Divergent Trends in the Acrylic Acid Market in China and Germany

Qingdao, China: The Acrylic Acid market in China and Germany faces mixed trends, with declining prices driven by the challenging market sentiment. China is showcasing stability in its trend after witnessing a slight incline, whereas Germany is continuously showcasing a declining trend.

During the week ending November 22, the Acrylic Acid market in China remained stable, with prices hovering at the higher end at USD 890/MT (FOB-Qingdao), despite declining production costs attributed to the continuous decrease in feedstock Propylene prices. Stability in the market was supported by steady demand for Acrylic Acid from downstream Coating and Construction industries, which benefited from ongoing economic recovery and increased industrial production activities. As demand for Acrylic Acid in these sectors gradually grew, downstream players contributed to sustaining market equilibrium. However, rising prices prompted cautious purchasing behavior among some downstream companies, who opted for a wait-and-see approach and limited their procurement to immediate needs, avoiding large-scale stockpiling.

The European Acrylic Acid market continues to experience a declining trend, primarily driven by reduced demand and persistent challenges in the construction sector. The Eurozone's construction industry faces significant headwinds, with housing activity sharply dropping in October, reaching record lows. This has directly impacted Acrylic Acid demand. Additionally, domestic market players are focusing on year-end destocking activities to manage inventory levels, further contributing to the demand slump for Acrylic Acid.

Port operations have also been disrupted, with terminals experiencing heavy congestion, full berthing lineups, and restricted train arrivals limited to 7 days before the vessel's estimated time of arrival (ETA). Unofficially, truck deliveries are also being restricted to 48–72 hours before vessel ETA and labor shortages are compounding delays. At CTB, berth capacity is reduced due to ongoing shore power construction, forcing carriers to skip sailings, which has overwhelmed storage capacities as export volumes pile up.

Despite these logistical challenges, the market has managed to maintain adequate supply to meet the subdued demand. However, weak economic indicators and underwhelming industrial performance continue to suppress market sentiment, preventing any upward pressure on Acrylic Acid prices, and keeping the market tone lackluster.

According to ChemAnalyst, the Acrylic Acid market in China is likely to maintain stable market sentiment, as market participants are expected to take a cautious approach despite signs of recovery in the downstream Construction sector. Conversely, the European Acrylic Acid market is projected to continue its downward trend due to persistent challenges in the struggling downstream Construction industry.