable growth trend, which further exacerbates the tightness of market supply.
Despite the tight supply of acrylic acid, downstream demand remains stable overall. Downstream products of acrylic acid, such as acrylic esters, refined acid, and SAP, have overall followed the trend of acrylic acid. However, some downstream products, such as acrylic acid lotion and water reducer, are still mainly purchased in just need, without large-scale demand explosion. This has led to the acrylic acid market being able to maintain a strong operation despite tight supply, but with limited growth.
4、 Future prospects
Looking ahead to the future, it is expected that the acrylic acid market will continue to maintain a strong operating trend. On the one hand, there are still issues with the shutdown and maintenance of supply side equipment, and the supply of spot goods is becoming increasingly tight; On the other hand, the intention of companies to push up their offers is still strong, and the social inventory of spot goods is limited. Under the combined action of these factors, the price of acrylic acid market will continue to rise. However, it should also be noted that the slow follow-up speed of downstream demand and the sales pressure of holders may have a certain impact on the market. Therefore, the specific increase needs to pay attention to the increase in market demand and downstream industry orders.
In summary, the continued upward trend and strong operation of the acrylic acid market this week are mainly due to tight supply. The future market trend still needs to closely monitor changes in supply and demand relationships as well as the dynamics of upstream and downstream industrial chains.
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