Acrylic acid market prices rise, Satellite Chemical's C3 integrated advantages demonstrate profit flexibility

Due to multiple factors, the domestic acrylic acid market has experienced a significant surge. Satellite Chemical (002648.SZ) latest quote on March 9 shows that the acrylic acid price in North China has risen to 13,100 yuan/ton, a sharp increase of 4,500 yuan/ton from the previous trading day, hitting a recent high. With its integrated full-industry chain layout and scale advantages in the C3 sector, Satellite Chemical has become a core target with profit resilience in this round of market rally, attracting continuous high market attention.

Since the beginning of this year, domestic propane prices have shown a distinct three-phase trend. In early January, mainstream factory gate prices in Shandong/East China remained high at 5,800–6,000 yuan/ton; after the Spring Festival, due to weakening demand and increased imports, prices retreated to a low of 4,600–4,800 yuan/ton in late February; in March, crude oil and LPG (liquefied petroleum gas) prices surged sharply, with key shipping routes obstructed, further pushing up logistics costs and supply expectations. Propane prices increased by about 2,000 yuan/ton over five days. As of March 10, the mainstream factory gate prices in Shandong/East China had risen to 6,800–7,200 yuan/ton, up over 43% from the year’s low and 17%–24% higher than at the start of the year.

Data from Business Society shows that the price increase was driven by a combination of cost push and sentiment boost. Geopolitical conflicts pushed up upstream raw material prices such as crude oil, propane, and propylene, creating strong rigid cost support. Downstream companies pre-stocked to ensure stable production, further tightening spot market circulation and amplifying price increases. As a leading domestic acrylic acid producer, Satellite Chemical’s latest quotes and the price difference with propane are particularly notable: the current acrylic acid-propane direct price spread is 6,100–6,300 yuan/ton. Even after deducting PDH processing fees and acrylic acid production costs, the gross profit per ton remains high at 3,600–3,800 yuan, with profit margins significantly better than industry averages.

As one of the top three global and the leading domestic producer of acrylic acid and esters, Satellite Chemical has built a rare large-scale production system worldwide, with total capacity reaching 2 million tons per year (second only to BASF). This includes 930,000 tons/year of acrylic acid, with 200,000 tons/year of new capacity under construction (second only to BASF and Arkema), and over 1.05 million tons/year of acrylic esters, making it the largest in China and second globally after BASF. Notably, the company’s butyl acrylate capacity is 780,000 tons/year, ranking first globally. More importantly, the company has established China’s leading “Propane–Propylene–Acrylic Acid & Esters–Polymer Emulsions/SAP” complete C3 industry chain loop. Relying on independently controlled global light hydrocarbon supply chains and core PDH (propane dehydrogenation) technology, it achieves self-sufficiency in propylene. Its integrated PDH route offers significant cost advantages over traditional naphtha-based routes, with strong cyclical resistance. The company owns core SAP (superabsorbent polymer) technology, with 150,000 tons/year of SAP capacity and an additional 300,000 tons/year under construction. It is a leading domestic producer and has partnered with several international diaper industry giants.

Furthermore, Satellite Chemical’s capacity layout and product structure continue to optimize, further strengthening profit resilience. In February 2026, the company announced a new 200,000-ton/year acrylic ester project focusing on high-value-added specialty acrylic esters, enhancing product matrix and extending the industry chain for better synergy. With its scale and global footprint, the company ranks among the top in acrylic acid and ester exports in China. Amid growing supply gaps in Europe, overseas revenue share continues to rise, providing additional support for the profitability of the C3 sector.

Industry insiders say that the current acrylic acid price increase, driven by sharp fluctuations in propane prices, thoroughly tests chemical companies’ supply chain coordination and cost control capabilities. Satellite Chemical, with its core advantage of full C3 industry chain integration, effectively transmits rising raw material costs during price hikes and fully releases profit potential when product prices rise. Its performance growth and cyclical resilience have been fully validated. As external influences persist, industry supply-demand dynamics improve, and the company’s high-end capacity continues to be deployed, Satellite Chemical’s C3 sector profit potential is expected to further unleash.