VAE Redispersible Powder Prices Decline in USA and Europe Amidst Low Industry Demand

In Germany, the price of VAE Redispersible Powder fell by approximately 7.1% during May 2024, reflecting a similar 7% decrease in upstream crude oil prices. This reduction in crude oil costs significantly lowered production expenses for VAE Redispersible Powder, leading to a bearish market trend. Additionally, demand from the downstream construction industry remained notably low, as Germany's construction sector was mired in a contraction phase. Sharp declines in total industrial activity and new orders persisted, with downturns across all three main construction categories. Housing activity was the worst performer, though its rate of decline slowed to the lowest in eight months. Meanwhile, commercial building projects continued to drop at a marked pace, unchanged from April, and civil engineering projects experienced an even deeper rate of decline, further reducing demand for VAE Redispersible Powder.

In May, the US VAE Redispersible Powder market also experienced a cost decrease due to an influx of cheaper imports from Europe, particularly Germany, the primary supplier of VAE Redispersible Powder to the US. This price reduction was compounded by low demand from the downstream construction industry, as construction spending in this sector had been declining over the past few months. Additionally, the supply of VAE Redispersible Powder was bolstered by the full restoration and resumed services of the federal navigation channel for Baltimore Harbor, enhancing product availability. Regarding manufacturing activity, the US Manufacturing Index showed a slight decline in April but still indicated growth in new orders, suggesting an expansion in production midway through the second quarter. Business confidence also improved, leading to increased hiring, higher purchasing activity, and an accumulation of finished goods stocks as companies anticipated future growth in the sector. Overall, the dynamics in the US VAE Redispersible Powder market in May 2024 highlighted the interplay between international trade influences, regional demand shifts, and domestic manufacturing resilience, contributing to the market's upward price momentum amidst positive economic indicators.

According to ChemAnalyst, the price of VAE Redispersible Powder is expected to decline in the coming month due to anticipated low demand from the downstream construction industry. This sector is likely to remain under pressure from ongoing inflationary trends, which are eroding purchasing confidence among consumers. As inflation continues to affect the cost of construction materials and overall project expenses, consumers and businesses may be hesitant to invest in new construction projects, leading to a reduced need for VAE Redispersible Powder. This decreased demand is poised to exert downward pressure on prices in the near term.