Shenzhen, China: The Ethyl Acrylate market across Europe and Asia is exhibiting a bearish trend due to reduced demand from downstream sectors like Coating and Construction. These key sectors have encountered obstacles such as sluggish activity and delayed project rollouts. This muted demand, along with lower input costs, has led to oversupply conditions in the market, applying downward pressure on Ethyl Acrylate prices and maintaining the bearish sentiment.

In China, the Ethyl Acrylate market remained stable yet sluggish, with prices at a low of USD 1250/MT (FOB-Shenzhen) by the end of October 25th. Market participants had anticipated a potential recovery in demand following the post-Golden Week holiday, but expectations were unmet as terminal demand continued to weaken, accompanied by a slowdown in trading activity. To revitalize the struggling Coating and Construction sectors, and address the broader property market downturn, China is preparing to channel substantial funding into housing projects, with a "white list" allocation of up to 4 trillion yuan ($562 billion). This initiative is part of a broader economic stimulus plan aimed at boosting housing market stability and economic growth. Additionally, Ni Hong, Minister of Housing and Urban-Rural Development, announced supplementary plans to redevelop 1 million urban villages, although the specific funding allocation for these projects remains undisclosed. Despite these measures to stimulate the downstream sectors, demand for Ethyl Acrylate has not yet shown signs of substantial recovery, leaving the market in a bearish stance. On the feedstock side, while acrylic acid prices have exhibited some upward movement, ethanol prices continue to show a bearish trend, further influencing Ethyl Acrylate market dynamics.

In Germany, the Ethyl Acrylate market continues to trend downward, primarily driven by reduced demand from the underperforming downstream Coating and Construction sectors. Market participants are cautiously navigating this environment to avoid further Ethyl Acrylate price declines across Europe. While the construction sector in Europe holds considerable economic weight, its progress has been hampered by the slow adoption of innovation and a fragmented landscape among various project stakeholders. With leading construction companies operating on slim profit margins of roughly 5%, there is limited capacity for experimenting with new technologies. Nonetheless, construction startups are actively pursuing modernization within the sector, as reflected by €390 million invested across 62 construction tech deals by mid-October, illustrating persistent efforts toward innovation despite ongoing challenges. Adding to the bearish outlook, production costs for Ethyl Acrylate have fallen, driven by declining feedstock prices, particularly for Ethanol and Acrylic Acid, which further contributes to softening market sentiment.

ChemAnalyst forecasts that the Ethyl Acrylate market in Asia will likely continue its bearish trend, mainly due to low demand from the Coating and Construction sectors and reduced production costs stemming from cheaper feedstocks like Ethanol and acrylic acid. In Europe, particularly in Germany, the market is expected to hold steady as cautious players aim to prevent additional price drops of Ethyl Acrylate amid weak demand from the fragmented construction sector. Although investments in construction technology are growing, their immediate effect on Ethyl Acrylate demand may be limited, resulting in a moderately stable outlook for the European market in the near to medium term.