Inflationary Pressure Pushing up the Prices of Acrylic Acid in the Global Market
- 28-Mar-2022 4:46 PM
- Journalist: Francis Stokes
Since January 2022, rising crude oil prices have had an impact on commodity prices all over the world. The global market has been sweltering as the price of crude oil has risen, initially as a result of the threat of escalation in the Russia-Ukraine conflict, which later became a reality. Since the war between Russia and Ukraine has worsened, global market scenarios are swiftly shifting, with some countries benefiting while the majority are attempting to safeguard consumers from inflationary pressure. Global inflation has become a matter of concern for the world, since it is driving up the costs of a variety of commodities despite weak demand in their local markets.
Despite modest to stable offtakes worldwide, increasing crude oil costs are also pushing up Acrylic Acid prices. According to the ChemAnalyst data, in March, Saudi Arabia, Japan, and the United States saw price increases of roughly 4.4%, 3.8%, and 0.46%, respectively, backed by growing upstream values amid sluggish domestic offtakes. These constant increases in the price of acrylic acid are influencing the downstream Acrylate industry, where a major downstream chemical, MMA (Methyl Methacrylate), is becoming more expensive in the international market as a result of large increase in the cost of the raw material Acrylic Acid.
According to ChemAnalyst, Acrylate fibres, a significant downstream sector for Acrylic Acid, are becoming more expensive week by week due to rising raw material costs. However, off-season offtakes from specialised consumers have decreased demand fundamentals for Acrylate fibres in the textile market. According to the latest insights, the Indian market remained extremely depressed, which pulled down the usual pricing trend for Acrylic Acid in the domestic market and saw a drop of more than 2%. According to market sources, Acrylic Acid demand in India was dull, with scheduled cargoes arriving on time, improving local availability.
As per the ChemAnalyst assessment, Acrylic Acid prices are expected to remain buoyant across the global market, as crude oil values are not going to showcase a steep decline anytime soon in the global market. The Russia-Ukraine conflict is only getting worse day by day, which is further deteriorating the overall global market sentiments.