The US Butyl Acrylate Market Plunges, But Chinese Market Showcases Bullishness
- 16-Jan-2025 4:45 PM
- Journalist: Lucy Terry
At the start of the new year, the Butyl Acrylate market in the US and China is showing a mixed trend. The US market is maintaining stability at lower levels, reflecting bearish sentiments. In contrast, the Chinese Butyl Acrylate market is experiencing an upward trend as market players build inventories ahead of the Lunar New Year holidays.
In China, the Butyl Acrylate market is continuing its bullish trend with a 3% increase during the week ending January 10. This is driven by a rise in ex-quotations of Butyl Acrylate and increased transactions, as demand from downstream Coating and Construction sectors rises. Furthermore, Companies started stocking inventories ahead of the Lunar New Year holidays to avoid potential disruptions. The early Lunar New Year led to new orders for Butyl Acrylate starting sooner than usual from both overseas and domestic markets, causing heightened congestion and equipment shortages due to the pre-holiday rush and adverse weather conditions. Delays of up to four days were reported in Shanghai, Qingdao, and Ningbo, further affecting market dynamics during this period.
The downstream Coating and Construction sectors have shown a slight performance improvement, driven by government policies aimed at boosting housing demand and managing inventory, leading to a modest recovery. Additionally, Chinese coatings companies are capitalizing on their industrial and technological strengths to expand globally. In 2024, companies such as Junzilan, Bonfort, and Hengxing Co. established or announced new production bases in Vietnam and Thailand, while Zhancheng expanded operations to Indonesia, Mexico, and Ghana. Moreover, China's coatings export volume increased by 27.8% year-on-year in the first three quarters of 2024, highlighting the region's strategic shift from exporting products to building global brands.
However, in the US, the Butyl Acrylate market is showing stable yet bearish sentiments, primarily due to a 1% decrease in feedstock n-butanol prices, while acrylic acid prices remained unchanged, leading to lower production costs. Butyl Acrylate market activities were subdued, particularly in the downstream Construction sector, which faced seasonal slowdowns and economic challenges, resulting in hesitancy to start new projects ahead of anticipated policy changes in January. The impending presidency on January 20 added to the unease about potential trade and economic policies. The Paints and Coatings sector exhibited mixed performance. Given the limited demand for Butyl Acrylate from both Coating and Construction enterprises, market players chose to maintain stable quotations. Consequently, Butyl Acrylate market sentiments in the US remained stable yet bearish, reflecting a cautious approach from participants amid prevailing economic conditions and a challenging market environment.
The polar vortex continues to impact North America with an intense Arctic blast, causing frigid temperatures as low as 30-40 degrees below normal across Canada and the United States. This extreme weather has resulted in dangerous cold conditions, heavy snowfall, and significant winter storms. The severe weather is expected to persist through the second half of January, leading to dramatic temperature drops and disruptions in daily life. This ongoing situation has added to the uncertainty in the Butyl Acrylate market, reflecting the broader impact of environmental factors on market dynamics.
According to ChemAnalyst, the Butyl Acrylate market in the US and China is expected to see an increase in the coming weeks. This is due to the improving downstream Coating and Construction sectors in China, and the snowstorm in the US, along with the anticipated impact of Donald Trump's presidency which might result in the price hike of Butyl Acrylate.