Butyl Acrylate Prices Sutains Stability Amid Global Supply-Demand Equilibrium

Butyl Acrylate prices are witnessing a stable trend in the global market due to the maintained equilibrium between supply and demand. Furthermore, the prices of the feedstock Acrylic Acid market are witnessing a similar trend as the previous week, therefore, the production cost of Butyl Acrylate is sustained.

In the Brazilian market, Butyl Acrylate prices have held steady at USD 1650/MT (CFR-Santos) on 22nd March 2024. Despite moderate demand for Butyl Acrylate from the Paint and Coating industries for which the existing inventory levels are sufficient. Trade between China and Brazil for Butyl Acrylate remains consistent. However, the ongoing crisis in the Red Sea shipping route has led to container ships being rerouted through the longer Cape of Good Hope route in southern Africa. This redirection has resulted in a significant decrease in container tonnage passing through the Suez Canal, while vessel tonnage through the Cape of Good Hope has increased substantially. The extended journey and trade diversion have led to additional costs such as increased fuel expenses and losses for time-sensitive cargo. Moreover, heightened security concerns, including the risk of piracy, have contributed to a surge in insurance and legal claims. Despite this, the price of Butyl Acrylate is maintaining its stability due to the manageable demand from the downstream Paint and Coating sectors.

In the same manner, in Singapore, the Butyl Acrylate prices remain stable, showing no change from the previous week. This consistent pricing indicates a well-maintained equilibrium between supply and demand. In the Paint and Coating sector, demand for Butyl Acrylate is moderate, but this is efficiently met by utilizing available inventory stored in facilities. To ensure smooth operations in the supply chain, trade flows from Japan to Singapore are consistently upheld at a steady pace. However, on the upstream front, the ongoing rise in Crude Oil prices persists, leading to increased energy costs and overall production expenses.

Similarly, In the North American market, Butyl Acrylate prices have maintained their stability over recent weeks. This consistent pricing is attributed to ample inventory levels meeting the moderate demand from the downstream Paint and Coating sector. Market participants have refrained from making adjustments to their ex-quotation prices, indicating a cautious approach aimed at preserving the balance between supply and demand. In the upstream market, there has been an increase in Crude Oil prices, leading to higher energy costs associated with Butyl Acrylate production. Despite this, due to the moderate demand, buyers have opted for on-demand procurement rather than bulk purchases, driven by concerns about the potential oversupply of Butyl Acrylate.

ChemAnalyst predicts that Butyl Acrylate prices may rise in the coming week due to the expected rise in the demand from the downstream Paint and Coating enterprises which may raise the consumption rate of the commodity. Therefore, it is anticipated that the supply of Butyl Acrylate might decrease which may increase the trading activities among the significant manufacturing units.