US Butyl Acrylate Market Remains Bearish Amid Low Demand and Ample Supply
US Butyl Acrylate Market Remains Bearish Amid Low Demand and Ample Supply

US Butyl Acrylate Market Remains Bearish Amid Low Demand and Ample Supply

  • 01-Nov-2024 7:00 PM
  • Journalist: Sasha Fernandes

Texas, USA: The Butyl Acrylate market in the US continues to experience bearish sentiment, largely due to falling feedstock prices for n-butanol and acrylic acid, lowering the input cost for Butyl Acrylate. Additionally, reduced demand for Butyl Acrylate from downstream Coating and Construction industries is reinforcing this downward market trend of Butyl Acrylate.

In the week ending October 25, the US Butyl Acrylate market remained stable at a low of USD 1540/MT (DEL-Texas), reflecting a balanced supply-demand scenario. However, overall market sentiment for Butyl Acrylate remains bearish, driven by reduced production costs and weak demand from downstream Coating and Construction sectors. As a result, market players held their prices steady to avoid further dampening the market outlook for Butyl Acrylate.

The Dodge Momentum Index (DMI), released by Dodge Construction Network, dropped by 4.2% in September, reaching 208.6 from an adjusted August figure of 217.7. During this period, commercial planning declined by 7.8%, while institutional planning witnessed a 5.2% increase.

"Despite the decline this month, the Dodge Momentum Index remains at notably strong levels," stated Sarah Martin, Associate Director of Forecasting at Dodge Construction Network. "The recent rapid growth in the DMI was largely driven by a surge in data center activity, as planning in that sector slowed over the month, and commercial planning overall declined. By mid-2025, anticipated rate cuts from the Fed should accelerate the timeline for planning projects to reach groundbreaking, bolstering nonresidential activity as 2025 progresses."

Commercial planning generally softened over the month. After showing recent gains, warehouse, office, and store planning activities all slowed, while hotel planning has continued its steady expansion for five consecutive months, including in September. Data centers remained prominent in large project activity, though the pace of new planning projects moderated from recent, above-average growth levels. In the institutional sector, education, healthcare, and recreational projects led the month’s growth, with only religious planning seeing a decline. The DMI was 21% higher than in September 2023, with the commercial segment up 31% and the institutional segment up 4% year-over-year.

In September, 28 projects valued at $100 million or more entered the planning stage. Key commercial projects included the $390 million Project Nova Data Center in Eagan, Minnesota, and the SNA Data Center in Cedar Rapids, Iowa, with Phases 1 and 2 each valued at $375 million. Among institutional projects, the largest were the $300 million Kairos Power R&D facility and the $215 million Phase 2 of the Kentucky Exposition Center redevelopment in Louisville, Kentucky. The DMI, a monthly measure of nonresidential building project values entering planning, has been shown to forecast nonresidential construction spending a year in advance.

As per ChemAnalyst, the Butyl Acrylate market in the US is anticipated to remain bearish in the upcoming few weeks due to the availability of sufficient inventory levels of Butyl Acrylate in the US along with the low demand for Butyl Acrylate from the downstream sector.

Related News

Butyl Acrylate Market Remains Bearish in the US and Europe
  • 29-Nov-2024 6:00 PM
  • Journalist: Motoki Sasaki
US Butyl Acrylate Market Remains Bearish Amid Low Demand and Ample Supply
  • 01-Nov-2024 7:00 PM
  • Journalist: Sasha Fernandes
Arkema Secures ISCC PLUS Certification for Changshu Additives and Resin Production
  • 05-Oct-2024 2:30 AM
  • Journalist: Li Hua
US Butyl Acrylate Market Faces Decline Amid Construction Challenges
  • 20-Sep-2024 6:33 PM
  • Journalist: S. Jayavikraman