China's Acrylic Acid Price Continues To Decline in August 2022
- 08-Aug-2022 4:07 PM
- Journalist: Xiang Hong
China's Acrylate market has been down for the past several months, as the domestic market dynamics have been altered by pandemic-related restrictions owing to the country's controversial zero covid policy and logistical constraints in the past few months. As per the analysis, Acrylic Acid prices have continued their downward slide during the first week of August, hampered by dropping demand from the domestic downstream Acrylate segment.
The data analysis shows a decline of around 6-8 per cent varied with different locations in the country. A trusted market source revealed that the demand for Acrylic Acid in China has not rebounded despite some recovery from the pandemic; the country is still struggling to gain traction over its economic momentum. China's economic recovery is reeling under pressure as the influence of inflationary pressure market movement has slowed down in the downstream industries.
China's building and construction industry has been the backbone of the country's economy, whose performance has plummeted in the past few quarters. Consequently, demand fundamentals for Acrylic Acid have declined from the downstream Acrylate segment, which's integral for the industry.
On the back of the Acrylic Acid downtrend, the downstream derivative price has also changed, and a significant fall in the Butyl Acrylate and Ethyl Acrylate prices has also been observed in the overall Asian market.
Furthermore, the visit of US Speaker Nancy Pelosi to Taiwan has again put China and the US in the cross hairs as the APAC region holds its nerve while the US-China relationship deteriorates to a multi-decade low. China has ensured swift action and made a bold move by sanctioning Nancy Pelosi. Apart from all these disturbances, rising geopolitical issues have also become a major concern for domestic key players, as they have become uncertain about the future dynamics of the domestic as well as international market.
As per ChemAnalyst, "Acrylic Acid prices are expected to remain lacklustre in forthcoming months as the demand from the domestic and international market is not going to improve anytime soon."