This week, the core state of the acrylic acid market is “weak supply-demand balance, price stalemate”. As of December 3rd, the benchmark price of acrylic acid in Shengyi Society was 6083.33 yuan/ton, unchanged from the beginning of this month.
| Gamma-PGA (gamma polyglutamic acid) |
Market characteristics: Downstream users mainly digest contracts or inventory, with limited follow-up on spot goods, a strong wait-and-see atmosphere in the market, and light trading.
1. Cost support
As of December 3rd, the benchmark price of propylene in Shengyi Society was 6168.25 yuan/ton, a decrease of 0.2% compared to the beginning of this month (6180.75 yuan/ton). The price of raw material propylene is still at a high level, and the production cost is high, which has led to weak willingness of enterprises to reduce prices and sell. Provided a solid bottom support for the price of acrylic acid, making it difficult for it to fall significantly.
2. Adequate supply
The main production equipment operates stably and the overall supply is sufficient. Adequate supply has eliminated the expectation of price increases caused by supply shortages. Forming the ‘stabilizer’ of the market also means a lack of supply side momentum to drive price increases.
3. Weak demand
The demand for major downstream areas such as coatings and adhesives has not shown significant improvement, and there is insufficient follow-up on terminal orders. This is the key to the current stalemate. Downstream users generally hold a cautious attitude and adopt a “buy as you go” strategy, lacking the motivation to concentrate on stocking or chasing price increases.
Overall, without significant positive news stimulation (such as cost side changes or demand side outbreaks), the acrylic acid market is likely to continue a weak equilibrium pattern of narrow fluctuations in the short term.
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