The Chinese acrylic acid market continued to showcase bearishness in its trend. However, last week it showcased a slight surge in the prices of the commodity amid the optimism created by the 90-day delay in the implementation of the trade tariff in China. However, the overall market sentiments of acrylic acid remained weak, driven by the presence of ample inventory levels due to the sluggish performance of the downstream coating and construction enterprises.
The acrylic acid market in China witnessed a slight surge of 0.6% in its trend during the week ending on August 22. However, the overall market sentiment remained bearish. Furthermore, the production costs of acrylic acid experienced a decline amid a decrease of 1.17% in the feedstock propylene prices. This slight surge in the prices of acrylic acid was experienced due to the relief observed due to the further extension of 90 days in the implementation of the trade tariff on China.
In China, some production facilities underwent maintenance shutdown in August, but the potential shortfall in supply was compensated for by an increase in production in the other companies. Therefore, the overall production rate in the industry remained 70-80% providing stability to the market sentiments of acrylic acid. Considering the current market sentiments, most of the companies adopted a sales-driven production strategy, and therefore, this resulted in minimal inventory accumulation.
In terms of the downstream sectors, the demand for acrylic acid from the downstream coating and construction sectors was relatively flat amid the absence of strong growth. This consistent weak demand for acrylic acid was driven by the slow recovery in the downstream infrastructure and real estate sectors. Market players continued to showcase cautiousness in the purchasing activities of the commodity in China.
Despite the ongoing sluggish market sentiments, the prices of acrylic acid experienced a minimal surge due to the optimism created by the further delay in the implementation of the trade tariff. On August 12, President Trump signed an executive order extending the tariff truce with China by another 90 days, moving the date to November 10, 2025. The decision halts a planned escalation of tariffs—now capped at 30% on Chinese imports and 10% on US goods—in an effort to prevent economic disruption during the critical holiday trade season.
If the tariff implementation was not extended, then the US duties on the Chinese goods could have experienced a tariff of up 145% while the Chinese retaliatory tariffs could have jumped to 125%. Therefore, this extension provided slight support to the current market sentiments of the commodity. This move came as US market players are stocking up their inventory levels for year-end sales, providing much-needed relief for supply chain planning.
Hence, despite the ongoing bearish market sentiments of acrylic acid, the prices of the commodity experienced a slight surge amid the extension of 90 days on the trade tariff implementation in China.
As per ChemAnalyst, the acrylic acid market in China is expected to remain range-bound in the upcoming few weeks amid the presence of both positive and negative drivers.
