Acrylates to Fluctuate as Market Moves Slowly on the Back of Coronavirus Outbreak

Restricted inbound and outbound movement of goods due to Coronavirus scare backed by dented manufacturing activities, has hard hit the global Acrylates demand. This has made volumes of Acrylate Esters available to the export market thereby affecting the entire value chain. India imports huge volumes of Chinese Butyl Acrylate due to lack of domestic manufacturing. Indian suppliers had to introduce downward revision in their offered prices this month as the demand remain subdued and crude futures fell, thereby forcing feedstock i.e. Ethylene and Propylene to plunge significantly. With increase in import duty of Butyl Acrylate in India from 5 to 7.5%, after the Union Budget 2020, domestic prices of Butyl Acrylate are expected to rise in the coming months. However, market would remain affected till the duration and severity of the outbreak remains.Restricted inbound and outbound movement of goods due to Coronavirus scare backed by dented manufacturing activities, has hard hit the global Acrylates demand. This has made volumes of Acrylate Esters available to the export market thereby affecting the entire value chain. India imports huge volumes of Chinese Butyl Acrylate due to lack of domestic manufacturing. Indian suppliers had to introduce downward revision in their offered prices this month as the demand remain subdued and crude futures fell, thereby forcing feedstock i.e. Ethylene and Propylene to plunge significantly. With increase in import duty of Butyl Acrylate in India from 5 to 7.5%, after the Union Budget 2020, domestic prices of Butyl Acrylate are expected to rise in the coming months. However, market would remain affected till the duration and severity of the outbreak remains.