China and Germany's 2-Ethylhexyl Acrylate Market Faces Bearish Trends Amid Weak Demand and High Inventory
- 25-Feb-2025 5:30 PM
- Journalist: Patricia Jose Perez
The 2-Ethylhexyl Acrylate market in China and Germany is facing bearish sentiment due to falling production costs and sluggish demand from downstream coating and construction industries amid the presence of ample inventory levels.
The 2-Ethylhexyl Acrylate market in China experienced a 2.58% decline during the week ending February 21, driven by weakening production costs and subdued demand. While the feedstock Acrylic Acid maintained a stable price trend, 2-Ethylhexanol experienced a slight decline of 1.05%, contributing to the overall cost reduction. Additionally, the 2-Ethylhexyl Acrylate market faced a downturn in demand following the Spring Festival, as the post-holiday inventory replenishment phase came to an end. With downstream industries, particularly in coatings and construction, showing limited buying interest, the demand support needed to sustain prices weakened. As a result, bearish market sentiments prevailed, leading to further price corrections in the 2-Ethylhexyl Acrylate market.
The German 2-Ethylhexyl Acrylate market remained stable at a lower range, continuing to reflect bearish sentiment despite fluctuations in production costs. While the price of feedstock 2-Ethylhexanol rose by 2.75%, Acrylic Acid maintained a steady trend, leading to an overall increase in production costs. However, this cost surge failed to influence market dynamics due to persistently weak demand and sufficient inventory levels, which resulted in limited new orders of 2-Ethylhexyl Acrylate. With downstream industries showing sluggish purchasing activity and no significant recovery in 2-Ethylhexyl Acrylate demand, the market maintained its bearish outlook throughout the week.
With the market heavily dependent on demand, spot activity is expected to remain subdued at least until the second quarter of 2025, signaling a sluggish start to the year. Although the supply of 2-Ethylhexyl Acrylate remains sufficient, distributors have struggled to secure deals as buyers continue to exercise caution. Germany's economic recovery has faced renewed challenges, with the government revising growth forecasts downward due to rising trade tensions and political uncertainties. Additionally, the downturn in the construction sector has further dampened market sentiment, leading to workforce reductions and lower material purchases. While the decline in buying activity has shown some signs of stabilization, the overall bearish outlook persists, maintaining pressure on the 2-Ethylhexyl Acrylate market.
According to ChemAnalyst, the 2-Ethylhexyl Acrylate market in China is expected to experience moderate growth, influenced by weak real estate investment and a slowdown in manufacturing, which has led to stagnant revenue for engineering and construction firms. In contrast, the European 2-Ethylhexyl Acrylate market is likely to maintain its bearish trend, driven by sluggish market momentum in Germany.