1、 Market price trend
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The market price of acrylic acid shows a fluctuating upward trend, but the upward trend has narrowed. This is mainly due to the result of the game between supply and demand, where the contradiction between the expected release of supply and the weak growth of downstream demand makes it difficult for prices to break through. Despite the price increase, the upward space for prices will narrow, and the market will consolidate within a certain range. As of January 21st, the benchmark price of acrylic acid in Shengyi Society was 7725.00 yuan/ton, an increase of 2.32% compared to the beginning of this month (7550.00 yuan/ton).
2、 Market supply and demand situation
1. Supply side:
The recent maintenance and resumption of production of acrylic acid plants have had a direct impact on the supply side. Due to maintenance or reduced load operation, some devices have maintained a narrowing trend in the utilization rate of acrylic acid production capacity. However, with the gradual resumption of maintenance equipment, the supply side is expected to release more production capacity.
At the same time, some newly added production capacity is about to be put into operation, which will further increase market supply. However, there is uncertainty in the production progress and capacity release of newly added capacity, and the specific impact on market supply is still difficult to determine.
2. Demand side:
The main downstream application areas of acrylic acid include coatings, adhesives, textile auxiliaries, water treatment agents, etc. However, downstream demand has not significantly increased in recent times, and companies have maintained cautious inventory management strategies, leading to increased market wait-and-see sentiment. Due to the expected release on the supply side, but weak growth in downstream demand, the market is in a stalemate.
3、 Market competition pattern
The competition in the acrylic acid market is fierce, and companies may adopt price reduction strategies to compete for market share. However, in situations of supply-demand imbalance, this strategy may not work as expected. Some companies may choose more sustainable development plans, such as improving product quality and optimizing production processes to reduce costs and enhance competitive advantages.
4、 Cost effectiveness:
Propylene is the main raw material for the production of acrylic acid, so fluctuations in propylene prices will directly affect the production cost of acrylic acid. When the price of propylene rises, the production cost of acrylic acid increases accordingly. In order to maintain profit levels, acrylic acid producers usually increase their selling prices. On the contrary, when the price of propylene drops, the production cost of acrylic acid decreases, and producers may lower their sales prices to compete for market share. As of January 21st, the benchmark price of propylene in Shengyi Society was 6865.75 yuan/ton, an increase of 0.44% compared to the beginning of this month (6835.75 yuan/ton).
5、 Market outlook
In the short term, the acrylic acid market is likely to continue to maintain a volatile consolidation state. Although the expectation of supply side release is gradually increasing, the weak growth of downstream demand remains a major concern in the market.
In the long run, the acrylic acid industry has broad market demand and stable growth prospects. The development of emerging markets and the acceleration of industrialization will drive the continuous increase in demand for acrylic acid and its related products.
In summary, the acrylic acid market is currently in a state of stalemate and consolidation within the market. This is mainly due to the outcome of the game between supply and demand, as well as the impact of weak downstream demand growth. The future market trend will depend on further competition between supply and demand sides, as well as changes in the macroeconomic environment.
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