Acrylic Acid and Ester Market Analysis Weekly (12.3-12.7)

Ⅰ. This week's market overview

Acrylic acid, this week the domestic acrylic acid market shock finishing, the price rebounded slightly, as of This Friday, the domestic acrylic acid east China mainstream offer 8500-8600 yuan/ton. Acrylic acid price rise is the main impact of raw material propylene rose significantly, the cost of acrylic acid market support increased. Affected by the sentiment, downstream stocking operation warm warming, the market trading atmosphere is positive.

Butyl acrylate, this week the domestic butyl acrylate market price rose slightly, by this Friday, butyl acrylate east China market offer 9500-9700 yuan/ton. Raw material propylene low rebound, n-butanol first stable and then rose, within the week butyl acrylate manufacturers offer narrow range of expansion, downstream just need to buy, and there is a short-term stock behavior, orders increased significantly within the week.

Ⅱ. Supply side analysis

On the supply side, this week's domestic acrylic acid plant operating rate of 66.9 percent. This week, sanmu one oxidation stop, Ningbo Formosa Plastics and Shanghai Huayi plant will restart, Shengke one oxidation operation; The lanhua oxidation plant is planned to be shut down around December 15, and other manufacturers will operate normally.

Butylacrylate plant operating rate is 65.6%, Shanghai Huayi plant is expected to restart this weekend, butyl lanhua plant shut down.

Ⅲ. Raw material market analysis

This week, the price of propylene in the domestic market rose sharply. As of Friday, the price of propylene in Shandong market was 8250-8400 yuan/ton, and that in East China market was 8100 yuan/ton. Macro positive news continues to be released, the smooth shipment of refineries, driving the rapid price adjustment of propylene market. Demand side, PP powder shipment is good, the price of good propylene market. In addition, Sichuan Petrochemical, Jiangsu Huachang, Shandong Lanfan and other butanol plant restart, downstream demand is still good to take goods actively. Going into next week, the overall propylene market is well supplied and downstream demand is stable, but given the relatively strong buying this week, it is expected to slow down next week. Propylene market consolidation is expected to run next week.

The domestic n-butanol market rose broadly this week, and the price in east China market was 7,050 yuan/ton as of Friday. The wide increase in the price of raw material propylene drives the enthusiasm of downstream purchasing. The price of n-butanol is low in the early stage, and the downstream replenishment at bargain prices makes the market transaction atmosphere smooth. Entering next week, the supply side is expected to increase, while the downstream just needs to purchase. Considering the limited supporting role of the cost side, it is expected that the stable operation of n-butanol in China will be given priority to next week.

Ⅳ. Market forecast for Thursday and next week

On the supply side, next week acrylic acid and butyl ester manufacturers operating rate will continue to narrow range, the market spot supply is gradually increasing expectations.

On the demand side, because this week the downstream concentrated take goods, next week or continue to need replenishment, continue to drive the subsequent risk.

On the cost side, raw materials propylene and n-butanol cost support still exists.

To sum up, acrylic acid and ester price shock is expected to run next week, or put up the possibility.