The Southeast Asian Acrylic Acid Market Follows Price Stability Amid Limits in Downstream Purchases

Tokyo, Japan: The Acrylic Acid market in Southeast Asian countries is currently experiencing price stability and cautious purchasing behavior due to the moderate and manageable downstream demand. Towards the year-end, sellers aimed to clear out their existing inventories for the upcoming fresh stocks. Both the Japanese and Malaysian markets experienced a prolonged stable price trend due to moderate demand in the Paint and Coating sectors. Additionally, the Acrylic Acid market is running smoothly which is attributed to low energy prices during the week ending on 29th December 2023, which resulted in the lower operating cost for Acrylic Acid, however, the prices of the product remained the same due to the moderate demand from the downstream Paint and Coating sectors.

The Japanese, as well as Malaysian markets, are experiencing stability in the Acrylic Acid market prices, providing buyers ease regarding placing large orders as the demand fundamentals from the  Paint and Coating sector remain fulfilled by the existing inventories. In response, sellers are maintaining the Acrylic Acid prices the same as with the previous week, however, they provided discounts on bulk purchases as the year-end approached. The market witnessed an overall smoothness in the supply and demand equilibrium, leading to clear stocks with moderate profit margins. Despite discounted prices on the Acrylic Acid, demand from the Paint and Coating industries remained subdued. Manufacturers observed a steady demand for Acrylic Acid, resulting in simultaneous material consumption.

Furthermore, the prices of its upstream Propylene market are following a stable trend as well and are reflecting on the prices of its derivative, Acrylic Acid. Businesses are refraining from making large-scale procurements and instead opting for immediate purchases. Traders may provide substantial discounts on significant volumes, leading to sluggish trading activities among the significant manufacturing units and putting pressure on sellers to quickly clear their stocks.

As per ChemAnayst, the prices of Acrylic Acid are expected to follow an upward trend as in the upcoming weeks, the restocking of the commodity might occur at a higher rate. Furthermore, as per the OPEC+ announcement, the supply cut of crude oil will be happening from January 2024 which may increase the energy cost resulting in the overall incline in the production cost of Acrylic Acid. Therefore, an increase in the demand for Acrylic Acid might speed up the purchasing activities resulting in increased trade among the significant manufacturing facilities. The market players may take this as an opportunity and might raise their ex-quotations considering it as a chance to raise their profit margins and sales.