Inflationary Pressure and Stable Demand Propelling Erucic Acid Prices to Rise Further

As per the ChemAnalyst, the price of Erucic Acid has keenly increased in the last few months due to increased demand from the end-use industries. The reviving demand from the food and pharmaceutical industry has witnessed stagnant growth in the recent past and a tremendous increase in demand from plastic and polymer industries and various industrial applications.

Recently, the price of Erucic Acid gain stability by showcasing a marginal hike of around 0.5% by the first week of June post tremendous increase in May. These price revisions were bolstered by India's stable demand from domestic end- use industries. Demand fundamentals for the product from metalworking and plastic additives industry have been creating ample opportunities for manufacturers operating in the Erucic Acid market.

In Germany, the price has hike by 4.8% in the first week of June for the Erucic Acid market owing to the rising regulations on the use of environmentally friendly additives for lubricants, polymers, the metalworking sector. Europe is considered as a leading region for the global Erucic Acid industry among others as rapeseed and canola are widely cultivated in this region. Consequently, due to increase in the demand from the domestic plastic and polymer films industries as major additives, the demand of Erucic remained high in the domestic market of Germany.

In Belgium, the price of Erucic Acid is increase by 4.7% in the first week of June, due to increase in demand from the polymers and plastic manufacturing industries. Rising energy cost has also remained a matter of concern for domestic players, as prolonged firmness in crude and natural gas value kept on affecting priding dynamics for several products including Erucic Acid. As per ChemAnalyst report, it is estimated that stringent regulations and shift of manufacturers to use of eco-friendly additives has generated significant traction in the Erucic Acid demand in the regional market.