After the holiday, the acrylic acid market showed a quiet and stable operating trend. As of February 6th, the benchmark price of acrylic acid in Shengyi Society is 7725.00 yuan/ton, which is the same as the beginning of this month.
1、 Market quotation and transaction situation
Returning after the holiday, the market price of acrylic acid is mostly stable with a moderate upward trend. Although the follow-up of new orders has slowed down compared to the previous period, the manufacturer’s mentality is firm, and market demand is holding a moderate purchase at low prices.
In the case of good transactions in the low-end supply of goods in the market, manufacturers tend to execute pre-sale orders, and some companies even stop quoting, creating a clear upward trend in the market.
2、 Supply side
After the holiday, some acrylic acid factories were in a state of shutdown and maintenance, resulting in a shortage of spot supply. This supply side contraction has to some extent offset the pressure of insufficient demand and pushed the price of acrylic acid to remain stable and strong.
With the resumption of some facilities, the expected utilization rate of acrylic acid production capacity is expected to slightly increase, and market supply is expected to be supplemented. However, due to the factory’s low expectations for market volume and the tight supply of goods in some regions such as southern China, the sales pressure on holders may not be significant.
3、 Demand side
The downstream industry mainly purchases acrylic raw materials for immediate needs and has a general intention to accept high priced goods. This has led to limited actual demand growth and a relatively cautious market trading atmosphere.
With the gradual resumption of work in downstream industries and further recovery of demand, it is expected to have a certain alleviating effect on the supply-demand imbalance in the acrylic acid market. However, until demand fully recovers, the market will still maintain a certain wait-and-see attitude.
4、 Cost and Profit
Recently, the price of raw material propylene has fluctuated within a narrow range, which has limited impact on the cost fluctuations of acrylic acid. As of February 6th, the benchmark price of propylene in Shengyi Society was 6943.25 yuan/ton, an increase of 1.76% compared to the beginning of this month (6823.25 yuan/ton).
With the continuous rise in acrylic acid prices, the industry’s profitability level continues to rebound. However, the improvement of profitability still needs to pay attention to changes in factors such as raw material prices, supply and demand relationships, and market competition.
5、 Future prospects
Overall, the post holiday sentiment in the acrylic acid market is stable but slightly strong, with rising prices but cautious trading atmosphere. With the gradual resumption of work on the supply side and further recovery of downstream demand, the market supply-demand contradiction is expected to be alleviated.
However, until demand fully recovers, the market will still maintain a certain wait-and-see attitude. Therefore, it is recommended that acrylic acid industry enterprises closely monitor market dynamics and supply and demand changes, and reasonably arrange production and sales plans to cope with market fluctuations.
In summary, after the holiday, the atmosphere in the acrylic acid market is quiet but shows a stable to strong trend. Against the backdrop of supply side contraction, gradual recovery of demand side, and limited fluctuations in cost side, the acrylic acid market will maintain a certain upward momentum, but the trading atmosphere is relatively cautious.
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