Asia’s butyl acrylate (butyl-A) spot prices were largely stable but a softening domestic market in China is weighing on regional trading sentiment.
In the week ended 24 April, isotank prices of butyl-A in southeast Asia were assessed stable to soft at an average of $1,340/tonne CIF (cost, insurance & freight), down by $5/tonne from the previous week, according to ICIS data.
A spate of turnarounds in China had previously buoyed up domestic prices, but as supply improved, prices came under pressure in the absence of firm downstream demand.
Some downstream plants are currently operating at low rates amid heightened safety inspectionslaunched after the 21 March blast in Jiangsu province.
A soft China domestic trend may not lend optimism to the wider Asia market with China's exports increasing in recent years.
However, any downside to regional prices may be limited as production margins at current spot prices were already squeezed for Chinese and regional makers.
There was little change for the rest of the Asia market as May-loading discussions just started.
Some producers sought a rollover price from April, since feedstock propylene and n-butanol spot prices in Asia have been largely stable.
Spot butyl-A cargo availability in the region is currently sufficient to cover weak demand, with buyers procuring cargoes on a need-to basis.
Supply in China is not long due to recent plant turnarounds.
Overall demand in Asia is being curbed by general elections – Thailand (March) and Indonesia (April) and India (April-May) – as well as the upcoming Labour Day on 1 May, and the start of the Muslim fasting month of Ramadan on 5 May.
Recent spikes in upstream crude oil prices have yet to be reflected in the acrylate markets. Gains in the crude market tend to push up costs of acrylates feedstocks propylene and crude acrylic acid.
Acrylates are used in paint and coatings, plastics, and pressure-sensitive adhesives. - ICIS-