Cost-side pressures have eased somewhat. The acrylic acid market exhibits a coexistence of high and low prices, trading weakly within a narrow range.

Introduction: Upstream propylene prices remain firm, while downstream terminal demand lacks momentum. The market exhibits a coexistence of high and low price levels. Factories maintain strong offer prices, whereas some traders are offering discounts to move inventory. A tug-of-war exists between cost-side support and weak demand, leading to differentiated trading activity. Transactions are primarily driven by rigid demand, with cautious stockpiling. In the short term, the market is expected to trend weakly within a range.

I. Cost Side

International crude oil fluctuations and tight supply have pushed the center of gravity for propylene prices higher, after which they entered a consolidation phase at elevated levels. Production costs for acrylic acid have eased slightly, but cost support remains intact. Factories show strong willingness to hold prices; however, in an environment of insufficient demand, cost pressures are not effectively transmitted, making it difficult to drive sustained price increases. Consequently, the market may enter a state of weak operation.

Overall, the continuous rise and sustained strength of upstream propylene were the primary drivers behind the recent increase in acrylic acid prices. As cost-side pressure eases, the acrylic acid market is trending weakly within a range.

II. Supply and Demand

Recently, factory operating rates have declined as plants such as Kaitai and Huayi initiated maintenance shutdowns, reducing the volume of spot goods circulating in the market. Current factory inventory pressure is low, and there is a clear intention to hold prices, with little willingness to cut prices in the short term. Some inventory holders are under pressure and are offering discounts to sell, resulting in a market situation where high and low prices coexist. Most downstream users of acrylic acid are adopting a wait-and-see approach, hoping for price reductions. Some downstream buyers are seeking lower-priced trade sources, purchasing mainly in small volumes for rigid demand needs. Overall, there is a lack of concentrated restocking.

Overall, constrained by cost pressures, reduced supply, and low inventory levels, most factories intend to stabilize prices. Some inventory holders choose to offer discounts to sell towards the end of contract periods. On the demand side, bearish sentiment is strong, with inquiries focused on low prices and small-volume restocking. The acrylic acid market presents a pattern of coexisting high and low prices.

III. Intensified Supply-Demand Tug-of-War: Acrylic Acid Market May Continue Narrow Upward Trend

• Cost Side: Raw material propylene is expected to maintain a pattern of high-level volatility. The bottom-line cost support for acrylic acid remains, but further upside space is limited. If propylene prices subsequently fall, the cost support for acrylic acid will weaken accordingly. Overall, the cost side will likely consolidate at high levels, with no significant one-sided rises or falls expected.
• Supply Side: Maintenance units are gradually restarting, and some enterprises plan maintenance shutdowns towards the end of the month. Industry operating rates will fluctuate up and down, keeping domestic overall supply stable. Before the new contract cycle, inventory holders may continue to offer discounts to sell.
• Demand Side: Downstream users remain cautious, following rigid demand primarily. Expectations for large-scale restocking are weak. Overall demand lacks strong pulling power, making it difficult to sustain continuous breakthroughs in acrylic acid prices.

In summary, in the short term, the acrylic acid market continues to be caught in a tug-of-war between cost support and weak demand. The pattern of coexisting high and low priced goods persists, and the market is expected to trend weakly within a range. Continued monitoring of raw material propylene fluctuations and downstream sentiment changes is required.