For the Quarter Ending June 2023
North America
The Ethylene Acrylic Acid Copolymer market in the USA has witnessed multiple fluctuations during Q2 2023. As per the data, Ethylene and Acrylic Acid market remained volatile throughout the quarter. However, three months of market dynamics show an overall downtrend in the market, owing to consistently falling feedstock Acrylic Acid prices amidst already low offtakes by downstream consumers. As per the data, demand for the product remained unchanged throughout the quarter from the packaging sector, despite the ongoing economic slowdown in the country. Furthermore, as per the FRED data, Producer Price Index (PPI) for plastic material and resin manufacturing fell from 344.745 (April 2023) to 339.641 (June 2023). At the same time, Consumer Price Index for Cities kept on rising throughout the quarter, rising from 302.918 (April 2023) to 303.841 (June 2023), showcasing that despite the ease in inflationary pressure, it was high enough to affect the consumers spending in the country. Therefore, under these circumstances, the US Ethylene Acrylic Acid Copolymer prices remained dull during Q2 2023.
APAC
The Asian market has witnessed multiple price revisions throughout the quarter, especially in China. As per the data, Ethylene Acrylic Acid Copolymer has showcased huge volatility throughout the quarter in the APAC region. In China, prices shot up during April by around 20% within a month due to the unexpected shortage of the material in the country, which further affected the prices of the product in other importing countries like Indonesia. As per the data released by NBS, China’s PMI fell marginally from 95.3 (April 2023) to 94.1 (May 2023). Nevertheless, industrial activities seem to be improving during June 2023. However, after this steep rise, Ethylene Acrylic Acid Copolymer prices started to ease down for the rest of the quarter in China, and the Indonesian market also followed the same trajectory. On the other side, the Indian market also faced a similar pricing trend despite the fact that low demand and only niche players were importing cargo at high prices, while industries were not performing well due to the arrival of the monsoon season.
Europe
The European market has been struggling with low demand and recessionary fear in the region for a long time. Ethylene Acrylic Acid Copolymer prices kept on falling throughout the second quarter of 2023 in the European market. As per the market sources, demand fundamentals for several commodities kept on falling throughout the quarter on the back of low offtakes from the consumers’ segment amidst declined consumers spendings due to inflationary pressure. The data shows feedstock Acrylic Acid prices have also declined effectively during this quarter affecting the prices of its downstream derivatives, including Ethylene Acrylic Acid Copolymer. On the other side, the economic momentum of the region has been slow, which can be detected by observing different economic indicators. The data released by Eurostat show that the Producer Price Index (PPI, Industry) of the region declined from 138.3 (April 2023) to 136.3 (May 2023), proving that under the influence of low demand, prices have been falling across the regional market.
For the Quarter Ending March 2023
North America
In North America, prices of several commodities fluctuated throughout the quarter under the influence of slow economic momentum amidst sudden hiccups in the country due to the banking crisis. As per the data, after witnessing a significant drop during the month of January 2023, prices of feedstock chemicals, including Ethylene and Acrylic acid, started rising in February. Further, while Ethylene sustained an uptrend, Acrylic Acid fluctuated during the second half of the quarter. Consequently, prices of Ethylene Acrylic Acid copolymer also oscillated parallelly, while demand fundamentals ended up on an optimistic note.
Asia
In the first scenario, the demand for Ethylene Acrylic Acid copolymer rose marginally in India due to stable demand from downstream industries, resulting in a bullish market situation. The supply remained stable, and imports from China remained cheaper. In the second scenario, the demand for the product in China rose unexpectedly due to the economic recovery of the country, resulting in a bullish market situation. The supply remained stable, and the domestic automotive sector experienced a rebound. In the third scenario, the demand for the product in India rose due to the seasonal surge, resulting in a bullish market situation. The supply remained moderate, and expensive imports played a key role in driving the price trend. In the fourth scenario, the prices in Indonesia remained subdued due to low demand from the downstream sector, resulting in a bearish market situation. The supply remained high, and the downstream industry witnessed subdued demand despite the anticipated seasonal surge.
Europe
The prolonged dullness in the European market due to the repercussions of the Russia-Ukraine war did not let the demand for several commodities rise in the region. As per the data, Q1 2023 remained dull for Ethylene Acrylic Acid Copolymer throughout the quarter owing to the rising threat of recession amidst plummeted US market. In terms of raw material, Ethylene and Acrylic Acid prices declined initially during January 2023 and rose again by the mid of the next month. However, by the end of the quarter, prices of both of the raw materials ended up on a pessimistic undertone, compelling prices of Ethylene Acrylic Acid Copolymer to fluctuate parallelly.
Amidst frequent changes in downstream demand from various sectors, Ethylene Acrylic Acid Copolymer's market value in the North American market displayed conflicting sentiments in the fourth quarter of 2022. The demand for Ethylene Acrylic Acid Copolymer (EAA) fluctuated along with the unequal growth of the flexible packaging industries. Upstream costs and variable production costs also influenced the development of the Ethylene Acrylic Acid Copolymer market. Hence, the price trend for Ethylene Acrylic Acid Copolymer declined in October, climbed in November, and then decreased once more in December. Destocking in December also played a role in the year-end fall in Ethylene Acrylic Acid Copolymer pricing.
The Asia-Pacific market witnessed a consistent rise in the Ethylene Acrylic Acid Copolymer (EAA) market value during the fourth quarter of 2022. As the downstream flexible packaging industry was performing well in the market, the demand for Ethylene Acrylic Acid Copolymer surged, which eventually led to its price hike. Additionally, inventories were limited, and the supply rate was low, which made the supply side weaker in comparison to demand and further supported the steady increment in Ethylene Acrylic Acid Copolymer during the quarter. Hence, In China, the assessed price of Ethylene Acrylic Acid Copolymer was USD 4236 EX-Qingdao, which was 20.2% more than the value in September.
In the fourth quarter of 2022, the market prices of Ethylene Acrylic Acid Copolymer in the European market often fluctuated due to fluctuations in downstream demand from various industries. The uneven growth of the flexible packaging industry fluctuated demand for Ethylene Acrylic Acid Copolymer. Upstream expenses and variable production costs also had an impact on the growth of the market for Ethylene Acrylic acid copolymers. As a result, the price trend for Ethylene Acrylic acid copolymer decreased in October, increased in November, and then decreased again in December. Destocking in December also contributed to the year-end decline in the price of Ethylene Acrylic acid copolymer.
