Asian Acrylic Acid Prices Hold Steady Trend Amidst Market Turbulence

Klang, Malaysia- With the week ending on 01 December, the Acrylic Acid market is following a stable price trend at the lower end, showcasing the bearishness in the Southeast Asian market despite the decline in the prices of its upstream Propylene. Since the demand from the downstream Paint and Coating sectors is moderate, the uptake of the existing inventories is done sufficiently. Considering the bearish market trend for Acrylic Acid, the traders decided to keep their quotations intact, providing an opportunity to clear out their existing inventories for the upcoming fresh stocks.

In the Japanese market, the price of Acrylic Acid stabilized on the lower end with the trend of USD 920/MT (FOB-Tokyo) during the week ending on 1 December 2023. Focusing on the prices of the upstream Propylene, the prices are following a downward price trend, providing limited cost support to the Acrylic Acid. The producers decided to keep the production rate constant to maintain the supply/demand equilibrium due to the restrained demand from the downstream Paints and Coating enterprises. In terms of the export market, the demand from overseas markets, including India, is moderate. Therefore, smooth trading activities are continued, and there is no major disruption in the production rate for Acrylic Acid.

Similarly, the Malaysian Acrylic Acid market follows the same trend as the Japanese market. During the week ending on 1st  December 2023, the prices remained steady with the previous week at USD 800/MT (FOB-Klang). Producers have opted to maintain a consistent production rate in response to limited demand from the downstream sector of paints and coatings. This decision aims to uphold a balance between trade and demand in the market. Furthermore, the need to restock Acrylic Acid among the storage units remains necessary due to the constant consumption from the downstream enterprises. From the buyer's end, the purchasing activities are maintained to meet the rising demand from the downstream paints and coating sectors. All the above-mentioned factors contribute to the bearishness in the market situation of Acrylic Acid. The price trend of its feedstock, Propylene, is falling downwards, providing ease to the prices of the commodity.

As per ChemAnalyst, in the Southeast Asian market, the price trend of Acrylic Acid is anticipated to elevate due to the upcoming festive season, maintaining the high market offtakes. These factors may decide the extent of an uptick in the price trajectory for Acrylic Acid along with high trading activities from Japan and Malaysia to the overseas market. With the increase in the demand from the downstream Paints and Coating enterprises, traders are expected to raise their quotations to secure their profit margins along with the sales. Due to the increased demand, the buyers will keep up with their purchasing activities amid crippling product availability and the demand recovery from the regional market.