Global Acrylic Acid Market Remains Stable Amid Supply-Demand Equilibrium, with Notable Regional Variations

Santos, Brazil:  The global Acrylic Acid market is experiencing stable trends, thanks to a balanced supply and demand dynamic. Prices remain steady due to consistent demand from the downstream Paint and Coating sector and adequate inventory levels. However, the South Korean market is seeing a slight upward trend due to increased demand.

In Brazil, the Acrylic Acid market is showcasing a stable trend at USD 1550/MT (CFR-Santos) during the week ending on 17th May 2024. The situation for the Panama Canal was analyzed to be getting better due to the traditional rainy season. However, the supply chain is disrupted due to the delay in the shipments from the US market to the Brazilian market because of the maintenance which was scheduled in May from 7th May to 15th May, for the Gatun Locks in Panama Canal, which reduced the transits. Therefore, many trades were still taking place via the Cape of Good Horn. Despite this, the Acrylic Acid market is steady as the market players stocked up their inventory levels for the anticipated demand from the downstream Paint and Coating enterprises.

Similarly, in the European nations, the Acrylic Acid market is experiencing a stable trend during this week, despite the lower production cost of the commodity because of the decline in the prices of the feedstock Propylene market. The demand for Acrylic Acid from the downstream Paint and Coating sector was moderate along with the ample inventory levels. Therefore, the market traders are continuing with the same quotations for Acrylic Acid as the previous week to prevent the market scenario from moving toward either a bearish or bullish sentiment. Regarding the spread, the gap between Acrylic Acid and Propylene remained the same as the previous week signaling the stable market sentiment for the commodity.

Despite the stability in the feedstock Propylene market, Acrylic Acid prices in South Korea witnessed a slight incline of 0.5% during the end of the third week of May 2024. The supply chain of Acrylic Acid was hampered due to the holiday weeks in Japan and China. In Japan, due to the Golden Week from the 29th of April to the 5th of May, the market was closed, and from the 1st of May to the 5th of May, due to the Labor Day holidays, the market operations were paused. Additionally, the demand for Acrylic Acid from the downstream Paint and Coating sectors is experiencing an incline increasing the consumption rate of the inventory levels of Acrylic Acid and resulting in the supply-deficiency. Furthermore, in terms of the spread, the difference between Propylene and Acrylic Acid broadened indicating a bullish market scenario for the commodity.

As per ChemAnalyst, the Acrylic Acid market is anticipated to incline in the upcoming weeks due to the expected increase in the demand from the downstream Paint and Coating sectors. Therefore, the trading activities and the production rates are expected to increase as well to meet the demand for Acrylic Acid from the downstream enterprises.