Introduction: Since the beginning of July, the domestic acrylic acid market has exhibited a fluctuating pattern of rising followed by falling. During the week, the price of raw material propylene declined from highs, gradually weakening cost-side support. On the supply side, due to a production cut at Wanhua Chemical's Yantai facility, industry capacity utilization narrowed. Downstream specialty ester and SAP producers have primarily relied on existing contracts and their own inventories, resulting in subdued spot procurement demand. Amid the ongoing tug-of-war between costs and supply-demand dynamics, industry profits for acrylic acid improved month-on-month, but overall market transactions remained cautious.
1. Cost Side: Propylene Declines from Highs, Weakening Support
Domestic propylene market prices fell from highs this week. International crude oil prices fluctuated upward during the period, and the shutdown of Wanhua Penglai's PDH unit provided some support to market sentiment. However, profit margins for downstream products continued to shrink, weakening corporate purchasing willingness. Meanwhile, the market is still absorbing the incremental supply brought by the restart of multiple plants earlier, resulting in a light trading atmosphere, with downstream buyers only making need-based purchases. Intensified competition among suppliers forced them to offer discounts to move goods, driving propylene prices lower on a fluctuating trend. Regionally, East China spot propylene prices continued to weaken, with sluggish downstream purchasing interest. Most transactions were conducted under long-term contracts, and spot trading of bulk cargoes was generally quiet. Upstream refineries and chemical plants proactively lowered their offers to offload products, dragging the mainstream transaction price center downward. As of July 23, the mainstream transaction price of propylene in Shandong was 8,375 RMB/ton, down 5.37% week-on-week; in East China, it was 8,380 RMB/ton, down 2.90% week-on-week.
2. Supply-Demand: Supply Contraction vs. Weak Demand
On the supply side, the reduced operating rate at Yantai Wanhua's acrylic acid unit narrowed industry capacity utilization. According to Chempricehub data, during this period (July 17-23, 2026), acrylic acid capacity utilization was 71.23%, down 1.9 percentage points from the previous week. Demand remained persistently weak. Downstream specialty ester and SAP producers primarily consumed previously signed contracts and their own inventories, with limited spot procurement. Downstream sectors such as coatings, superabsorbent polymers (SAP), and acrylate esters remained cautious. Although some downstream buyers made need-based restocking after acrylic acid prices rebounded, overall purchase volumes only met basic requirements. Looking at downstream operating rates, some acrylic acid downstream segments saw declines. For instance, butyl acrylate capacity utilization dropped from 53.70% last week to 50.48%, a decrease of 3.22 percentage points. End-user industries like real estate, infrastructure, and coatings showed generally weak demand. Downstream factories maintained only safety stock levels and refrained from large-scale inventory accumulation.
3. Profitability: Swing from Loss to Profit, Industry Confidence Strengthens
Despite subdued market trading, the profitability of the acrylic acid industry improved significantly. Chempricehub data shows that industry profit for this period reached 441 RMB/ton, an increase of 203 RMB/ton from 238 RMB/ton in the previous period, representing a surge of 85.29%. This substantial profit recovery is mainly attributed to two factors: First, in early-to-mid July, acrylic acid prices passively rose driven by cost-side pressures, but the increase lagged behind raw material price hikes, allowing processing margins to recover. Second, although propylene prices fell from highs this week, weakening cost support, acrylic acid prices remained relatively high, maintaining the spread. The price rebound led to a modest improvement in profitability.
4. Summary and Outlook
Looking ahead to next week, the East China acrylic acid market is expected to continue on a stable-to-weak trajectory. On the cost side, feedstock propylene is likely to consolidate within a range, offering limited support to acrylic acid. On the supply side, industry capacity utilization is expected to narrow slightly next week, with producers and holders adopting flexible pricing. On the demand side, downstream specialty ester and SAP producers will continue to digest contracts and inventories, with weak spot purchasing willingness. Only a few buyers may make need-based follow-up purchases at lower prices. Overall demand is expected to remain weak. In summary, despite some supply contraction, weak demand will dominate, and the acrylic acid market is likely to fluctuate with a downward bias next week.
The "11th Chempricehub MMA and Acrylate Industry Conference" is scheduled to take place from August 5-7 in Guilin! This conference will focus on downstream acrylate sectors, deeply covering core end-use industries such as superabsorbent polymers, specialty esters, tape master batches, and acrylic emulsions. It will bring together technical R&D elites, leading experts from research institutions, and representatives from industry-leading enterprises. The forum will closely align with the latest national policy directions, break through traditional industrial development constraints, and inject new momentum into the sustainable development of the acrylate and downstream industrial chain through innovative thinking. Attendees will engage in forward-looking discussions on industry pain points and opportunities, jointly charting a strategic blueprint for the industry's future. We look forward to meeting everyone at this industry grand event in Guilin this August!
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