Supply-Demand Disruption Causes the Global Butyl Acrylate Market to Fluctuate

New York, USA- In the global market, the prices of Butyl Acrylate oscillate as per the downstream demand, disrupting the supply-demand equilibrium. In the European market, the price trend of Butyl Acrylate is surging gradually along with its cost support from the upstream Acrylic Acid market. The price support was also attributed to the higher demand from the downstream Paints and Coating sectors, which provided an opportunity for the distributors to raise their quotations. However, in China, the market witnesses an opposite price trend for Butyl Acrylate, as the inventory levels were sufficient prior to the Golden Week in October 2023 to fulfill the demand outlook.

In the North American market, a surge in the price trend of its upstream Acrylic Acid market elevated the production cost of Butyl Acrylate, leading to a price hike. In the US market, there was a modest increase in the Butyl Acrylate prices due to low inventory levels among storage units, while consumption of Butyl Acrylate is still lower due to tepid demand from the downstream Paints and Coating industry. In the Mexican market, the supply of Butyl Acrylate tightened due to the restrained import from the US, which contributed to the elevation in the price trend, and US suppliers restricted any negotiation to provide discounts on bulk purchases. Imports from China to Mexico were affected due to the drought in the Panama Canal, leading to the disruption of the supply in the market as the suppliers are facing jams in the port. Furthermore, it was decided to decrease the number of ships that can pass through the Canal at a time to prevent congestion.

In the Chinese market, the prices of Butyl Acrylate declined and settled at USD 1280/MT (FOB-Qingdao) with the week ending on 20 October 2023. An ample amount of inventory is present among the significant manufacturing units even after the Golden Week ended, as the existing stocks were fulfilling the demand from the downstream Paints and Coating sector, with no need to restock the storage units. However, the suppliers made up their minds to sell the Butyl Acrylate at discounts on the bulk purchases by the buyers to clear out the inventories for the fresh ones. In terms of the upstream market, the price of Acrylic Acid declined as well due to the lower demand from the domestic market, supporting the price trend of the commodity.

According to ChemAnalayst, the price of Butyl Acrylate is anticipated to display a bullish price trend across the globe in the forthcoming weeks, along with an increase in the upstream Acrylic Acid market. In the European and US markets, the strong market fundamentals and the gradual utilization of inventory will provide an opportunity to elevate their price trend to secure their profit margin and sales. Supply disruption from the overseas market will still persist in the North American market, which will keep the Petrochemical market on the front. Since the Golden Week in China has ended and the traders are utilizing the existing inventories, there is a possibility that the appetite of the downstream paints and Coating sector may increase, leading to a surge in the price trend of Butyl Acrylate.