Acrylic acid-Acrylate esters

Following seasonally soft demand at the beginning of the year, spring demand for acrylate esters has picked up slightly, in line with increased activity in the construction sector, but is lower than normal.

Buying interest and consumer confidence has been hampered by weak economic conditions, ongoing concerns regarding the eurozone debt crisis and colder-than-usual temperatures in Europe in April and May.

Demand from the derivative coatings sector usually strengthens in spring, but it has only increased slightly since March and offtake from the construction sector is slow.

Supply and demand are likely to remain balanced in the coming months, but some planned turnarounds are likely to tighten the availability of some esters from time to time.

Feedstock cost pressure from the propylene industry as well as a need for producers to recoup margins, is expected to put upward price pressure on the market. However, there are concerns that demand will be weak, or sporadic at best, and this is likely to temper any significant price hikes in the short term.

Spot prices have fluctuated in recent months and are expected to do so in the coming weeks, on the back of an uncertain outlook.

Updated to mid-May 2013