Hamburg (Germany): In the last few weeks 2024, Meth Acrylic Acid prices in the German domestic market experienced a notable rise, primarily attributed to improvements in demand fundamentals. The business climate within Germany's chemical industry showed signs of improvement, with the business climate index surging to -6.0 points from -10.1 points in March. This positive shift in Meth Acrylic Acid prices was echoed in companies' assessments of their current business situations, as well as their brighter expectations for the coming weeks, indicating an overall enhancement in demand sentiment. Despite witnessing a slight uptick in demand from downstream industries, the figures still hinted at an overall underperformance within the chemical sector.

Meth Acrylic Acid supply, however, remained stable during this period, with purchases predominantly driven by immediate needs rather than speculative stocking. However, amidst this stability, German exports faced a slight setback, declining by 1.1% year-on-year in the first quarter. Nonetheless, Meth Acrylic Acid exports to China, Germany's largest supplier, managed a modest increase of 3.7%. However, concerns lingered over persistent structural issues and ongoing trade protection measures, casting shadows over the potential recovery in exports.

Meth Acrylic Acid market sentiment was largely bullish, underpinned by moderate supply and a noticeable uptick in the Flash Germany Manufacturing PMI, climbing to 42.5 in April from 41.9 in March. While new orders experienced a sharper decline, the deceleration in the rate of new export orders provided a glimmer of hope.

Despite marginal improvements in Meth Acrylic Acid demand from sectors like paints and coatings, the construction industry continued to lag behind the previous year’s performance. Procurement of Meth Acrylic Acid from other European nations remained subdued due to lackluster economic growth across many countries in the Eurozone, adding to the overall demand challenges. Weak demand of Meth Acrylic Acid and declining prices in paper markets compounded the situation, posing a common challenge for businesses reliant on these sectors. Similarly, the recovered fiber market faced familiar difficulties observed in 2023, with recyclers encountering low demand from mills and decreased collection rates.

Looking ahead, the forecast for Meth Acrylic Acid prices in Germany presents a mixed outlook. In May 2024, prices are projected to surge by 2.3%, driven by factors such as low availability of finished goods and heightened demand from the international market. However, June might witness a slight decline of 1.5% due to decrease in demand for Meth Acrylic Acid in regional markets and ample inventory availability. Nonetheless, July is anticipated to see a rebound, with prices poised to rise, bolstered by increased demand from downstream manufacturing firms in early Q3 and positive price and cost pressure arising from higher crude and Natural gas demand. Despite the challenges and fluctuations in prices, Meth Acrylic Acid prices in Germany hold promise for recovery. Supported by increased demand and positive market dynamics, the outlook remains cautiously optimistic, with expectations of gradual improvement in market conditions and pricing stability as the year progresses.