Slackening Restrictions in China lifting Ethylene Acrylic Elastomer Market
- 06-Jun-2022 4:58 PM
- Journalist: Kim Chul Son
Qingdao, China: Chinese production activity slowdown in May as China's heavy-handed coronavirus curbs sustained to disrupt supply chains and stifle demand, adding to woes for some of the region's economies that are already under strain from escalating raw material costs.
As per the latest insight, the market for Ethylene Acrylic Elastomer witnessed an upward trend in the preceding week, backed by the shot-up in the upstream values. On the other side, increasing demand from the end-user sector has the other factor for the high pricing of Ethylene Acrylic Elastomer.
Additionally, Covid resurgence in China since late March has had an impact on traders, as China's major port hub Shanghai was lockdown. As a result, the purchasers have been spurred by the relaxation of the shutdown limitations and port congestion. Ethylene Acrylic Elastomer has seen a considerable increase in demand from the regional and international markets. Moreover, the easing of transportation constraints and the restart of the domestic market resulted in positive buying sentiments.
Furthermore, the upstream crude prices have been rebounding since the demand from China increased. Coupled with freight charges, the import prices of the crude met a massive uptrend, further wreaking the prices of Ethylene Acrylic Elastomer. As a result, the Ethylene Acrylic Elastomer prices surged approximately by 2% in the week ending 3rd June.
The use of Ethylene Acrylic Elastomer from the downstream automotive sector, notably automotive lubricants, increased due to the increased production of these products. However, the increased downstream production activities and high demand from end-user sectors prompted the Ethylene Acrylic Elastomer pricing. On the other side, the limited supply and high requirement of Ethylene Acrylic Elastomer also resulted in the ascending price movement of the commodity.
Furthermore, traders revealed that the supply chain is expected to tighten because the entire market will be shut down for the next three days amidst the Dragon boat festival.
According to the ChemAnalyst database, "The Ethylene Acrylic Elastomer prices might soar in the forthcoming weeks due to the tight supply chains. Additionally, the raw material prices, particularly Ethylene and Acrylic monomers, are likely to emerge, inflicting the Ethylene Acrylic Elastomer values. In addition, the limited availability of raw materials and increased demand from end-use sectors may push up the Ethylene Acrylic Elastomer pricing. Meanwhile, the effect of the restrictions on production and supply chains will still likely be felt for the month as a business struggle to restart, which further impacted the costs of Ethylene Acrylic Elastomer in the Chinese local market".