Analysis of Mixed Trends in Ethyl Acrylate Market: Impact of European Strikes and US Economic Challenges
Analysis of Mixed Trends in Ethyl Acrylate Market: Impact of European Strikes and US Economic Challenges

Analysis of Mixed Trends in Ethyl Acrylate Market: Impact of European Strikes and US Economic Challenges

  • 30-May-2024 2:38 PM
  • Journalist: Jung Hoon

Wiesbaden, Germany: The global Ethyl Acrylate market is experiencing fluctuations due to the disruption in the supply and demand equilibrium. In the American region except for the US, the Ethyl Acrylate market is maintaining its stability in its trend whereas the European nations are showcasing an incline in their trend as it is affected by the soft economic situation. 

In the European nations, the Ethyl Acrylate market is following an upward trend and shifting towards a bullish market scenario. In Germany, the Ethyl Acrylate market increased by 0.7% and reached USD 1655/MT (FD-Wiesbaden), during the week ending on 24th May 2024. The German construction market is affected by the strikes in the construction sector associated with the hike in wages which is impacting the Ethyl Acrylate market. Approximately 930,000 German construction workers are set to initiate their first nationwide strike since 2002 after a deal with employers fell through. This strike is expected to cause construction delays, resulting in economic harm. The timing is particularly unfortunate given the current economic challenges, especially in the housing construction sector. Germany's construction industry is already facing significant difficulties due to rapidly increasing interest rates and costs, which have halted a prolonged boom driven by low rates and high demand for new buildings. However, Germany's economy is gradually emerging from the crisis, making steady progress. The strike in the construction sector is also impacting the Ethyl Acrylate market, as demand from downstream industries, including paints and coatings, is being affected. This disruption is leading to a price increase for the commodity.  

The US market is following an incline in their trend of Ethyl Acrylate affected by the high inflation rate. Furthermore, the demand from the downstream construction sector including Paint and Coating was moderate, however, due to the increased inflation rates, the Ethyl Acrylate market is experiencing a price hike in their trend. In May, U.S. consumer confidence unexpectedly improved after three months of decline, spurred by optimism about the labor market. However, concerns about inflation persisted, and many households anticipated higher interest rates in the coming year. Even with the Federal Reserve implementing its highest policy rates in twenty years, the United States economy grew by approximately 2.5% last year, with low unemployment and stocks near all-time highs. This has led many observers to conclude that the economy has likely become less sensitive to interest rates and may require permanently high benchmark rates to prevent overheating.

However, the Mexican Ethyl Acrylate market is maintaining the stability in their trend along with the stable trend of the feedstock Acrylic Acid market resulting in the stable production cost of the commodity and hence contributing to the steady prices of Ethyl Acrylate. Furthermore, ample inventory levels of Ethyl Acrylate in the storage units are fulfilling the demand for Ethyl Acrylate from the downstream Paint and Coating sectors and hence the prices of the commodity are showcasing a stable trend. The spread between Acrylic Acid and Ethyl Acrylate was steady as the previous week indicating the stable market scenario of the commodity. 

According to ChemAnalyst, it is expected that Ethyl Acrylate prices will rise in the European and US regions in the coming week. In Europe, the construction sector is experiencing strikes over wage increases, while in the US, inflation is anticipated to contribute to an upward trend in prices for Ethyl Acrylate. These factors are likely to impact the pricing dynamics of Ethyl Acrylate in both regions.

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