Acrylic Acid market rebounds in South Asia

Acrylic acid price has been facing frequent hiccups in the global market for a long time under several market fundamentals that have been changing the overall market dynamics of the product. As per the ChemAnalyst analysis, the ongoing Russia Ukraine war has affected the global demand-supply chain for several commodities, including Acrylic Acid. Different regions have been performing differently, as the market fundamentals vary on various grounds.

Talking about Asia, China has been under lockdown restrictions since the mid of March, while the battle with another wave of the pandemic is still on. Being a major producer in Asia, China’s Acrylic Acid market tumbled effectively in March 2022, while other neighbouring nations started facing the threat of scarcity. As per the data, a considerable increment of more than 7% was observed during the first three weeks of March, which later kept on tumbling till the end of the month, as pandemic restrictions in the country were getting worse day by day. Meanwhile, India, which is a key importer of Acrylic Acid from China, witnessed a significant hike of around 2.5% in imported cargoes, while the pace of increase for domestically produced product’s prices remained marginally lower than the imported ones.

The ongoing Russia Ukraine war is also affecting the Asian market, as some of the major acrylates like Butyl Acrylate are heard to be imported from Russia via different trade routes to Asia, allegedly at a cheaper value. However, high crude oil value has not been letting the price decline for a longer period in the global market. High crude oil value and sudden escalation in natural gas costs have impacted the European and US market, putting inflationary pressure on domestic players and compelling them to keep on revising their offers to sustain profitability.

As per the ChemAnalyst data, prices are expected to take an uptrend in the US, Europe, and Asia during the forthcoming weeks. China has started showcasing consistent hikes day by day since April, while pandemic-related uncertainties are still hovering all around the region. Furthermore, Russia Ukraine conflict is also worsening day by day, vanishing all the hopes for term ease in prices of Natural gas Crude oil.