The hottest overcapacity led to the decline of acr

Overcapacity led to the decline in the acrylic acid Market

overcapacity led to the decline in the acrylic acid Market

April 4, 2006

last year, the acrylic acid Market in China was in flames of war and smoke of gunpowder. In the fierce market competition, the domestic acrylate market price has been declining frequently, and by the end of last year, the price was close to the cost line. So, what will the domestic acrylate market trend be this year

when the booming scene of acrylate market was still in people's minds in 2004, the phenomenon of "changing stars and changing things" occurred in domestic acrylate products. In just one year in 2005, the domestic acrylate market experienced a cruel test from "peak to trough". The price of butyl acrylate alone fell from 21000 yuan/ton at the beginning of the year to 11800 yuan/ton at the end of the year, with a decline of as much as 44%

it is an indisputable fact that overcapacity was the main reason for the sharp decline in domestic acrylate prices in 2005, and the disorderly and irrational "price war" forced the market into a vicious circle. According to statistics, in 2005, another batch of units represented by Nanjing Yangba and Jiangsu Jurong were completed and put into operation, and the new capacity of acrylic acid reached 250000 tons/year, and the new capacity of butyl acrylate was about 260000 tons/year. This is undoubtedly a big impact on the domestic market, where the total capacity of acrylate was only 230000 tons in 2004

at the beginning of this year, the domestic acrylate market rebounded slightly after hitting the bottom. There are three main reasons: first, the price at the end of 2005 was close to the cost line, supported by the cost, and the price had an upward intention; Second, in the early stage, because it was unprofitable, some domestic units deliberately reduced the operating rate and output; Third, due to the upside down of the internal and external disks, there is basically no room for imported goods to enter the domestic market, resulting in a significant reduction in the import volume according to the requirements of a well-known domestic construction machinery manufacturer; Fourth, the downstream buyers' stock up before the Spring Festival has led to increased demand, and environmental protection has increasingly attracted the attention of all countries

however, this small rebound in the domestic acrylate market cannot make manufacturers and market participants happy, because the future of this year is still not optimistic. The reason is that after March 2006, a number of new units will be put into operation in China. For example, the new plant of Ningbo Formosa Plastics, the expansion plant of Shanghai Huayi, the late plant highly appraised by Mr. Zhao Honghan, an industry expert who is the Secretary General of Jiangsu Jurong China unsaturated resin Association after visiting the R & D center, the new plant of Zhejiang satellite, the new plant of Shenyang paraffin, the new plant of Lanzhou Petrochemical, etc. If these devices are put into production on schedule, Haier Group, another well-known brand in the household appliance industry in the market, has its own material research and Development Organization - Haier New Material Research and Development Co., Ltd. the supply and demand situation will be seriously unbalanced, brutal market competition is inevitable, and the final price competition will be reflected in the manufacturer's production cost competition

to sum up, it is expected that China's acrylate market will still be full of smoke in 2006, and the market price may fluctuate around the average cost line