How Rising Upstream Cost is Pressuring Global Acrylate Market
- 29-Mar-2022 4:48 PM
- Journalist: Patricia Jose Perez
Global uncertainties are hovering around the global key players of acrylates, making them anxious about rising input costs amid inadequate queries from respective downstream sectors. Russia-Ukraine conflict acted as a mogul to inject cautiousness among these players, as it was certain that prices of global crude value were going to take a sharp upturn in the near term. As per ChemAnalyst assessment, the global Acrylate market is now facing intense cost pressure prompted by rising upstream crude oil value. However, the heat of soaring raw materials costs has been felt differently for different markets, depending upon their respective market fundamentals.
ChemAnalyst data shows a rise of around 8.6%, 0.8%, and 1.2% in the price of Butyl Acrylate, Ethyl Acrylate, and Methyl Methacrylate (MMA) in India during the February-March timeframe. Meanwhile, the European market showcased a marginal hike in the price of major Acrylates, including Butyl Acrylate and MMA. Talking about other markets like the Middle East, the producers there also witnessed a steep hike in the price of several raw materials, despite being a major exporter of crude oil, as rising crude oil value urged transporters to make frequent prices revisions, making imported commodities more costly.
Taking pressure from these recent price escalations in raw materials, global key players like Trinseo has announced a revision of around USD 600/MT for the global market, effective from 1st March 2022. However, European manufacturers are already under the threat of forthcoming scarcity in input cost, bolstered by the looming threat of import shortage from Russia.
As per the ChemAnalyst analysis, Acrylate prices are anticipated to remain buoyant as crude oil values are unlikely to show any steep decline in the near term. However, recent data shows that due to the lockdown in China to curb the infection rate of the pandemic, crude oil value has declined effectively for the global market, as China is the largest importer of crude oil in the world. Thus, any significant change in the current market scenario may change the overall dynamics for Acrylates in the global market.