Santos, Brazil: During the week ending on 19^th January 2024, the prices of Butyl Acrylate in the American market persist its stability due to the steady demand from the downstream Paint and Coating enterprises along with the sufficient amount of inventories existing among the storage facilities. The prices didn’t fluctuate much in the region despite the difficulties faced in the shipments of goods from the North American to the South American market due to the low water level in the Panama Canal. Nevertheless, Yemen-based Houthis attack on the Red Sea are still affecting the shipments of goods from the Chinese to the Brazilian market.

In the North American market, Butyl Acrylate is following a stable price trend in the US as well as the Mexican market. Furthermore, during this week, the prices of crude oil are showcasing an upward price trajectory, increasing the production cost for Butyl Acrylate. Due to the increase in the prices of crude oil, the cost of transportation for Petrochemicals within the region also elevated further exerting pressure on the profit margin of significant manufacturers . Despite this situation, the market price for Butyl Acrylate is the same in the North American market due to the moderate and manageable demand from the downstream Paint and Coating sector which is compensated by the existing inventory level of Butyl Acrylate.

At the same time, in the South American market, the prices of Butyl Acrylate are steady at USD 1650/MT (CFR-Santos) on the 19th of January 2024, due to the controllable demand for Butyl Acrylate from the downstream sector with sufficient inventory levels. Furthermore, due to concerns about potential assaults by the Houthis along the Suez Canal route, which serves as a crucial link between Asia and Western nations, shipping companies have been compelled to opt for a lengthier alternative path around the Cape of Good Hope, situated at the southern tip of Africa. A crucial maritime route via the Panama Canal, connecting the Atlantic and Pacific Oceans, is currently encountering obstruction caused by drought conditions. Insufficient rainfall has led to a significant decrease in the canal's water levels, reaching their lowest point in decades. As a result, Panama has been compelled to limit the number of ships permitted to traverse the canal. Opting for the Cape Horn route instead of the Panama Canal adds an extra 18 days to the travel time as well as more consumption of the transportation fuel for a vessel. The simultaneous disruptions in two vital trade routes have put over a third of global trade at risk, sparking concerns about the potential for increased inflation.

Despite the disruption in the shipments, the prices of Butyl Acrylate are remaining steady, therefore, considering the moderate and manageable market situation, the market players are keeping their ex-quotations intact to maintain the supply and demand equilibrium for Butyl Acrylate.

As per ChemAnalyst, the prices of Butyl Acrylate are anticipated to be increasing due to the expected demand from the downstream Paint and Coating enterprises. Since China is the major exporter of Butyl Acrylate, the prices may further rise due to the upcoming Lunar New Year in February 2024, this may increase the trading activities among the significant manufacturing units and also to the overseas market.