Introduction: Since the start of August, the domestic acrylic acid market has fallen into a pattern of rangebound consolidation amid a confluence of multiple factors. Cost support has emerged from propylene rebounding after an earlier decline, but the increased operating rates at Wanhua's unit have added pressure on the supply side. Downstream specialty ester and SAP plants have primarily been consuming contracted volumes and existing inventories, with spot purchasing momentum remaining weak. As of now, the mainstream spot quoted range in East China holds at RMB 7,000–7,100/mt, but this represents a decline of RMB 150/mt from last week, a week-on-week drop of 2.08%.
This week, the propylene market showed a trend of declining first and then rebounding. On the supply side, the catalytic unit at Wanda Tianhong was shut down, and its 450,000 mt/year PDH unit entered maintenance around August 5. Liaoning Jinfang's 600,000 mt/year PDH unit also has maintenance plans, which provided a positive factor from supply contraction. Following earlier price declines, downstream margins saw some recovery, demand from rigid needs was released in the Shandong region, plant shipments improved, and the tight supply-demand pattern supported spot prices moving higher. However, with geopolitical de-escalation expectations reducing concerns over risks in the Strait of Hormuz, international crude oil prices fell sharply, which to some extent dampened market sentiment, keeping propylene gains cautious. As of August 6, the mainstream propylene transaction price in Shandong was RMB 8,115/mt, up 1.37% week-on-week; the mainstream transaction price in East China was RMB 8,500/mt, up 3.34% week-on-week.
During the week, Yantai Wanhua's acrylic acid unit raised its operating rate, lifting the industry's capacity utilization rate accordingly. According to Chempricehub statistics, during this period (July 31 to August 6), the acrylic acid capacity utilization rate reached 71%, up 1.43 percentage points from the previous period. The restart of some units that had previously been under maintenance further increased spot supply in the market. Against the backdrop of loosening supply, acrylic acid plants and holders offered flexibly, with more room for negotiation on firm transactions. However, the market atmosphere remained cautious, and offering enthusiasm was subdued. The mainstream spot quoted range in East China holds at RMB 7,000–7,100/mt, but this has fallen RMB 150/mt from last week, a week-on-week decline of 2.08%.
Demand-side performance was likewise weak. The major downstream specialty ester and SAP plants hold relatively ample feedstock inventories and are primarily consuming existing contracts and earlier stockpiles, showing a low willingness to purchase spot material. Looking at operating data, the SAP resin capacity utilization rate held at 57.70%, while the water treatment sector's capacity utilization rate edged down to 53.77%. Most downstream enterprises only made small replenishment purchases to fill rigid-need gaps, and overall buying interest was limited. Transactions were mostly concluded through firm negotiation, with limited volumes, doing little to effectively support acrylic acid prices.
Looking ahead to next week, the East China acrylic acid market is expected to maintain a rangebound consolidation trend. On the feedstock side, the propylene market is likely to continue trading within a range, offering limited support to the cost side. Under these circumstances, acrylic acid plants and holders will mostly quote in line with market movements. On the demand side, affected by the traditional off-season, downstream specialty ester and SAP enterprises are mainly consuming existing inventories, with weak purchasing intentions and only maintaining inquiry activity for rigid needs. Overall, acrylic acid prices are likely to continue their consolidative run next week.
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