VAE Redispersible Powder Prices Surge in March 2024 Amid Supply Hurdles

In the final month of the first quarter of 2024, the US VAE Redispersible Powder market witnessed a notable 1.5% increase on a monthly basis, largely driven by heightened demand for the VAE Redispersible Powder from the downstream construction industry. This surge in demand can be attributed to the tight housing supply situation prevailing in the USA, as evidenced by recent government data indicating a significant shortage of housing units for sale—757,000 units in the fourth quarter, well below pre-pandemic levels of 1.145 million units. Despite a slight dip in outlays on multi-family housing projects in February, likely due to builders addressing backlog, construction companies played a pivotal role in bolstering the US job market, adding 39,000 jobs in March despite high interest rates. Concurrently, the unemployment rate dropped to 3.8%, with over 400,000 individuals joining or rejoining the workforce.

However, towards the end of the month, disruptions arose due to the collapse of the Baltimore bridge, impacting the supply of VAE Redispersible Powder in the US market. Efforts were underway to remove debris obstructing commercial traffic, indirectly affecting supply dynamics of VAE Redispersible Powder. Nonetheless, on a broader monthly scale, freight rates from North America to Asia and other routes saw a significant drop exceeding 20%. This decline in freight rates contributed to a more favorable global trading environment, prompting increased overseas orders for VAE Redispersible Powder and bolstering overall market sentiment despite localized supply interruptions in the US VAE Redispersible Powder sector.

The European market for VAE Redispersible Powder recently experienced a bullish trend, marked by a 1.5% increase in prices. This rise was influenced by several factors, including the influx of cheaper imports from overseas and supply shortages triggered by strikes in Germany's transportation sector. In March, train drivers staged a 24-hour strike, part of an ongoing dispute over working hours with the country's main railway operator, while cabin crew at Lufthansa also walked out. These strikes caused disruptions across the broader supply chain, impacting manufacturers and suppliers reliant on railway freight for importing raw materials or exporting finished products including VAE Redispersible Powder. Delays and cancellations due to strikes led to temporary shortages or delays in fulfilling orders, contributing to a bullish trend in the European VAE Redispersible Powder market.

Looking ahead, ChemAnalyst predicts a potential price increase for VAE Redispersible Powder in the upcoming period. This projection is driven by anticipated growth in the downstream construction sector, supported by optimistic supplier expectations for the peak demand season and rising energy prices. As commercial construction projects aim to reduce backlog, construction activities are expected to expand in April 2024, thereby increasing demand for VAE Redispersible Powder. This growing demand, coupled with supply chain disruptions experienced earlier, may further drive prices upwards in the European market.