Global Butyl Acrylate prices held steady with supply disruption and market challenges

During the week ending on 16th February 2024, the Butyl Acrylate is witnessing continued stability in its price trend since the demand from the downstream Paint and Coating enterprises is getting fulfilled with the existing inventories in the storage units, despite the reduced production rates of Butyl Acrylate.

In Brazil, Butyl Acrylate is maintaining its stability with the previous week at USD 1660/MT (CFR-Santos) on 16th February 2024. The Paint and Coating enterprises downstream experienced a moderate demand, but this is offset by sufficient existing inventory levels. Regarding trade between the Chinese and Brazilian markets, the flow of Butyl Acrylate is consistent. In China, the ongoing Lunar New Year in February 2024 is resulting in the market players increasing their inventory in anticipation of demand from the Paint and Coating sectors. Despite disruptions in the Red Sea caused by an attack from the Yemen-based Houthis, ships were redirected to the Cape of Good Hope, causing delays and higher freight charges, and also many traders exited the market early to celebrate their festive season due to which the rate of trading is reducing.  However, Butyl Acrylate prices remained stable, ensuring a balance between supply and demand.

The yearly Spring Festival, or Lunar New Year, which commenced on February 10 this year, traditionally results in a week-long shutdown in China. Additionally, the available inventories are ample to meet the increasing demand from the downstream Paint and Coating sectors.

Similarly, in the North American market, Butyl Acrylate prices have continued with their stability in the past weeks. The consistent pricing of the Butyl Acrylate was credited to the ample existing inventory levels meeting the moderate demand from the downstream Paint and Coating sector. Market players refrained from adjusting their ex-quotation, demonstrating a cautious approach to preserve the equilibrium between supply and demand. In the upstream market, there was an uptick in Crude Oil prices during the week, consequently elevating the energy costs associated with Butyl Acrylate. Despite this, given the moderate demand, buyers opted for on-demand procurement rather than bulk purchasing, driven by concerns about potential oversupplies of Butyl Acrylate.

In the Singapore market, Butyl Acrylate prices are also steady and unchanged from the previous week. This price stability reflects a harmonious balance between the supply and demand dynamics. The Paint and Coating sector, a significant downstream consumer, encountered moderate demand, which is adequately addressed by tapping into existing inventory reserves in storage facilities. To ensure an uninterrupted supply chain, trade inflows from the Japanese market to Singapore are consistently maintained at a constant rate. On the upstream side, the escalating prices of Crude Oil persisted and are contributing to higher energy costs and contributing to overall production expenses.

According to ChemAnalyst, it is anticipated that the prices of Butyl Acrylate may incline in the upcoming week with the end of the Lunar New Year in China, since, China is the major exporter of Acylates. Therefore, the expectation is that the prices might showcase elevation in its trend.