Polylactic Acid Market Likely to Remain Passive in Asian Market
- 04-Jul-2022 6:09 PM
- Journalist: Yage Kwon
Shanghai, China- At the starting of July, Polylactic Acid prices showcased episodic behaviour on the back of tumbling feedstock corn prices in the Asia-Pacific region. Grains such as corn, wheat, and soybeans are the primary feed elements required to produce Polylactic Acid in the regional market. These grains have been witnessing bull spreading as end consumers continue to pry supply from significant players of corn. These factors influenced the market dynamics of Polylactic Acid as only a slight inclination of 1% was witnessed in Asian Polylactic Acid market prices.
According to the agricultural ministry of China, the country has enough inventories to cater to the regional demand. The credit goes to the higher yield of feed by farmers and the relaxation of lockdown curbs. The grains began the week under weighty selling tension and kept seeing hefty strain until the end of the week. According to the USDA's reports (United States Department of Agriculture), selling was attached to weather conditions and position squaring in front of manufacturers toward the month's end. The pressure was likewise because of worries about the U.S. economy falling into a downturn. India and China have banned the consumption of single-use plastics to combat pollution levels; hence, the demand for the product elevated in the regional market. Another facet governing the market sentiments of Polylactic Acid is the demand from end-users. The rising concern about the environment and public health issues have proportionally impacted the prices of Polylactic Acid in the regional market.
As per the Central Weather Bureau (CWB) forecast, China and Taiwan may continue to receive strong winds and rainfall. These uninvited conditions alerted the manufacturers of Polylactic Acid pressurizing them to halt the production. The availability of stock with the downstream businesses has lowered the prices of Polylactic Acid in the regional market.
As per ChemAnalyst, Polylactic Acid's market dynamics will continue to depend on its feedstock, corn, wheat, and sugarcane prices and the demand from end-use businesses. Furthermore, the supply chain from the U.S. may get disrupted as the feed corn production has retarded, impacting the prices in the Asian market.