This week, the acrylic acid market experienced a significant broad decline. The formation of this trend is mainly influenced by the cautious and wait-and-see attitude of downstream markets. As of June 4th, the benchmark price of acrylic acid in Shengyi Society was 7333.33 yuan/ton, a decrease of -6.38% compared to the beginning of this month (7833.33 yuan/ton).
Supply and demand side:
The production and supply of acrylic acid are relatively sufficient, but downstream demand has not kept up with this pace. Downstream customers have generally adopted more cautious procurement strategies in the face of market uncertainty, resulting in insufficient market demand for acrylic acid. This supply-demand imbalance has further exacerbated the decline in acrylic acid prices.
From a technical perspective, the production technology of acrylic acid is relatively mature and the market competition is fierce. In order to compete for market share, some manufacturers have had to adopt a price reduction strategy, which has further driven down the price of acrylic acid.
Cost side:
Raw material propylene: Affected by the weakening of crude oil and the restart of PDH units, the price of propylene fell to 6555.75 yuan/ton (a monthly decrease of 2.15), and the cost line of acrylic acid further shifted downwards.
Looking ahead to the future:
The trend of the acrylic acid market will depend on the combined effect of multiple factors. On the one hand, the degree of recovery of downstream demand will directly affect the price trend of acrylic acid. If downstream demand can gradually recover, the price of acrylic acid is expected to stabilize and rebound. On the other hand, changes in the macroeconomic environment will also have a significant impact on the acrylic acid market. If the global economic situation can stabilize, the acrylic acid market is also expected to usher in new development opportunities.
In summary, the broad decline in the acrylic acid market this week was mainly influenced by the cautious wait-and-see attitude of downstream investors. In the future, the trend of the acrylic acid market will depend on the combined effect of multiple factors, and all parties need to closely monitor market dynamics.