Recently, the acrylic acid market is indeed facing expectations of supply side inventory release and the possibility of excessive market stalemate. The following is a detailed analysis of this phenomenon:

 

1、 Expected release of supply side inventory

 

Equipment maintenance and resumption of production:

 

This week, multiple sets of acrylic acid plants in China have maintained a narrowing trend in the utilization rate of acrylic acid production capacity due to maintenance or reduced load operation. At the same time, some devices have resumed production after maintenance, but overall, the incremental speed of the supply side is relatively slow.

 

Capacity and output:

 

The overall production capacity of the acrylic acid industry is relatively stable, but actual output has fluctuated due to factors such as maintenance. With the gradual resumption of production of maintenance equipment, the supply side is expected to release more production capacity, but the specific release speed and scale still need to be observed.

 

2、 The acrylic acid market may be deadlocked excessively

 

Price trend:

 

This week, the price of acrylic acid showed a slow upward trend, but the increase was relatively limited. Affected by the slowdown in the incremental supply of spot goods on the supply side, the intention of suppliers to make spot offers is relatively firm. As of November 19th, the benchmark price of acrylic acid in Shengyi Society was 6862.50 yuan/ton, an increase of 0.37% compared to the beginning of this month (6837.50 yuan/ton).

 

At the same time, downstream demand is relatively stable, with factories maintaining long-term inventory consumption and average inquiries from low-priced sources.

 

Market wait-and-see sentiment:

 

Due to the expected release on the supply side, but the downstream demand has not shown significant growth, the market has a strong wait-and-see sentiment. Traders and downstream users are more cautious when making purchases, resulting in a slower increase in market trading volume.

 

Supply and demand pattern:

 

The current supply and demand pattern in the acrylic acid market is relatively tight, but there has not been a serious imbalance. With the gradual release of supply and slow growth of downstream demand, the market is expected to reach a new supply-demand balance in the near future.

 

3、 Fluctuations in raw material prices

 

As the main raw material of acrylic acid, the price fluctuation of propylene directly affects the production cost of acrylic acid. Although the price of propylene has decreased slightly this week, the previous high price may still have a lagging impact on the production cost of acrylic acid. The fluctuation of raw material prices has caused some changes in the cost support of the acrylic acid market, but it has not completely broken the market’s stalemate. On November 19th, 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).

 

4、 Future prospects

 

Supply side:

 

The future supply side will continue to be affected by factors such as equipment maintenance, resumption of production, and new production capacity. It is necessary to closely monitor the maintenance plan and resumption progress of each device, as well as the production status of newly added capacity.

 

Demand side:

 

Downstream demand will continue to be influenced by factors such as macroeconomic environment, industry policies, and market competition. We need to pay attention to the development trends of downstream industries and changes in market demand, as well as the expansion of the application of acrylic acid in various fields.

 

Price trend:

 

The future price of acrylic acid will be influenced by various factors such as supply and demand patterns, cost pressures, and market competition. It is expected that the price will show a fluctuating upward trend, but the increase and speed will be constrained by various factors.

 

In summary, the acrylic acid market is indeed facing the expectation of supply side inventory release and the possibility of market deadlock in the near future. The future market trend will be influenced and constrained by various factors, and it is necessary to closely monitor market dynamics and related information in order to make timely and reasonable judgments and decisions.

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