Trucker Strike and Higher Production Cost Drives Ethyl Acrylate Prices in Germany
- 12-Apr-2023 2:33 PM
- Journalist: Patricia Jose Perez
Ethyl Acrylate market value elevated in Germany due to an eye-surging production cost of the Polymer & Resins sector of the domestic market in general, particularly in Europe, as concerns over forward demand rise against the backdrop of the ongoing trucker strike. With an increase in product shortage as truck drivers were on strike for three weeks in South Hesse with mounting concerns over an increasingly likely global recession weighing on the domestic market on high demand. This strike has limited the supply of Ethyl Acrylate and contributed to an increase in the product's price.
Germany remains one of the high-cost regions globally, weighing on export margins from the US which is a net exporter of Ethyl Acrylate in the global market. German export margins remain positive, prompting higher operating rates as per sourced by the traders. Hourly labor costs in Germany were increasing in the Acrylate manufacturing industries pressurizing the prices of the product.
The logistical condition of the German market was moderate, and although the freight charges in the European region were falling, this did not have much impact on the market value of Ethyl Acrylate. The supply of Acrylic Acid, the key feedstock for Ethyl Acrylate production, has risen at energy-intensive industrial branches by 1.9%, although it remained at subdued levels compared with the same month a year earlier.
Ethyl Acrylate prices climbed in the German market in April 2023, with pricing ranging from USD 2193/tonne FD Wiesbaden. The demand for Ethyl Acrylate has been strong in the construction and automotive industries, which are the key end-use market for the product, and has driven up the market value of the product. The sales generated by the Ethyl Acrylate manufacturing companies were high, and subsequently, their profits increased, too, as per sourced by the traders and the merchants.