Hamburg, Germany- The supply chain situation in Germany suffer and the goods transportation fell by 4% towards the first week of June 2023 however the German factory orders per market quotations increased. Adjusted for the substantial price movements, the slowdown in the German supply chain situation had been a drag on Europe’s largest economy as elevated prices surged demand and consumers spent more on services.

According to traders, German manufacturing experienced an expansion in June 2023, while the production rates of Ethyl Acrylate in the regional market increased. To maintain the supply/demand equilibrium, German manufacturing activities increased in the region. Demand for Ethyl Acrylate, as it was not able to meet the rising downstream demand, led to a variation in production rates of the petrochemical-based product. The PMI price indices of Ethyl Acrylate manufacturing firms indicate an increase in profit margins. This suggests that the manufacturing firms were able to pass on the higher production costs to the market, resulting in improved profitability.

The demand for the raw material Acrylic Acid, used in the manufacturing of Ethyl Acrylate, experienced increased pressure in the regional market. The rise in demand for Acrylic Acid can be attributed to the higher production costs of Ethyl Acrylate. As a result, manufacturers of Ethyl Acrylate faced higher costs for raw materials. The price of Ethyl Acrylate rose in the German market at USD 1999/ton FD Wiesbaden during June 2023. Volatile financial markets, growing more acute supply chain and manufacturing supply chain disruptions in the regional market indicated a rise in the price of the polymer & resin-based product in the country. The applications of Ethyl Acrylate in the plastics, leather and paints and coatings industry impacted the market sentiments.

With an increase in consumption from the downstream market, the inventory level of the product with the traders depleted as per the market quotations. This also supported lowering stocks of raw material Acrylic Acid in the regional market as per the market quotations. The shipment situation in the German region was moderate enough to deal with the demand levels of the product as per the traders’ quotations. In the adhesives, coating, and plastics industry, the use of Ethyl Acrylate for the manufacturing of these products elevated impacting the market sentiments.

The supply chain situation in the German market is still not ideal, but there are some signs of improvement. The adhesive industry and its suppliers are reducing capacity, consolidating locations, and changing working practices, which is having an impact on the supply chain of the product. The procurement of the product elevated in the German market as per the trading data. The demand of Ethyl Acrylate also elevated from importing nations like Belgium, Spain, Italy, France and the Netherlands putting pressure on the market price.