Butyl Acrylate Market Remains Bearish in the US and Europe
- 29-Nov-2024 6:00 PM
- Journalist: Motoki Sasaki
Hamburg, Germany: The Butyl Acrylate markets in the US and Germany face bearish trends, with declining prices and weak market sentiment influenced by challenging economic conditions.
The European Butyl Acrylate market continues to face a declining trend, primarily driven by reduced demand stemming from ongoing challenges in the construction sector and declining production costs. During the week ending November 29th, the market stabilized at a lower level, with prices around USD 1330/MT (FD-Hamburg). Bearish trends in feedstock markets, including Acrylic Acid and n-butanol, have contributed to reduced production costs, exerting further downward pressure on Butyl Acrylate prices. The Eurozone construction industry remains under strain, with housing activity in October hitting record lows, significantly impacting demand for Butyl Acrylate. Additionally, domestic players are prioritizing year-end destocking to optimize inventory levels, exacerbating the demand slump. These combined factors underscore a challenging market environment as economic pressures and industry-specific obstacles weigh heavily on Butyl Acrylate trade dynamics in Europe.
Port operations face significant disruptions due to terminal congestion, full berthing lineups, and train arrivals restricted to 7 days before vessel ETA. Unofficial truck deliveries are limited to 48–72 hours before ETA, while labor shortages worsen delays. At CTB, berth capacity is reduced by ongoing shore power construction, forcing carriers to skip sailings. This has overwhelmed storage capacities as export volumes accumulate, further complicating port logistics and operational efficiency.
Despite logistical challenges, the Butyl Acrylate market maintains sufficient supply to meet subdued demand. However, weak economic indicators and sluggish industrial performance dampen market sentiment, preventing price recovery and sustaining a lackluster tone in the market.
The US Butyl Acrylate market continues to exhibit bearish trends, driven by declining production costs and weak demand from struggling downstream sectors like Coating and Construction. Although the U.S. construction sector showed mixed performance in October, with declines in commercial and institutional planning, it remains ahead of last year due to increased demand in segments such as hotels, education, and public sector projects. Despite this resilience, ample inventory levels of Butyl Acrylate and cautious market behavior have contributed to the downward price trend. Market participants remain wary of overstocking amid uncertain demand prospects, further suppressing the commodity's pricing momentum and maintaining a bearish market outlook.
As per ChemAnalyst, the Butyl Acrylate market in Europe and the US is anticipated to witness continuation in the bearish market sentiments for the upcoming few weeks amid the challenging downstream Coating and Construction enterprises.