Varying Demand Conditions Lead Fluctuations in 2-Ethylhexyl Acrylate Prices in April 2024

Hamburg, Germany: During April 2024, the global 2-Ethylhexyl Acrylate market experienced fluctuations in its price trend. Chinese and Singapore markets witnessed downward trends for 2-Ethylhexyl Acrylate due to the weak demand from the downstream sector including Construction, Paint and Coating. However, the US and German 2-Ethylhexyl Acrylate markets showcased an upward trend due to economic uncertainties which resulted in a hampered supply chain of the commodity.

In the APAC region, China, which is the major exporter of 2-Ethylhexyl Acrylate, experienced a decline in their trend due to the disturbed equilibrium between supply and demand. The demand for 2-Ethylhexyl Acrylate from the domestic as well as the overseas downstream sectors including Construction, Paint and Coating was weak and sufficient inventories were available. Furthermore, due to the Qing Ming festival in China from 4th April to 6th April, the market players stocked their inventories for the anticipated demand for 2-Ethylhexyl Acrylate, as the market was closed during that time. However, the demand for 2-Ethylhexyl Acrylate was weak in comparison to the existing supplies. Additionally, According to the latest data from the National Bureau of Statistics of China, there was a slightly sharper decline in employment, with the rate dropping to 48.0 compared to the previous 48.1. Despite this, delivery times were shortened, although at a slower pace, with the index measuring 50.4 as opposed to the previous 50.6.

However, at the same time, prices of 2-Ethylhexyl Acrylate showcased an incline of 1.8% and settled at USD 1771/MT (FD-Hamburg), during April 2024. The existing inventory levels were insufficient to meet the rising demand for 2-Ethylhexyl Acrylate and the supplies were delayed. Additionally, Germany's construction sector was bracing for its first nationwide strike since 2002 as employers have dismissed a proposed deal aimed at resolving a wage dispute affecting approximately 930,000 workers. This rejection comes at a challenging time for the industry, which is already grappling with escalating interest rates and costs. The sector had experienced a prolonged period of growth driven by low interest rates and robust demand, but the recent developments indicate a shift in this trend. Therefore, the ongoing dispute in Germany added up to the prices of 2-Ethylhexyl Acrylate as the demand was high but due to the strike, the construction sector was disturbed which resulted in the lower supplies in the market.

In April, Germany's economic performance showed a slight improvement, with GDP growth increasing by 0.2% quarterly. Despite this modest uptick, analysts maintained a cautious approach, pointing to persistent structural weaknesses that continue to hinder Germany's recovery prospects.

In the North American market, 2-Ethylhexyl Acrylate witnessed an incline of 1.75% in the US market along with the increase in the prices of the feedstock Acrylic Acid which resulted in the increased production cost of 2-Ethylhexyl Acrylate. Inventory levels were insufficient to keep pace with the increasing demand for 2-Ethylhexyl Acrylate from downstream sectors such as construction, including the paint and coatings industry. This shortage in inventory of 2-Ethylhexyl Acrylate underscores the challenges faced by suppliers in meeting the heightened demand from industries reliant on 2-Ethylhexyl Acrylate. Additionally, In April, the construction unemployment rate dropped to 5.2%, as reported by US Associated Builders and Contractors (ABC). However, the overall unemployment rate across all industries experienced a slight increase, rising from 3.8% in March to 3.9% last month. On a year-over-year basis, industry employment saw significant growth, with an increase of 258,000 jobs, marking a 3.2% rise, according to ABC's data. This indicates a positive trend in employment within the construction sector over the past year.

As per ChemAnalyst, the 2-Ethylhexyl Acrylate market is anticipated to follow an upward price trend in the upcoming weeks. Due to the expected increase in demand for 2-Ethylhexyl Acrylate from the downstream sector including Construction, Paint and Coating along with the economic uncertainties.