1、 Market dynamics
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The acrylic acid market remains stable with slight price fluctuations but overall trend remains stable. As of February 17th, the benchmark price of acrylic acid in Shengyi Society was 7737.50 yuan/ton, an increase of 0.16% compared to the beginning of this month (7725.00 yuan/ton). The recent rise in crude oil prices and strong bullish sentiment in the market have provided some support for the price of acrylic acid.
2、 Rising raw material prices
Acrylic is the main raw material for the production of acrylic acid, and its price fluctuations directly affect the production cost of acrylic acid. Recently, the market price of propylene has risen, leading to an increase in the production cost of acrylic acid, which in turn has pushed up the market price of acrylic acid. As of February 17th, the benchmark price of propylene in Shengyi Society was 6858.25 yuan/ton, an increase of 0.51% compared to the beginning of this month (6823.25 yuan/ton).
3、 Supply shortage
1. Device maintenance and load reduction: Some acrylic acid production enterprises are undergoing annual maintenance or load reduction production of their devices, resulting in a decrease in the operating level of the acrylic acid industry and a reduction in market supply.
2. Increased concentration of production capacity: In recent years, China’s acrylic acid industry has continuously expanded its production capacity, and some large enterprises have improved their profitability by optimizing their production capacity structure and controlling production volume. This has increased the concentration of the industry and to some extent limited the market supply of acrylic acid.
4、 Downstream demand remains stable
Despite the price increase in the acrylic acid market, downstream demand remained stable overall and there was no large-scale demand explosion. This has led to the acrylic acid market maintaining a strong operation despite tight supply, resulting in sustained price increases.
5、 Market mentality and expectations
With the rise in acrylic acid prices, market sentiment has been boosted. Some downstream users have started to digest contracts, but the sustained high volatility of prices has also prompted some downstream users to enter the market for replenishment. At the same time, market participants hold a certain optimistic expectation for the future market trend, which has also played a driving role in the rise of acrylic acid prices.
Overall, the recent rise in the acrylic acid market is mainly due to the increase in raw material prices and tight supply. It is expected that the overall price of acrylic acid will be relatively strong next week, with a floating range of 50-100 yuan/ton. After the 15th Five Year Plan, enterprises gradually started production, and the demand for acrylic acid was relatively flat, with some support for raw material prices. Therefore, it is expected that the production of acrylic acid will continue to increase next week, and the mainstream price of acrylic acid in East China is expected to remain stable at 7700-8000 yuan/ton.
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