Acrylic Acid Market in China and France Remains Bearish Amid Weak Demand and Ample Supply
- 20-Mar-2025 3:45 PM
- Journalist: Nina Jiang
The acrylic acid market in China and France witnessed bearishness in its trend. The bearishness can be associated with the declined production cost, ample inventory levels, and the subdued performance of the downstream construction sectors.
Key Takeaways-
The acrylic Acid market in China continued to showcase bearishness amid the declining production cost and the focus of market players to fulfill the contract orders.
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The Chinese construction sector continues to struggle.
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The acrylic acid market in France remained stable at a lower end, reflecting bearishness.
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The construction sector of France faces a decline in its performance.
In China, the acrylic acid market is maintaining bearishness in its trend. During the second week of March 2025, the acrylic acid market witnessed a slight decline of 0.6% amid the declining production cost of the commodity along with the subdued performance of the downstream construction enterprises. The production cost of acrylic acid declined amid a decline of 0.56% in the feedstock Propylene market.
Furthermore, the market for acrylic acid is not strong amid the weak demand from the downstream construction sector in China. Therefore, due to the lack of new orders, the market players have shifted their focus towards selling their existing inventory levels and fulfilling the contract orders as the spot market prices are persistently low. Moreover, a new plant has started operating but the company has stopped operating the old plant, which could affect the supply of acrylic acid.
In terms of the downstream construction sector, the property market of China continued to face challenges in February due to the decline in home prices, investments, and sales despite the efforts of the government to boost the demand in this sector. New home prices have witnessed a slight decline of 0.1% in comparison to the previous month and 4.8% in comparison to the previous year. However, the market has witnessed a slight improvement from the 5% decline witnessed earlier. Moreover, the resale home prices have declined both month-on-month and year-on-year. Therefore, the government has introduced a few policies such as easing the restrictions on home-buying and promoting high-quality housing.
Similarly, the French acrylic acid market continued to maintain stability at a lower end reflecting the overall bearish market sentiments. The inventory levels of acrylic acid are present in ample amounts even though the trades from Asia to Europe have witnessed a slowdown. At present, the demand for acrylic acid is weak and the prices of the commodity were kept stable at at lower end by the suppliers. Many companies were witnessed sticking to their existing contracts which reduced the need for spot purchasing activities. Despite these factors, few market players are worried that the lack of imports could result in supply shortages if the demand for acrylic acid picks up later in the year.
In terms of the downstream sector, the construction sector of France witnessed a declining trend in February 2025 due to the sharp decline observed in commercial, residential, and civil engineering projects. Despite the slowdown in the price hike of construction materials, the industry continued to struggle with subdued demand amid the fewer new projects and hesitant clients.
As per ChemAnalyst, the acrylic acid market is anticipated to continue witnessing bearishness in its trend in China as well as in France. The anticipated bearishness can be related to the subdued performance of the downstream construction sector with no expectation of major recovery. This might continue to result in the bearish market sentiments of acrylic acid.