Acrylic Acid Prices are Elevating in the German Market with an Increase in Buying Sentiments
- 27-Sep-2022 8:50 AM
- Journalist: Francis Stokes
The demand for Acrylic Acid has been surging in the German region with an increase in the trading sentiments of the downstream Butyl Acrylate. Since natural gas prices in the EU are around fifteen times higher than before the crisis and significantly higher than those in Asia, European manufacturers are under much pressure to maintain their competitiveness against cheaper imports. Northeast Asian producers of PMDI and polyols have tried to sell more cargoes to Europe under unfavorable market conditions, some of which are anticipated to last, citing more significant margins and increasing buyer demand considering Europe's production problems.
These trade flows are being impacted by transportation problems like port delays in China, low Rhine River levels in Europe, and a rising US dollar. Market sources claim that if Germany's energy crisis persists, butyl acrylate exports could rise in the rest of Europe. Prices are not the only issue; other problems include the competitiveness of freight rates, product certification, fluctuating exchange rates, and the sustainability of solid demand in Europe.
The prices of Acrylic Acid are hovering in the German market during September at USD 2210/ton Acrylic Acid Contract FD Hamburg with a monthly escalation of 0.9% as recorded by Chem Analyst pricing team data. With the industry's continual expansion, the market is changing quickly. Technology development has given today's firms numerous benefits causing simple economic changes.
Energy-intensive industries have been impacted by the high energy prices, with a dramatic decline in production in the chemicals sector. Manufacturing of consumer goods has also declined, particularly for plastics and paints. Over the coming few months, it is anticipated that Germany's inflation rate will increase to double digits. Germany's inventories have gone from less than half full in September to 84% complete today because of the standoff with Russia, which has prompted nations like it to locate supplies abroad. Acrylic Acid Sales are witnessing a healthy boost with expanding application range; the polymer industry remains at the forefront of demand.