Weekly China Acrylic Market Update: Feedstock Costs Drive Upward Momentum

Market Overview and Butyl Acrylate Dynamics During the past week, the Chinese butyl acrylate (BA) market maintained a firm upward trajectory, primarily catalyzed by a significant escalation in production costs across the integrated supply chain. The average price for BA in East China climbed to approximately $978.41 per ton. While these gains originated within the raw material sector and effectively cascaded to downstream derivatives, the price adjustments for finished acrylate products remained relatively moderate in comparison to the aggressive volatility seen in upstream feedstocks.

On the supply side, the industry’s overall operating rate contracted as several major facilities in Ningbo, Penglai, and Pinghu implemented shutdowns or load reductions. This strategic decrease in output effectively mitigated inventory build-ups for leading producers. Despite a marginal cooling in downstream operating rates, market procurement sentiment remained resilient; buyers increasingly prioritized securing contract volumes to hedge against anticipated cost-driven price hikes in the near term.

Upstream Feedstock Performance The cost floor for the acrylic chain has strengthened substantially. The propylene market in Shandong registered sustained growth, with average prices reaching $858.12 per ton. This rally was underpinned by rising international crude oil benchmarks and elevated costs for alternative feedstocks. Supply remained constrained due to scheduled maintenance at multiple Propane Dehydrogenation (PDH) units and restricted regional inflows, empowering producers to maintain firm offers.

Concurrently, the n-butanol market trended higher, averaging $867.74 per ton . Although some capacity in the Northwest resumed operations, the supply recovery in the Shandong region fell short of market expectations. With downstream consumption holding at medium-to-high levels, the n-butanol sector maintained a "tight balance," facilitating a smooth transmission of costs through the butyl acrylate chain.

Downstream Derivatives and Emulsions Downstream manufacturers are currently navigating intensified margin compression. In the tape jumbo roll sector, prices rose to $1,109.61 per ton as producers reacted to the dual pressure of rising BOPP and butyl acrylate costs. While order volumes for tape products showed improvement, many manufacturers opted to maintain higher price floors to protect their narrowing margins.

In the acrylic emulsion market, pricing remained stable with a subtle upward bias, averaging $684.72 per ton. Although calculated production costs for styrene-acrylic and pure acrylic emulsions rose by approximately $13.34 and $9.55 per ton respectively, the full realization of these increases was partially checked by a divided demand landscape. While some users initiated winter stockpiling, others adhered to a conservative, hand-to-mouth procurement strategy.

Specialty Acrylate Esters Performance across other acrylate esters was fragmented, largely dictated by supply-side shifts. Methyl acrylate prices faced downward pressure, receding to $1,066.55 per ton as the entry of new production capacity forced major suppliers to adjust offers to facilitate inventory clearance.

Conversely, 2-ethylhexyl acrylate (2-EHA) demonstrated significant strength, rising to $1,250.29 per ton. This spike was triggered by reduced operating loads in Ningbo and a total plant shutdown in Pinghu, which severely tightened spot availability. Consequently, intermediaries with limited holdings have shown a strong inclination toward price resistance, tracking the broader market’s gains.

Market Outlook The short-term outlook for the Chinese butyl acrylate market remains bullish. Supply is expected to tighten further as scheduled maintenance commences in Taixing alongside continued output restrictions in Penglai. Robust support from upstream propylene and n-butanol is anticipated to persist, providing a solid foundation for acrylate pricing. While seasonal demand from the emulsion sector may experience a slight softening, the cumulative impact of reduced supply and elevated feedstock parity is expected to outweigh these fluctuations. As such, the market is likely to maintain an upward trajectory, with lower-priced spot goods expected to diminish as major producers continue to seek higher price levels.