Steady Prices Prevail in American Butyl Acrylate Market Amidst Slowing Demand

Santos, Brazil- In the American market, Butyl Acrylate showcased a constant price trend despite the inclination in the prices of its feedstock, Acrylic Acid. Since the end users consumed the inventories, this created the need to restock the commodity; therefore, the trading activities for Butyl Acrylate among the significant manufacturing units remained constant as well. Negotiations remain lull among the manufacturing units, which resulted in the steady price trend, capping the further gains in the Butyl Acrylate market.

In the Brazilian market, the price trend of Butyl Acrylate experienced stability similar to the previous week, with the price range of USD 1630/MT (CFR-Santos) during the week ending on 17 November 2023. However, the imports from China to Brazil were reduced due to low demand from the downstream Paints and Coating sectors. Furthermore, no compromises were possible in terms of prices of Butyl Acrylate, contributing to flat prices from the past few weeks. Additionally, Brazil faced a heavy flood along with multiple tornadoes, which started on 14 November 2023, due to the El Nino effect, which created a hurdle in the transportation of Butyl Acrylate from the ports to the warehouses.

The transport of Butyl Acrylate from the USA to Brazil has been affected due to the low water level in the Panama Canal, which continuously delays the shipments. The shipping companies had to pay extra to overcome the consequences of the congestion caused at the Panama Canal, which is way higher than what they paid in 2022. In terms of the upstream market, the prices of Acrylic Acid showcased an upward price trend; however, due to low domestic demand for Butyl acrylate, the prices stood at a steady rate.

In the North American market, the prices of the USA and Mexico both remain steady, with no major purchases from the suppliers to buyers. Since there was moderate consumption of the supplies by the end-users, the producers kept their production rate intact so that the supply-demand equilibrium could be maintained. The upstream acrylic acid market inclined, which led to an increase in the operational cost of Butyl Acrylate, but lackluster end-user requirements still prevail. All the above-mentioned factors resulted in constant purchasing activities from the buyer's end. Responding to these market conditions, suppliers decided to keep their quotations as they were, ensuring the stability to maintain the ongoing buying activities from the end users.

According to ChemAnalyst, the prices of Butyl Acrylate are expected to incline in the Brazilian market due to the anticipated reduction of 30% on the booking windows for the Canal's neopanamax locks by 1 January 2023, which can create a gap between supply and demand. Furthermore, in the North American market, the price trend of Butyl Acrylate is anticipated to rise due to the possible increase in demand from the downstream paints and coating sector. All these factors might play an important role in providing cost support from the upstream market, eventually increasing the price trajectory for Butyl Acrylate.