Bearish Trends Persist in the Butyl Acrylate Market Across Europe and North America Amid Weak Demand
- 17-Feb-2025 4:30 PM
- Journalist: Harold Finch
The Butyl Acrylate market in Germany and the US has continued to showcase bearishness in its trend. This downturn can be attributed to weak demand from downstream coating and construction industries, coupled with the effects of the polar vortex and ongoing economic uncertainty.
In Germany, the Butyl Acrylate market remains stable at a lower level, indicating a bearish trend, during the week ending on February 14. This stability is primarily driven by unchanged production costs of Butyl Acrylate, as feedstock prices for n-butanol and acrylic acid have remained consistent. Additionally, weak demand for Butyl Acrylate from the downstream construction sector, characterized by limited new orders, has restricted any notable price fluctuations. While subdued demand has hindered sellers from increasing prices, widespread discounting has not been observed. Moreover, export sales continue to decline, mirroring Germany’s broader economic slowdown, with the government forecasting a 0.3% decrease in exports for 2025 due to reduced competitiveness and growing geopolitical uncertainties.
Given the market’s dependence on demand, spot activity is expected to remain sluggish until at least Q2 2025, signaling a slow start to the year. Despite a sufficient supply of Butyl Acrylate, distributors struggled to secure deals as buyers remained cautious. Germany’s economic recovery encountered fresh challenges, with the government downgrading growth projections amid rising trade tensions and political uncertainties. Additionally, the struggling construction sector further dampened Butyl Acrylate market sentiment, leading to workforce reductions and lower material purchases. Although the decline in buying activity has moderated, the overall bearish outlook persists, maintaining pressure on the Butyl Acrylate market.
Similarly, the US Butyl Acrylate market remains stable at a lower level, reflecting bearish sentiment. The lingering impact of the polar vortex has further constrained market activity, disrupting industrial operations and significantly reducing consumption in key downstream sectors like coatings and construction. Adverse weather conditions have slowed business activity, resulting in fewer new orders and reinforcing the subdued market outlook. Despite weak demand for Butyl Acrylate, prices have remained stable due to ample inventory levels, ensuring a balanced supply without major disruptions. To prevent oversupply and mitigate further downward pressure on Butyl Acrylate prices, producers have strategically adjusted their production rates, carefully managing supply flow.
Regarding the downstream construction sector, an analysis by Associated Builders and Contractors, based on data from the U.S. Bureau of Labor Statistics, reported a net gain of 4,000 construction jobs in January. Compared to the previous year, industry employment increased by 178,000 jobs, marking a 2.2% rise. Data from the US Census Bureau showed that construction spending in the US grew by approximately 0.5% in December 2025. Housing starts surged by 15.8% that month, reaching a seasonally adjusted annual rate of 1.50 million units. Throughout 2024, homebuilding activity expanded by 6.5% as developers worked to increase supply in a market challenged by affordability concerns driven by rising mortgage rates and construction costs. However, permit issuance declined by 0.7% in December to an annualized rate of 1.48 million units, reflecting a 3.1% drop compared to December 2023.
According to ChemAnalyst, the Butyl Acrylate market in Europe and North America is expected to remain bearish due to the continued sluggish demand from downstream coating and construction industries.