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Bearish Price Trend Witnesses in Global Ethyl Acrylate Market During November 2023
Bearish Price Trend Witnesses in Global Ethyl Acrylate Market During November 2023

Bearish Price Trend Witnesses in Global Ethyl Acrylate Market During November 2023

  • 07-Dec-2023 2:55 PM
  • Journalist: Emilia Jackson

Houston, USA- During November 2023, the price of Ethyl Acrylate witnessed a downward price correction in the global market. However, the prices of its feedstock, Acrylic Acid, experienced fluctuation in its trend. On the other hand, the demand for Ethyl Acrylate from the downstream Paints and Coating enterprises remains sluggish amid sufficient stocks. However, in Europe, Germany has showcased a slight incline in the price trend of Ethyl Acrylate along with its feedstock, Acrylic Acid. 

In the North American region, due to the lackluster demand from the downstream Paints and Coating markets, the producers chose to reduce their production rate as ample stocks were already accumulated among the storage units. Therefore, the USA showcased a declining price trend, which settled at USD 1680/MT (FOB-USGC) during Nov 2023. Similarly, in Mexico, the prices of Ethyl Acrylate moved South with slow market offtakes. This remains the primary reason for limits in the trading activities from the USA to Mexico to avoid the stockpiles of the commodity. In terms of the upstream market, the prices of Acrylic Acid increased in the American region, but since the demand from the domestic market was weak, the purchasing and trading activities were kept at a lower rate.

At the same time, the price trend of Ethyl Acrylate in the South American market mirrored that of the USA. Therefore, the traders decided to cut their trade from China and the USA to Brazil so that the existing inventories could be cleared out on a primary basis. There was a noticeable decrease in purchasing activities on the buyer's side as caution prevailed to prevent an overflow of Ethyl Acrylate amidst the bearish market conditions. Additionally, the low water level in the Panama Canal caused delays in transporting the Petrochemicals from the USA to Brazil, necessitating a longer route due to logistical challenges. However, for all the reasons mentioned above, the prices of Ethyl Acrylate declined due to low demand from the domestic market.

However, in Germany, the demand for Ethyl Acrylate from the downstream paints and coating enterprises slightly increased, which resulted in a slight inclination of 0.8%. Considering the market situation, the suppliers declined their offers and bids to improve their profit margins, and instead, they provided discounts on bulk purchases by the buyers. However, the purchasing activities from the buyer's end were restricted despite the tempting offers given by the suppliers. Since the demand was moderate, a sufficient amount of inventories was present in the storage units, resulting in a bearish market situation.

In the East Asian market, the prices of Ethyl Acrylate declined along with its upstream Acrylic Acid market, supporting the sluggishness in the price trend. In terms of spread, the difference between the Ethyl Acrylate and its feedstock, Acrylic Acid contracted, representing the bearishness of the Ethyl Acrylate market. Hence, due to the low demand and sufficient inventories, a few mandatory steps were taken, including reducing the production rate and attractive offers from the buyer.

As per ChemAnalyst, the prices of Ethyl Acrylate are anticipated to increase due to the upcoming festive season promoting fresh purchases. This may increase the trading activities from the supplier to the buyer's end. Furthermore, the low water levels in the Panama Canal could result in delays in shipping goods from the USA to Brazil, potentially causing shortages in storage facilities. This may disrupt the supply/ demand equilibrium in the American region. Anticipated rising demand for Paints and Coating in the local market may increase production rates, resulting in the price surge of Ethyl Acrylate.

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