Stability Persisted in both the US and German Acrylic Acid market amid weak demand

Hamburg, Germany: The Acrylic Acid market in Germany and the US is experiencing a stable trend due to a maintained balance between supply and demand. In Germany, Acrylic Acid prices are stable but on the lower side, likely due to the ongoing summer holidays across Europe. Similarly, the US Acrylic Acid market is also showing stability, attributed to balanced inventory levels that align with the subdued demand from downstream sectors like coatings and construction.

In the German market, for the week ending on August 16^th, the Acrylic Acid market remained stable at USD 1280/MT (FD-Hamburg), despite rising feedstock Propylene prices. This stability in the Acrylic Acid market is attributed to the traditional summer holidays, which have led to reduced market activity. Additionally, the construction sector continues to struggle, with a decline in new orders. Challenges such as a lack of customer inquiries, fewer tender opportunities, and high construction costs have contributed to ongoing weakness. Furthermore, improved lead times for purchases and decreasing average prices for building materials signal a broader slowdown in the construction sector and its supply chain. These factors have resulted in an oversupplied Acrylic Acid market, prompting suppliers to lower their prices in response to weakened demand. Additionally, the spread between Acrylic Acid and Propylene, although stable this week, is narrowing, reflecting the stability of bearish market sentiments.

In addition, when an economy shrinks for two consecutive quarters, it is typically seen as being in a recession. European policymakers will be hoping that two consecutive quarters of growth are equally significant. Data released on August 14th revealed that the EU's economy grew by 0.3% in the second quarter of the year compared to the previous quarter. While modest by American standards, this growth is a welcome relief after over a year of stagnation.

Meanwhile, the Acrylic Acid market in the US remains stable due to steady demand from the downstream coatings and construction sectors. Although consumer confidence dipped slightly in July, the construction industry showed resilience, bolstered by increased private sector spending and ongoing public investment. As a result, market players adjusted their activities to align with the current market conditions of Acrylic Acid, ensuring a balance between supply and demand. Additionally, inquiries in both domestic and international Acrylic Acid markets have stagnated due to sufficient inventories held by consumers. The slowdown in the downstream construction sector led to reduced demand from construction-related industries. The sluggish pace of new home sales has increased new home inventory, and the overall deceleration in construction projects has caused a corresponding drop in demand for Acrylic Acid in downstream industries.

According to ChemAnalyst, the Acrylic Acid market is expected to decline in the coming weeks in both the US and European regions. This downturn in the Acrylic Acid market is attributed to ample inventory levels and the ongoing summer breaks in Europe, which could lead to a decrease in the commodity's prices.