Omicron Induced Panic Buying Across Asia, Shooting Up Regional Acrylic Acid Prices
Impacts of Omicron variant have made its presence felt where first instances of variant induced supply shortage are manifesting in key Asian Acrylic Acid market. Southeast Asia has been at the forefront where trading activities have been badly hampered due to an increase in restrictions and a complete shutdown of crucial ports.
Rising new cases of Omicron have induced speculations and uncertainty in the global market, where traders have already started procuring and replenishing their inventories for future availabilities in hope of better margins. As per ChemAnalyst sources, traders across Southeast Asia have started raising their offers under the fear of the Omicron menace, which has been raising concerns over nascent recovered global trade activities. Consequently, further positive revisions in prices are expected for Acrylic Acid in the forthcoming weeks across the Asian market.
Resurgence in cases has blocked imports on major trading ports, while respective domestic demand maintained stability that led to the steep rise in the price trend of several commodities. These scenarios have risen again and hover around procurers’ heads. Indian consumers highly depend upon imports for Acrylic Acid, as BPCL is the sole manufacturer for Acrylic Acid in India. Meanwhile, Indian procurers are expecting price revision by BPCL in the near term for the domestic market. Despite, the Indian market is witnessing demand dullness since the festive season ended, while traders heard negotiating on their existing inventories, a sudden rebound in prices is anticipated by key players. Furthermore, global trade disturbance might also affect other countries like USA, turkey, China, and Spain for imports.
As per ChemAnalyst analysis, a ripple effect of Omicron on the global market may induce momentary instability across the global market and disturb Acrylic Acid pricing dynamics for a significant timeframe. However, pandemic-related issues might also impact the consumption of major economies including China and India across Asian markets, which might act as a counterbalance for the rate of price escalation.
