Moderate Supply and Increasing Inventories De-escalating the Prices of 2-Ethylhexyl Acrylate
- 20-Mar-2023 5:52 PM
- Journalist: Nicholas Seifield
There are weak buying sentiments of 2-Ethylhexyl Acrylate and low demand from downstream markets for paints, adhesives, and coatings in the regional Chinese market. The fluctuating electricity costs of 2-Ethylhexyl Acrylate and labor charges relieved price pressure from the product. Thus, paints manufacturing companies are generating fewer sales, leading to the loss of industries involved in the manufacturing of the product.
The market value of 2-Ethylhexyl Acrylate plummeted in the Chinese market, with prices ranging at USD 1482/ton FOB Qingdao as per ChemAnalyst Research Team Data during the third week of March 2023. The freight charges were falling in the region as quoted by the merchants to the European and American countries. Meanwhile, Jiangsu Azure, the logistics-based company, underperformed within the regional market, shrinking by 7.7%. The production costs of 2-Ethylhexyl Acrylate decreased due to improved technology of product manufacturing in the Chinese region, and the suppliers were able to lower the prices of the product and still maintain their profit margins.
Investors are pessimistic in the Chinese logistics industry that the growth of 2-Ethylhexyl Acrylate will be lower compared to that historically. The supply chain situation to and from the market was observed to be moderate, keeping a high product inventory with the merchants of the finished products. Acrylate prices decreased as a result of an increase in the supply of 2-Ethylhexyl Acrylate, increased production, and new suppliers entering the market.
A decrease in demand for 2-Ethylhexyl Acrylate due to slight changes in the production rate and operating rates of the product in the market caused the prices to go down as suppliers tried to attract buyers. The procurement of 2-Ethylhexyl Acrylate for the manufacturing of downstream paints and adhesives depleted due to plunging consumption from the construction and other sectors which use these products impacted the buying sentiments.