Southeast Asian Acrylic Acid Market Witnesses an Bullish Trend Amid Supply Disruption

Klang, Malaysia- The price trend of Acrylic Acid is following an incline in its trajectory in the Southeast Asian market with the week ending on 15th Dec. However, the prices of its upstream Propylene market are experiencing stability in its trend with no major disruption in supply/demand. An increase in the demand from the downstream Paints and Coating enterprises and lower supplies are the two major factors resulting in the price hike of Acrylic Acid. Due to the disturbance in the equilibrium of supply and demand, the price trend of Acrylic Acid is facing an imbalance resulting in the higher price of the commodity.

In the Japanese market, the prices are showcasing an inclination in the trend of Acrylic Acid and reaching USD 930/MT (FOB-Tokyo) during 15th Dec. Since the demand from the downstream Paints and Coating sectors is increasing, the uptake of the existing inventories from the storage facilities are increasing resulting in the requirement to restock the storage with the commodities. The increasing demand for Acrylic Acid proved to be a beneficial opportunity for the traders as they were allowed to raise their ex-quotation and improve their profit margins and sales. Furthermore, the demand for Acrylic Acid from the Chinese market is also increasing, leading to brisk trade from the Japanese market to the Chinese market. However, the prices of the upstream Propylene market are stable from the previous week, therefore, the production cost for Acrylic Acid is maintained at a stable rate.

In Malaysia, the market for Acrylic Acid is improving even while the market for Propylene upstream is showing stability. The commodity's price has mostly shifted due to two factors: a shortage of Acrylic Acid and rising demand from downstream paint and coating businesses. In order to fulfil the increasing demand from the downstream paint and coating industries, the producers decided to increase the production rate of Acrylic Acid. In order to replenish the storage facilities and preserve a seamless supply/chain equilibrium, the buyers increased their purchase activity from the merchants.

According to ChemAnalyst, the prices of Acrylic Acid are expected to increase in the upcoming weeks. Due to arriving festive season, the demand from the downstream Paints and Coating markets may rise resulting in increased consumption of the inventories and depletion of the inventories at a higher rate. Ultimately, this may lead to the increased prices of Acrylic Acid, therefore, the trading activities from the Japanese and Malaysian markets are anticipated to increase. The traders might raise their quotations to increase their further profit margins and sales.