Hope on the Horizon: Anticipating Recovery in the Meth Acrylic Acid Prices in 2024

Texas (USA): The Meth Acrylic Acid market faced significant challenges on a global scale, particularly in the United States and European regions, as prices experienced a notable downturn amid imbalanced market fundamentals. This decline was driven by a combination of factors, including weak demand sentiments, surplus inventories, and a consistent rise in stocks. The sharp decrease was further exacerbated by the substantial fall in crude oil prices. However, as the industry bids farewell to 2023, early indicators suggest that a recovery may be on the horizon in the first quarter of 2024.

In the United States, the Meth Acrylic Acid market encountered a perfect storm of adverse conditions, with ample supplies, weak demand from downstream industries, and a notable decrease in crude oil prices during December 2023. The first half of Q1 2024 is anticipated to be characterized by continued dullness in end-use demand, especially from the construction sector. Limited improvements in consumption rates are expected, driven by a potential rise in cost support from upstream Acetone. Market participants are gearing up for increased activities and procurements in the coming months, with traders looking to restock inventories. After the conclusion of Q4 2023, Meth Acrylic Acid prices were assessed at USD 2020-2060 per MT, declining by 3% on monthly basis.

Similarly, the European Meth Acrylic Acid market mirrored the challenges experienced in the United States. The Meth Acrylic Acid (MAA) market is undergoing a delicate balancing act between supply and demand. Currently, the market is witnessing an abundance of Meth Acrylic Acid (MAA) due to stable production levels. However, the demand from downstream industries, particularly construction and automotive, has witnessed a downturn, leading to an excess supply in the market. Upstream Acetone prices also took a hit due to declining crude oil prices, affecting production costs. This decline in demand can be attributed to economic growth concerns and ongoing geopolitical tensions, causing a slowdown in sectors such as paint and coatings, adhesives, and textiles.

Despite the hurdles, the European market remains cautiously optimistic about the future. The supply outlook is moderate to high, with expectations of stable energy and feedstock prices. The demand scenario, however, remains challenging, with limited to no improvement projected in the early months of 2024. The Lunar New Year season in the Chinese market is expected to bring about a surge in demand, potentially putting pressure on prices. Additionally, energy prices are expected to strengthen, influencing the cost of production. Consumption rates in Europe are forecasted to strengthen with restocking activities, setting the stage for recovery in Q2 and Q3 2024.

As the global Meth Acrylic Acid market faced significant challenges in late 2023, marked by weakened demand, surplus inventories, and falling crude oil prices, industry analysts now anticipate a potential upturn in 2024. The advent of spring is poised to stimulate heightened activity in the construction and automotive sectors, driving demand for Meth Acrylic Acid in applications like paints, coatings, and adhesives. Furthermore, signs of recovery are emerging in both the United States and European markets, instilling cautious optimism for a turnaround in the first quarter. Market participants are gearing up for increased activities, foreseeing a gradual stabilization of costs that may foster resilience in the Meth Acrylic Acid market in the coming months.