EAA Copolymer Market Holds Firm in Asia as Feedstock Costs Stabilize
- 18-Mar-2025 5:30 PM
- Journalist: Philip Freneau
The Ethylene Acrylic Acid (EAA) copolymer market showed a steady price in Asia in the first half of March 2025, mainly due to restricted demand from the packaging and coating sectors in line with the minor fluctuations in upstream prices.
Since February 2025, EAA Copolymer prices have remained stable with a marginal increase of 0.5% because of a balance of supply and demand in the regional market. Continuous inquiries from Asian markets such as India and Indonesia bolstered the previous month's price trend. Furthermore, feedstock costs for ethylene and acrylic acid were stable from the previous month, relieving cost pressure on regional EAA copolymer traders.
In China, the EAA Copolymer prices are expected to remain stable during March 2025, due to the varied feedstock price fluctuations. The feedstock Acrylic Acid prices followed a southward direction in the first half of March 2025 due to low demand, weakened cost support from the regional market, and a pessimistic market situation. Meanwhile, the low Acrylic Acid prices may ease the production cost pressure in the EAA market.
In Asia, the uncertainty of the global economic situation and terminal market demand will continue to influence the EAA copolymer market trend. On the other hand, pressure on the supply side will persist, with capacity expansion and high inventory levels continuing to put pressure on the feedstock acrylic acid prices.
Downstream consumers in the region's EAA Copolymer sector have primarily made small purchases in the first half of March 2025, avoiding high-priced raw materials. In response, some businesses have extended discounts to encourage purchases.
The overall EAA Copolymer market trade environment in the export market has been flat, with sellers actively shipping products in the first half of March 2025. Furthermore, upstream crude oil prices impacted EAA Copolymer production costs, as worldwide crude oil futures finished lower, with the closing price of the major WTI crude oil in the United States at USD 71 per barrel, a 4.1% fall in February 2025. The settlement price of the major Brent crude oil was USD 75 per barrel, down 3.8%.
The moderate increase in downstream automotive production has stabilized the demand for EAA copolymers. As a result, the EAA copolymer market is expected to stabilize in the short term, with minor fluctuations in March 2025. However, if the decline in downstream production continues, the price of EAA copolymers is likely to fall from its current level in the future.
As per ChemAnalyst, EAA Copolymer prices are expected to stabilize as downstream players are likely to be cautious about weak downstream consumption and ample stocks. China's EAA Copolymer producers are reportedly emphasizing the need to increase their margins in response to slower demand growth, an abundant local supply of intermediate chemicals, and a moderate increase in the end-use market.