Asian Acrylic Acid Market Hit by Volatility Amid Supply/Demand Variances

Tokyo, Japan: The Acrylic Acid market is experiencing a volatility in the price trend in the Asian markets. In Japan, Acrylic Acid is following an upward price trend due to the increased demand from the downstream Paint and Coating sectors and also, due to the economical factors. Whereas in the Malaysian market, the prices of Acrylic Acid are maintaining stability in their trend due to the sustained equilibrium between supply and demand.

In the Japanese market, Acrylic Acid is showcased an inclining pattern of 1.10% and settled at USD 915/MT (FOB-Tokyo) on the week ending on 19th April 2024. After maintaining stability for the past few weeks, the prices of Acrylic Acid inclined due to the increase in the demand from the downstream Paint and Coating enterprises. Therefore, the increased demand led to an increase in the consumption rate of the existing inventory levels contributing to the price hike of Acrylic Acid. In terms of the feedstock market, the prices of Propylene are stable, with no major changes in the production cost of Acrylic Acid  Furthermore, as per Nada Choueiri, head of the International Monetary Fund's mission in Japan, the devaluation of the yen has contributed positively to Japan's overall economic expansion. Choueiri also mentioned that the IMF advocates for Japan to embrace a flexible stance regarding its exchange rates. However, the recent drop in the value of the Japanese yen to its lowest level against the dollar in 34 years, exceeding 154 yen, has prompted authorities to issue multiple cautions. They have expressed preparedness to intervene against speculative or disruptive activities in the currency market.

In the Malaysian market, Acrylic Acid is experiencing stability in its trend due to the efficient functioning of its supply chain. Current inventory levels of Acrylic Acid are deemed adequate to meet the moderate demand from domestic as well as overseas downstream sectors like Paint and Coating. Consequently, production rates and trading activities among major manufacturing units have been restrained to prevent excessive accumulation of Acrylic Acid, which could potentially lead to a downturn in market conditions. Moreover, buyers are favoring on-demand procurement of Acrylic Acid over bulk purchases. On the economic front, Malaysia's economy has accelerated, marking its most significant growth in a year. This suggests that the Southeast Asian nation is undergoing a more robust recovery.

As per ChemAnalyst, the Acrylic Acid market is expected to be inclining in the upcoming few weeks as the increase in demand from the downstream Paint and Coating sector is anticipated to be increasing. Therefore, the consumption rate might incline due to the increased demand which might result in the inadequate inventory levels of Acrylic Acid.