Are price trends beginning to change direction in the acrylic acid and acrylates market?

Tight supply conditions and rising feedstock prices have plagued the global acrylic acid and acrylates markets in early 2017. Prices increased in all regions, boosted not only by the supply/demand imbalances in the market, but also by firm feedstock prices. In the US, the substantial increase in propylene contract values drove up acrylics prices, and Asian prices also increased in the wake of rising feedstock costs. The European market was impacted by both these factors, but the situation was compounded by the explosion and fire at BASF’s Ludwigshafen site in October 2016. Deliveries of acrylic acid and acrylates to European customers have been quite regular since late 2016, although the uncertainty over supply has created some volatility. Supply in the US market has been curtailed in the first few months of the year by ongoing issues at Arkema’s Clearlake site.

In May, there has been a change of direction, with prices in Asia and the US beginning to plateau or even to soften. European prices are expected to reflect a similar picture in the coming weeks.

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Rachel Uctas-web(2)

Rachel Uctas
Senior Consultant – Acrylic Acid & Acrylates
Phone: +44 207 924 3955
rachel.uctas@orbichem.com

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