In 2009, the market price of acrylic acid in China was an overall increase, with an increase of about 30% for the whole year. This year’s upward trend has continued with the gradual recovery of the economy. “Now the price of refined acid in the acrylic acid market is roughly 17,600 yuan (ton price, the same below), and the price of polymerization acid is 16,700 yuan, which is very good for manufacturers and much higher than the 15,000 yuan at the highest level in the market in 2008. The sales staff of the sales department of Beijing Dongfang Chemical Factory expressed to reporters excitedly last week .
This year, the downstream users of acrylic acid, including SAP and water treatment chemicals, are gradually recovering. Adhesive manufacturers also claim that their market demand is gradually increasing; the paint market has begun to show recoverable growth since the second quarter, driving acrylic acid and esters. The demand for products began to accelerate; the most important products of esters, 2-ethylhexyl acrylate and butyl acrylate, were used primarily in the production of pressure-sensitive adhesives and sealants, and due to the insufficiency of market demand, the market for acrylic acid and esters was even greater. The price rose rapidly. At present, the price of polymerized acid has rapidly climbed from 11,300 yuan in March to 16,700 yuan, an increase of 47.8%.
With the expansion of the market, the production capacity of acrylic acid in China has been rapidly developed and it has met the domestic consumer demand. China's esterification grade acrylic acid production capacity was less than 140,000 tons in 2000, 1.14 million tons in 2009, an increase of 714%; general-purpose acrylic acid production capacity from less than 160,000 tons in 2000 to 850,000 tons in 2009, an increase of 431% . Especially since 2009, my acrylic acid has entered a good market with volume and price rising. This has led to a substantial increase in production capacity. Shanghai Huayi Group Acrylic Acid Co., Ltd. put into operation a set of 60,000 tons/year of equipment, and CNOOC's 200,000 tons of acrylic acid and ester equipment in Huizhou is also nearing production. This year, the production capacity of China's esterified grade acrylic acid will increase by 140,000 tons, and that of general-purpose acrylic acid will increase by 160,000 tons.
Zheng Chengwang, Executive Secretary of the China Acrylic Acid Association Secretariat, believes that since 2010, there has been a shortage of acrylic and ester products in the market. The main reason for the shortage of supply is due to the frequent occurrence of accidents and maintenance periods by some manufacturers during the period. Production problems have occurred. The limitation of the production of graded acrylic acid has caused a serious shortage of raw materials for downstream ester products.
Zheng Chengwang said that on December 9, 2009, an explosion occurred at Arkema’s CAA production facility in Texas, USA. On December 17 of the same year, a set of esterified grade acrylic units at the Dow Chemical Company, also in Texas, was stopped due to a failure. As a result, there was a shortage of supply of acrylic acid and esters in the United States, and many users turned to overseas markets for procurement. Since the beginning of this year, the supply of overseas markets has not been sufficient. The demand in the Asian market has continued to increase, and the supply has been tight. In Europe, due to the shutdown of several installations, the supply has become tense. In early March, South African Sasol Company reduced its sales of butyl acrylate to 70% due to accidental reasons; and Dow's equipment was also malfunctioning, and its supply of high-purity acrylic products was suddenly reduced by 25%. Since then, major producers of acrylic products, including BASF, Arkema, etc., have either reduced their output due to entry into the repair period or equipment failures. These further exacerbated the tension in the international acrylic acid market.
Recently, on August 11th, Arkema announced that it was irresistible and could not supply acrylate. European acrylate buyers will face more tension. At about the same time, another major producer, Dow, also announced that by September 1, various acrylic esters will increase by 250 euros. Dow’s letter to European buyers stated: “The global demand is very strong and our goods cannot fully meet the needs of users. In order to better guarantee supply and meet the increase in user demand in the next few years, this price increase is necessary. So that we can continue to invest in production facilities."
In general, the reason for the tighter acrylic market in the first half of this year was that the production capacity did not play well and there were some human factors. In the second half of the year, some obsolete acrylic acid and ester units began to gradually resume normal production. Acrylic acid and ester products are expected to show some degree of relief by the end of September. However, according to Cheng Chengwang, even if accidents and maintenance equipment are all resumed normal operation, the supply of the global market will continue to be tight as some major European installations enter the maintenance period one after another. It can be foreseen that the rising price of acrylic acid in the international market will inevitably affect the domestic acrylic acid market. Therefore, the acrylic market will continue to rise.
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