For the Quarter Ending June 2023
The prices of Butyl Acrylate plunged in the North American market during the second quarter of 2023 at USD 1510/ton DEL Texas as per market team data in June. Despite consistent production costs in the region, the market price of Butyl Acrylate exhibited stability, remaining unchanged. The product's inventory level among traders remained constant, as indicated by market quotations. This can be attributed to reduced product consumption within the paints and coatings sector. In the region, the supply chain maintained a moderate status, ensuring that the inventory level remained unaffected among traders and suppliers. Furthermore, the market shipments of Butyl Acrylate proved to be ample, adequately meeting the demand arising from downstream market requirements as per market team data in the region. The market demand for paints and coatings displayed a bearish trend, resulting in a significant reduction in the procurement of the product from the Acrylate market. This decline in consumption subsequently caused the product's inventory level to rise, as reported by traders.
The prices of Butyl Acrylate plunged in a downward curve as per market team data at USD 1205/ton FOB Qingdao in China during June in the second quarter of 2023. The rate of new orders grew at a milder pace compared to last month, when employment witnessed its fourth consecutive drop. Although exports experienced no change in demand, purchases showed another increase. Production schedules face moderate stress with slight expansion in backlogged work. Raw material costs have fallen the most since January 2016, leading to minimal input prices. Changes in sales prices resulted from intensified market rivalry and sales promotion activities. Buyers expressed apprehension towards heightening market circumstances corresponding to an eight-month record low level of confidence. While the construction industry remains static, no significant alterations or growth surges have occurred in the latest week or the past year. As far as future predictions go, profits are anticipated to ascend annually by eighteen percent. Businesses involved in the construction industry have observed their earnings amplify by 8.9% yearly during the past trio of years. Simultaneously, total revenues garnered by said businesses escalated by 12%, higher than the customary industry commonplace of three percent. Resultantly, general sales augmentation leads to enhanced profitability projections for participating companies.
In April 2023, the market price of Butyl Acrylate fell significantly in the Belgian region to USD 2006/ton FD Antwerp during the second quarter of 2023. Production of Butyl Acrylate was reduced considerably compared to October of the previous year, while new orders declined sharply, marking an eight-month low. Additionally, prices of downstream finished products decreased rapidly over the past three years, leading to a negative shift in market sentiment. Last week, the construction sector experienced no growth. However, despite this short-term stagnation, the industry has performed relatively well in the long term, posting a notable 13% improvement in the previous 12 months. Analysts predict that the outlook for profit in Europe's building trade will remain stable, highlighting stability in the regional market according to trade data in the upcoming two years. The inventories of Butyl Acrylate elevated due to lower consumption as per trade data in the region and the market analysis, along with fluctuations of procurement in the country.
The prices of Butyl Acrylate plummeted in the Brazilian market to USD 1203/ton FOB Al Jubail as per market team data. New order volumes saw nine consecutive months of contraction due to persistently low local and international demand, as per respondents who cited a challenging operating climate as the cause. Subsequently, total industrial activity shrank further on account of a marked reduction in the output of intermediary items. During the same time frame, employment continued to decline owing to overcapacity within various production streams, as reported by responding establishments. Despite softening price levels and looser raw material supplies working against favorable market scenarios, producer price indices closed marginally below neutral territory, recording modest improvement following last quarter's reading. Survey responses revealed guarded optimism towards medium-term expansion plans, even though the present operating environment presents formidable challenges to manufacturers. According to recent reports, the PMI index for BAM in the Brazilian market dropped to 46.6 figures while the Consumer Price Index (CPI) appeared to be increasing to 6665.28 points. International trade statistics showed automobile demand driving exports from key nations, including China, the US, Germany, and Russia. Downstream markets experienced diminished appetite for the end product leading to a bulging stockpile situation that placed pressure on suppliers.
The prices of Butyl Acrylate elevated in the Middle Eastern market at USD 1100/ton FOB Al Jubail during the second quarter of 2023. Over the most recent week, the Construction Materials industry did not experience any significant fluctuations. Despite this relatively stable period, when considering the preceding twelve months, the industry underwent a decline of approximately eleven percent during that interval. In terms of projected earnings, analysts anticipate a double-digit contraction of roughly twenty percent within the Saudi Arabian market. Concerning feedstock Propylene, its utilization has noticeably decreased within the Middle Eastern marketplace. Parallel to this, trade sources have indicated that inventory holdings among merchants have risen steadily. The market price of Butyl Acrylate elevated in the Saudi Arabian market, with production costs rising, putting pressure on the Acrylate chain in the region. Saudi Arabia's PMI fell to 58.5 in May, above its long-run average of 56.9, as the rising market demand condition had pushed new order inflows to grow at its quickest pace.
The market value of Butyl Acrylate is depleted in the USA market with costs at USD 1976/ton DEL Texas. The country's central bank planned to boost interest rates to lessen the weight of inflationary pressure from local consumers, which had an impact on the region's economic activity at the start of the quarter. Demand dynamics were tipped towards a sharp decline and finally decreased by the middle of the quarter. Due to rising feedstock costs for ethanol and acrylic acid in the US market, the product's operational costs remained high. The downstream adhesives and sealants industry's demand for the product has recently decreased.
The prices of Butyl Acrylate were depleted in the Asian market during Q1,2023 with prices at USD 1463/ton FOB Qingdao. The fertilizer market in Asia moved in a negative see-saw fashion due to growing market stocks and the involvement of dealers and suppliers. The region's marginal demand for sulfuric acid decreased as local market inventories grew. The revenues from the feedstock, Acrylic Acid, were exhausted as a result of decreasing sales in the Asia market region. The downstream fertilizer industry is in a terrible situation due to a conflict between supply and demand. Consumer interest in Acrylic Acid is average, and the production trend has been declining.
The market value of Butyl Acrylate was de-escalated in the European market with prices at USD 2624/ton FD Antwerp. The Chinese market's dropping demand for Acrylic Acid and an increase in the shipment of acrylates at the beginning of the month resulted in sufficient stockpiles with the dealers. Despite weakening demand, firms are keeping up production levels to maintain market share, which has led to an increase in completed product inventories. Due to growing competition in the market for ethyl acetate, local retailers tried to maintain their prices of items lower. Ethyl Acrylate was seeking a rebalancing of supply and demand, and the declining trend was being handled prudently.