Despite Demand and Supply Uncertainties, Global VAE RD Powder Prices Maintain Stability

In August, VAE Redispersible Powder (VAE RD Powder) prices remained stable across the global market, with no significant price changes observed in the US and Europe. Despite this stability, bearish demand from downstream industries, particularly the construction sector, persisted. In the US, the housing sector saw sluggish demand, while Europe struggled with economic slowdown, further impacting VAE RD Powder consumption. Furthermore, freight rates between Europe and the US eased due to weakening demand and increased shipping capacity, influencing the market trend.  Moreover, regional supply disturbances, such as port strikes, hurricane season, and port congestions, added complexity to the market dynamics. Also, low demand from Asian markets exacerbated the situation, contributing to an overall softening of global demand for VAE RD Powder. Nevertheless, a narrow gap between supply and demand prompted traders to maintain stable prices across the US and European regions this month.

The European VAE RD Powder market exhibited price stability in August 2024, with the Tg Harder General grade FD Hamburg (Germany) price holding steady at USD 1950/MT. Demand remained subdued, primarily due to the continued weakness in the downstream construction sector. The Eurozone's construction industry has been facing persistent challenges, with August marking another month of declining housing activity and worsening employment conditions, which negatively impacted VAE RD Powder demand.

Market players remain cautious about the prospects of recovery in the sector, further influencing the outlook for VAE RD Powder. Additionally, worsening congestion at major container ports in Northern Europe has led some carriers to skip port calls, disrupting supply chains. Meanwhile, Eurozone inflation eased to 2.2% in August, down from 2.6% in July, potentially affecting consumer sentiment and market dynamics. These combined factors have kept the European VAE RD Powder market in a state of uncertainty, with limited demand growth.

Similarly, in the USA, VAE RD Powder prices remained stable, reflecting eased costs for imported materials from Europe. However, demand from the regional construction sector remained subdued. The slowdown in inquiries can be attributed to the challenging lending environment for construction projects, continued weakness in commercial property values.  Additionally, market dynamics were influenced by a brief Canadian rail lockout that, although short-lived, led to diversions away from Vancouver and exacerbated congestion at Tacoma terminals. The potential threat of an ILA port worker strike in October at East Coast and Gulf ports further adds to the uncertainty, potentially impacting buyer purchasing activity.

According to ChemAnalyst, the price of VAE RD Powder is anticipated to maintain a stable trend in the coming months across both European and US markets. Price fluctuations are expected to be minimal due to the anticipated low demand and ongoing supply disturbances in the region.