For the Quarter Ending June 2023
For the past twelve months, the overall index of Ethyl Acrylate saw a 4.0% decrease without taking into account seasonal adjustments. Among the contributors to the monthly decline in the index are the falling indices for shelter and vehicles. In May, the energy index dropped by 3.6%, as most components related to energy decreased. This came about as the economy faced rising inflation and increasing interest rates, resulting in subdued demand and weakening order books. Manufacturing firms continued hiring workers despite low backlog levels, leading to growing employment figures. Attempting to limit inventory growth, suppliers limited input acquisitions and concentrated on reducing stock levels instead. Cost pressures eased quickly too. Meanwhile, profit margins barely improved due to a lack of novelty in product pricing. Business optimism remained comparatively poor. Finally, during the same period, the core PPI and the goods PPI climbed 0.7 percent each, whereas the services PPI edged up 0.9 percent compared to April as per market trade data in Q2, 2023 at USD 1707/ton FOB USGC.
The prices of Ethyl Acrylate plunged in the Japanese market to USD 2020/ton CFR Tokyo during the second quarter of 2023. The inventory level of the product elevated with the traders in the regional market due to increasing consumption from the traders, as per data. Ethyl acrylate prices in the Japanese market have been on a steady decline since early March. The main factor driving this price hike is the tight supply situation caused by production issues at major Japanese suppliers. In addition, there are concerns about potential supply disruptions due to planned maintenance shutdowns scheduled for later this month. These developments have contributed to the bullish mood among market participants and sustained the upward momentum in Ethyl Acrylate prices. This fall in the prices was attributed to the declining demand and excess availability of the product in the market. The falling demand did not affect the manufacturing rates, leading to a rise in inventories. The end merchants were thus forced to sell their products at compromised rates which further aided the decline in the prices of Ethyl Acrylate as per market data. Recent surveys reveal moderately paced rises in new orders and dips in hiring employees for four consecutive months now. Despite remaining flat, exports witnessed another uptick in purchasing activities. Present production levels did not face major pressures, with slight increments noted in backlogged tasks. Raw material expenses took a plunge, registering the steepest decline since January 2016, attributable to variable raw material costs. Due to the strain created by market competition and sales promotion campaigns, sellers adjusted selling rates accordingly. Lastly, the level of market confidence recently reached an eight-month low as buyers expressed apprehension about unfavorable market circumstances.
Recent observations show that Ethyl Acrylate in Germany remains susceptible to changing oil prices due to certain essential features based on hydrocarbon commodities. Consequently, fluctuations in overall spending will exert some influence on market dynamics and provide relief measures. Perceiving current tendencies through this lens, financial gurus adjusted their evaluations of the procurement manager's index (PMI), slightly lowering its rating to 40.6 owing to waning customer orders originating from paint producers and finishing agents. Amid stable domestic transport activities in Germany, multiple influential aspects impinged upon the state of the country's fiscal domains, including converging conditions affecting the nation's economic policies and global trends impacting foreign interest from China. These factors contributed to easing inflation pressures stemming from prior policy actions undertaken on a macro scale, compelling fixed-income traders to adopt sunnier outlooks regarding their investments in bonds. During this era of adjustment, the Consumer Price Index rose to 116.8 points, causing oscillations in the overall market mood in the regional market during the second quarter of 2023 at USD 2009/ton FD Wiesbaden in Germany.
Global businesses of Ethyl Acrylate are facing a difficult period in Q2 of 2023 as new orders have declined for nine straight months due to weakening demand both domestically and internationally. Manufacturers are struggling to fulfill orders for intermediate goods due to reduced production volumes, resulting in further job losses. Despite this, firms have managed to reduce costs by taking advantage of lower raw material prices due to slowing commodity rates. To counteract deflationary pressure on their income statements, firms have also lowered their output quotes. Although market participants remain optimistic about the future, they faced another setback in April with a low PMI score of 46.6. Meanwhile, consumer inflation remains high at 6665.28 points, exceeding previous records for the year. Other regions like Latin America are not faring well either, but major auto parts suppliers like the US, China, Germany, and Russia are still active players in the market. However, concerns persist over inventory buildup and subpar demand from downstream customers, potentially hindering overall industry activity at USD 1735/ton CFR Santos.
For the Quarter Ending March 2023
The market prices of Ethyl Acrylate depleted in the Asian market during Q1 of 2023, with prices at USD 1945/ton FOB USGC. With rising market inventories and the participation of traders and suppliers, the fertilizer market in the USA de-escalated. Due to increased Sulphuric Acid stockpiles in the local market, the product's marginal demand fell in the area. Due to lower sales in the USA market region, the revenues from sulfuric acid were depleted. With the conflict between supply and demand, the situation in the downstream fertilizer market was dire, consumer interest in buying Sulphuric Acid was average, and the production trend was downward.
The prices of Ethyl Acrylate were de-escalated in the Asian market during the first quarter of 2023, with costs at USD 1516/ton FOB Shenzhen in January. There were enough inventories with the traders as a result of the Chinese market's declining demand for Acrylic Acid and an increase in the shipping of acrylates at the beginning of the month. In order to maintain market share, producers are continuing to produce at the same levels despite declining demand, which has increased finished goods inventories. The merchants attempted to lower the price of the goods in the area to keep a lower quotation due to rising market rivalry for Ethyl Acrylate. The rebalancing of supply and demand was what Ethyl Acrylate was looking for, and the decreasing trend was being handled with prudence.
Ethyl Acrylate prices depleted in the German market with costs at USD 2150/ton FD Wiesbaden during Q1 of 2023. Due to diminishing demand and unfavorable market sentiment, prices fell when feedstock (Ethyl Acrylate) changed on the local market. This fall in downstream product procurement elevated the stock of raw Acrylic Acid in the German market, as quoted by the traders in the region. Although it was still evident that Ethyl Acrylate was being purchased on the German market, the collapse of German industrial orders signaled a protracted period of industrial decline. European markets closed lower even as flash Purchasing Manager Index data showed a return to growth for the eurozone.
During the fourth quarter of 2022, the prices of Ethyl Acrylate plummeted in the North American market, with costs ranging at USD 2989/ton FOB USGC in December in the USA. The US straightened out supply chains amid months of inflationary snarls, and the traders reported an abundance of products in the regional market, although the consumption was less. Industries in the USA ran less efficiently, and inventories were sufficient with the traders and the suppliers. Recently, there has been a general fall in demand for Ethyl Acrylate in downstream industries like adhesives and sealants. However, falling feedstock costs also remained a major reason behind the significant price drop.
The demand for Ethyl Acrylate from the downstream paints and coatings industry was weak in the Asian market during Q4 of 2022 because of their sluggish performance, which caused the supply side to outstrip the available demand. The prices of Ethyl Acrylate were hovering at USD 1505/tonne Spot Ex-Shenzhen during November in China. Due to an improvement in the supply chain, enterprises in the local market made sales at reduced profit margins despite subdued consumer demand. Demand-related factors such as a decrease in the operating rate, a reduction in purchases, and a decrease in the profitability of downstream products all impacted the Ethyl Acrylate market.
The prices of Ethyl Acrylate decreased in the European market during the fourth quarter of 2022, with costs ranging at USD 2992/ton FD Wiesbaden in Germany during October, as recorded by ChemAnalyst Research team data. The procurement of Ethyl Acrylate in the German market was still evident, but the collapse of German orders showed a long slide in industrial activities. The supply chain to the German region was moderate to high, in addition to the rising stockpiling of products in the domestic market. The supply from the Asian region to the importing European countries increased with a lower consumption rate in Europe.