Downstream Procurement Strengthens European Acrylic Acid Market
- 25-Jan-2023 3:45 PM
- Journalist: Jacob Kutchner
January 2023 has been observed as a peak consumption season for Acrylates; thus, the prices of Acrylic Acid showed a rebound after bottoming out, and the domestic economic growth has also risen in the European region. The performance from downstream demand is good, and the degree of prosperity of the Acrylic Acid market has risen in the German market. Rising input operating costs and feedstock Propylene prices pressured traders to keep pushing pricing dynamics. Pricing margins of Acrylic Acid were raised by the traders putting weight on the product prices in the German market.
Acrylic Acid's market value rose in the German market during January 2023, with prices ranging at USD 1875/tonne Contract Hamburg as per ChemAnalyst Research Team Data. High Crude Oil prices tend to drive up the overall price level of Acrylates in the region. In addition, overseas export orders increased, resulting in high-cost downward transmission. However, US Federal Reserve's sharp interest rate hike triggered a rise in commodities costs affecting the pricing sentiments.
Fading supply chain problems ease the downturn in the German Acrylates manufacturing sectors. The price of Brent Crude rose by 0.41%, as quoted by the traders, thus putting cost pressure on the Acrylic Acid market value. This uptick in German industrial orders was due to the rising utilization of the product in the downstream paints and coatings market. The delay in ship loading and unloading activities, although berth activity disruptions and minute labor scarcity, affected the trading sentiments.
Along with rising consumption, a lower inventory level is anticipated in the stock of the traders with the rise in freight charges as well, further overwhelming the costs of Acrylic Acid. Although there was a moderate shortage of products, even supply dynamics were seen to be sufficiently optimistic, keeping pace with the rising demand. Some traders started offering discounts on bulk purchases to downstream Acrylic Acid consumers.
