Divergent Trends in the 2-Ethylhexyl Acrylate Market: Stability in US Prices, Bearishness in Singapore

Texas (USA): The 2-Ethylhexyl Acrylate market has been experiencing contrasting trends across the APAC and North American regions. In the United States, the 2-Ethylhexyl Acrylate market remains stable as inventories are sufficient to meet consistent demand from downstream industries, particularly in Coating and Construction. Companies have restricted shipments to prevent potential losses, maintaining a balanced supply. Conversely, in Singapore, the 2-Ethylhexyl Acrylate market is facing a bearish trend due to a significant decline in demand from downstream sectors, leading to a surplus of the commodity and a downturn in market sentiment.

In the US market, 2-Ethylhexyl Acrylate sustained stability, priced at USD 1790/MT (FOB-Texas) during the week ending on July 5th. In June 2024, the Global US Manufacturing PMI was revised slightly lower, marking the highest reading in three months and indicating sector improvement. New orders rose for the second consecutive month, boosting production, albeit at a slower pace. However, input costs for 2-Ethylhexyl Acrylate remained stable due to unchanged prices of the feedstock 2-Ethylhexanol, linked to low export orders from the subdued construction industry in China. Despite new orders, the 2-Ethylhexyl Acrylate market maintained stability as inflation eased, and selling prices increased at the slowest pace of the year. Business confidence declined, and client demand remained muted, contributing to the market's stable trend. Additionally, global port congestion reached an 18-month high, leading to unfavorable export conditions from the US.

In the downstream Construction sector, demand for 2-Ethylhexyl Acrylate remains stable despite the sector's weak performance. According to recent data, in May, total construction starts rose, driven by increases in non-residential and non-building projects, while residential starts saw a slight decline. Year-to-date, total construction starts have experienced significant growth. However, US construction spending fell in May due to higher borrowing rates, which reduced family homebuilding. As a result, the market supply of 2-Ethylhexyl Acrylate remains adequate in the short term, leading to a muted recovery in demand from the downstream paints and coatings sectors. According to the Census Bureau, the downstream construction sector has seen a marginal decline. Given the market scenario, investors anticipate that the Federal Reserve may lower interest rates soon based on recent data trends, but rising freight costs could complicate the Fed's efforts to reduce inflation.

The Singapore 2-Ethylhexyl Acrylate market is witnessing a decline of 1.25% during the week ending on July 5th, reflecting bearish market sentiment. Terminal market consumption for 2-Ethylhexyl Acrylate remains average, with lackluster purchasing enthusiasm from downstream Coating and Construction enterprises. This weak demand for 2-Ethylhexyl Acrylate is compounded by declining production costs, driven by a downward trend in feedstock 2-Ethylhexanol prices as suppliers navigate an oversupplied market. High inventory levels have adequately met reduced demand from downstream sectors, further reinforcing the bearish trend. Consequently, the market continues to face downward pressure, with limited indications of immediate recovery in the near term.

According to ChemAnalyst, prices of 2-Ethylhexyl Acrylate in the US market may rise if the Federal Reserve decides to lower interest rates amidst improving buying sentiments. Such a move is expected to stimulate economic activity. Lower interest rates could lead to increased borrowing and investment in construction projects, thereby boosting demand for coatings and related materials. This heightened demand would likely absorb existing inventories of 2-Ethylhexyl Acrylate, leading to upward pressure on prices.