European Acrylic Acid Prices Elevate With Rise in Downstream Demand
- 07-Mar-2023 2:47 PM
- Journalist: Timothy Greene
The European Acrylic Acid market remains pressured by an increase in demand from the downstream paints and coatings market and is gripped by a certain rise in product prices. The construction sector had been flat since the industry gained 27% this year, better than the past year.
With demand from the downstream construction sector dominating the Acrylic Acid supply in the region, the prices shot up, and supply flexibility is trying to cope with fragile and uncertain conditions in the market. The market value of Acrylic Acid elevated in the French market during March 2023, with prices ranging at USD 1733/ton FD Le Havre as per ChemAnalyst Research Team Data.
More sales of Acrylic Acid are being generated by the construction industries, and subsequently, their profits are increasing too in France. Over the last few days, the Oil and Gas industry has remained flat; industrialists are optimistic about the French Oil and Gas industry and appear confident about long-term growth rates. Technip Energies in France has stood out, gaining 8.6%, impacting the feedstock prices of Acrylic Acid (Propylene)as well.
In addition, some acrylates, such as Butyl Acrylate Monomer (BAM), have entered the US market from Russia via different trade routes, such as Finland. Despite a downward trend in other European countries, modest downstream demand supported Acrylic Acid's price. Producers also had to increase their input costs due to disrupted European market dynamics. However, strengthening demand fundamentals for Acrylic Acid supported the convertors to raise prices further.
The freight charges depleted from North Europe to East Asia and other regions, with a decline in the Global Freight Index by 10%, as quoted by the traders. Analysts are more optimistic about the Energy Service Industry, expecting annual earnings growth by 30% in the coming years. France's energy industry experienced a growth in the purchase of its products, affecting downstream petrochemical prices like Acrylic Acid.
