Soaring Input Cost Amid High Demand is Causing a Significant Surge in VAE Redispersible Polymer Prices in Global Market
- 13-Jan-2022 1:31 PM
- Journalist: Patricia Jose Perez
Despite varied performance of construction sector for different countries, VAE Redispersible powder prices have been witnessing an upward pressure since past few months. Manufacturers heard actively looking for cheaper raw materials, while most of the raw material was climbing up due to their high manufacturing cost. Furthermore, rising upstream cost remained a major factor behind global inflation coupled with sudden appearance of some unexpected events like natural gas shortage.
As per ChemAnalyst, during past few months, global players like Wackers Polymers were battling with high input cost, as soaring natural gas prices in Europe was squeezing their margins. Hence, to combat with this rapid surge in energy cost, manufacturers introduced temporary surcharge during November, which was eventually left an extra burden on consumers. Furthermore, not only high energy cost but high crude oil value also remained a key factor behind these frequent price revisions.
Talking about the global construction sector, European construction sector remained bullish during the last quarter of 2021, which is still showcasing an uptrend. In Asian market, Chinese construction sector slowed down after prolong bullishness, while Indian construction activities are ramped up after a long bearish monsoon season. Meanwhile, American construction activities displayed positive growth throughout the last quarter of 2021, especially in South America.
As per ChemAnalyst analysis, VAE Redispersible polymer prices are expected to continue its bullish run for further period in global market, as construction activities of most of the major economies are anticipated to work firmly in forthcoming months. Furthermore, freight prices are still hovering at significantly high rate which will take time to lose any noticeable value. However, rising concerns over resurgence in pandemic cases across the globe might reverse the dynamics of all positive possibilities.
