Lead-in: Persistently high propylene prices and a rapid increase in direct raw material costs are pushing the acrylic acid industry into losses. As of September 10, the weekly average profit for acrylic acid had fallen into negative territory, while spot prices for propylene in Shandong broke through the RMB 10,000 per ton mark. Under the dual pressure of declining cost pass-through efficiency and intensifying supply-demand dynamics, the scope of losses in the acrylic acid sector continues to widen.
I. Resilient Propylene Prices Exert Significant Pressure on Acrylic Acid
Recently, domestic propylene market prices staged a strong rebound after an initial decline. During the week, bearish sentiment spread among market participants, dampening downstream purchasing enthusiasm. To avoid inventory accumulation risks, producers softened their offers and adjusted prices downward. However, as propylene prices became more attractive, downstream restocking interest gradually recovered. This recovery was further supported by strengthening cost fundamentals, tighter local supply, and positive news regarding expected shutdowns at certain plants. The convergence of these factors boosted the market, driving a strong rebound in propylene prices. By September 10, mainstream transaction prices for propylene in Shandong reached RMB 10,000 per ton, representing a week-on-week increase of 5.71%.
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