Sluggish Demand Leads to a Steep Fall in Acrylic Acid Prices in Asia

The global economic slowdown has been a critical concern for international key players, as the demand dynamics have come under this threat. As per the recent assessment, Acrylic Acid prices have declined in the Asian market, especially in China and India, during the mid of July 2022. The reason behind these price falls a low international market demand outlook.

The data shows that China has witnessed the steepest fall of around 14% during the second week of July 2022 and projects another steep fall of a similar magnitude. As per the market sources, demand fundamentals for the product have remained dull for the regional market for a long time, where the queries from the downstream acrylate manufacturers have subdued. Consequently, prices of these downstream derivatives have been falling for the past couple of months.

Similarly, In India, Acrylic Acid prices have also faced a fall of around 1% to 2% weekly this month, owing to sluggish demand from the domestic market and cheaper imports from major exporters like China. However, the recent price fall is very marginal in comparison with China, as the effect of this price might appear in the coming weeks or during the second half of this month.

A major downstream derivative, Butyl Acrylate, has been falling in the Indian and Chinese markets since June 2022, primarily driven by low demand from the regional market.

The global economic slowdown and domestic sluggishness have driven Acrylic Acid prices downward. Since China has rebounded from pandemic-related uncertainties, domestic economic activities are struggling to gain traction. Thus, demand dynamics for several commodities have tumbled effectively, resulting in this vast price fall.

According to the ChemAnalyst analysis, Acrylic Acid prices will likely remain dull until the end of this month in China, leading the prices to trace a similar trend in the Indian market.