Omicron Induced Panic Buying Across Asia, Shooting Up Regional Acrylic Acid Prices
- 30-Dec-2021 5:56 PM
- Journalist: Francis Stokes
Impacts of Omicron variant have made its presence felt where first instances of variant induced supply shortage are manifesting in key Asian Acrylic Acid market. Southeast Asia have been at the forefront where trading activities have been badly hampered due to increase in restrictions and complete shutdown of crucial ports.
Rising new cases of Omicron has induced speculations and uncertainty in the global market, where traders have already started procuring and replenishing their inventories for future availabilities in hope of better margins. As per ChemAnalyst sources, traders across Southeast Asia have started raising their offers under the fear of Omicron menace, which has been raising concerns over nascently recovered global trade activities. Consequently, further positive revisions in prices are expected for Acrylic Acid in forthcoming weeks across Asian market.
Resurgence in cases have blocked imports on major trading ports, while respective domestic demand maintained stability that led to the steep rise in price trend of several commodities. These scenarios have risen again and hovering around procurers’ head. Indian consumers highly depend upon imports for Acrylic Acid, as BPCL is the sole manufacturer for Acrylic Acid in India. Meanwhile, Indian procurers are expecting price revision by BPCL in near term for domestic market. Despite, Indian market is witnessing demand dullness since festive season ended, while traders heard negotiating on their existing inventories, sudden rebound in prices is anticipated by key players. Furthermore, global trade disturbance might also affect other countries like USA, turkey, China and Spain for imports.
As per ChemAnalyst analysis, ripple effect of Omicron on global market may induce momentary instability across global market and disturb Acrylic Acid pricing dynamics for a significant timeframe. However, pandemic related issues might also impact consumption of major economies including China and India across Asian market, which might act as a counter balance for rate of price escalation.