Acrylic Acid Prices Soar in the European and US Markets Amidst Rising Downstream Demand

Hamburg, Germany- In the global market, the prices of Acrylic Acid witness a bullish trend amid an uptick in purchasing activities and gradual consumption of inventories. However, the demand from the downstream ventures is strong, which provides an opportunity for the producers to raise their quotations along with higher production rates to meet the demand from the domestic market. The price trend of its derivatives and feedstocks, Propylene, is strong, leading to an increase in the operational cost, which provided cost support to the Acrylic Acid market. Furthermore, distributors are experiencing disruption in trading activities from the USA to Europe due to the drought in the Panama Canal, limiting the no. of cargo and causing port congestion.

In the USA, the price trend of Acrylic Acid elevated along with the cost support from its upstream Propylene market. Therefore, the trend of derivatives of Acrylic Acid surged as well. Due to the drought in the Panama Canal, traders are facing congestion in the port, disrupting the supply/demand equilibrium in the regional market. Therefore, a decision was made to limit the number of ships that could transport goods to avoid port congestion and delivery delays from the USA to Europe. Nevertheless, the demand for Acrylic Acid from the downstream Paints and Coating sector is constantly growing with high purchasing activities, and sellers are trying to recover the margin, increasing the price trend. In terms of the derivative market, the utilization of Acrylic Acid from Ethyl and Butyl Acrylate elevates and sets for further hikes in the European market.

In the European market, the elevation in the price trend of the upstream Propylene market is attributed to the trade of their existing inventory at firmer levels, with engaging in fresh stocks at elevated rates. The increased price trend remains due to several factors, for instance, disruption in trading activities, inadequate inventories in the storage units, or increased prices of its upstream market. Despite the tepid demand from the downstream Paints and Coating sector, the surge in the prices of Acrylic Acid can be seen due to the high expenses of its upstream Propylene market. Furthermore, due to the increase in fuel surcharge prices, the transportation cost also elevates, adding up to the cost of the product.

According to ChemAnalyst, the prices of Acrylic Acid are anticipated to showcase a bullish price trend in the upcoming weeks, along with the cost support from the upstream Propylene market, which may cause an increase in the production cost of Acrylic Acid. Additionally, due to the decreased water level in the Panama Canal, the transportation of supplies from the USA to Europe may be delayed, leading to insufficient stocks in the storage units. Nevertheless, an increase in fuel prices is anticipated, which may increase the transportation cost of Acrylic Acid.