Recently, in response to the narrow downward trend of the acrylic acid market, the strong downstream wait-and-see atmosphere, and the significant reduction in acrylic acid imports and the expected increase in exports in 2024, the following is an analysis of the market situation:

 

1、 Current situation of acrylic acid market

 

Price and demand

 

The current market price of acrylic acid is showing a narrow downward trend, which may lead downstream enterprises to adopt a wait-and-see attitude towards the market prospects, thereby forming a strong wait-and-see atmosphere. As of November 26th, the benchmark price of acrylic acid in Shengyi Society was 6850.00 yuan/ton, a decrease of 0.17% compared to the beginning of this month (6862.00 yuan/ton).

 

The sluggish demand in downstream industries has also exacerbated market volatility, resulting in a weak overall performance of the acrylic acid market.

 

Raw material prices

 

The main raw material for acrylic acid is propylene, and its price fluctuates due to the supply and demand relationship in the crude oil market and petrochemical industry. The rise in raw material prices will increase the production cost of acrylic acid, thereby affecting the production enthusiasm and supply capacity of enterprises. As of November 25th, the benchmark price of propylene in Shengyi Society was 6773.25 yuan/ton, a decrease of -0.18% compared to the beginning of this month (6785.75 yuan/ton).

 

Capacity and Supply

 

In the first half of 2024, the supply of acrylic acid in China showed an increasing trend. In June 2024, the monthly production of acrylic acid in China was 266500 tons, with a monthly operating rate of 72.51%, indicating a high production level. With the increase of production capacity, the market supply capacity continues to strengthen, which may also exert some downward pressure on market prices.

 

However, due to fluctuations in market demand and the impact of the global economic situation, the supply of acrylic acid has not been fully converted into market demand, resulting in some production capacity not being fully utilized.

 

2、 Analysis of Import and Export Situation

 

Significant reduction in imports

 

In 2024, there will be a significant decrease in the import volume of acrylic acid, which may be related to various factors such as price differences between domestic and foreign markets, trade policy adjustments, and increased domestic production capacity.

 

The reduction of imports can help alleviate the supply pressure in the domestic market, but it may also have an impact on downstream enterprises that rely on imported raw materials.

 

Expected increase in exports

 

Despite the challenges posed by the global economic slowdown and uncertain trade environment, there are still expectations of incremental growth in China’s acrylic acid exports. This is mainly due to the increase in China’s acrylic acid production capacity, improvement in product quality, and increased recognition of Chinese products in the international market.

 

3、 Market Outlook and Suggestions

 

Market outlook

 

The future acrylic acid market will still face certain challenges and uncertainties, but the overall trend is expected to maintain stable growth. With the acceleration of industrialization and the development of emerging fields, the market demand for acrylic acid and its related products is expected to continue to increase.

 

proposal

 

For acrylic acid production enterprises, they should closely monitor market dynamics and changes in customer demand, strengthen technological innovation and product upgrades, and improve product quality and competitiveness.

 

At the same time, actively exploring international markets, expanding export share, and reducing the risk of dependence on a single market. For downstream enterprises, they should strengthen cooperation and communication with upstream enterprises to jointly respond to the challenges and opportunities brought by market changes.

 

In summary, the acrylic acid market has experienced a period of upward trend, but due to market trends, supply and demand relationships, cost support, and other factors, it has shown an overall downward trend this week.

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