Acrylic acid
07 June 1999 00:00 [Source: ICB]
Overcapacity in Asia has done little to dampen growing
world demand for acrylic acid, fuelled by the growth of
superabsorbant polymers
Supply/demand balance
World annual capacity of crude acrylic acid is approximately
2.9m tonne with demand set at slightly less than that. Demand for
acrylic acid has grown at 7%/year in the first half of the 1990s
but has dropped to an annual growth rate of just below 5% during
the second half of the decade. Problems facing acrylic acid
producers are the squeeze on profit margins because of the increase
in raw material prices and pressure on prices because of
overcapacity in Asia. Capacity has been added there in recent
months with the opening of the 60 000 tonne/year Singapore Acrylic
plant in Singapore (the joint venture with Sumitomo Chemical and
Nippon Shokubai) in Q1 1999.
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Uses
Crude acrylic acid is used to produce glacial acrylic acid and
acrylic esters. Glacial acrylic goes into monomers for the
production of superabsorbent polymers (SAPs) and products like
detergents and polymer dispersions. SAPs account for a quarter of
the world acrylic acid market and have had growth rates of 9%/year
in the last five years. Acrylic acid is also used in the production
of commodity esters, which include methyl, ethyl, n-butyl and
2-ethylhexyl acrylate. The largest volume ester is butyl acrylate
followed by ethyl acrylate.
Technology
Although acrylic acid has been produced by the reaction of
acetylene, carbon monoxide and water or alcohol, modern plants are
based on a two-step propylene oxidation process via acrolein. The
oxidation of propylene produces acrolein, acrylic acid,
acetaldehyde and carbon oxides. Acrylic acid from the primary
oxidation can be recovered while the acrolein is fed to a second
step to make acrylic acid. Purification can be carried out by
azeotropic distillation.
Health & safety
Acrylic acid is a clear liquid with a sharp odour that is
corrosive and reactive. Vapours may irritate the eyes, nose and
throat and even very small exposure can cause a rash.
Pricing
The Asian acrylic acid market was set to go into oversupply even
before the Asian crisis hit and regional capacity of 900 000
tonne/year is now outstripping domestic demand - estimated to be
around 650 000 tonne/year. With the oversupply has come the
substantial drop in prices, plummeting 20-25% in the last year (see
graph). Asian imports into the US and Europe have increased by 50%
in the last two years which has put pressure on pricing. However,
prices are on the way up again, mirroring the increase in feedstock
prices over recent months. There has also been a slight increase in
Q2 contract prices in Europe and there are signs that prices may
increase in Asia too. European producers are expecting a second
half hike in the US.
Outlook
World demand for acrylic acid remains strong with the US, South
America and Europe pushing expected demand growth rates to between
4-6% in the next few years absorbing the overcapacity in Asia. The
strong growth of superabsorbent polymers at 5% is the main reason
for this. Heavier ester application such as coatings and adhesives
are also continuing to perform well and are predicted to grow 3-4%
in the next two years.
Recent moves to help tighten the global market include Rohm
& Haas' postponement of its 100 000 tonne/year Antwerp,
Belgium, acrylic acid plant until at least 2003 and the Elf
Atochem/Nippon Shokubai joint venture American Acryls' decision to
delay its 120 000 tonne/year plant in Bayport, Texas, in the US
until second half 2001. BASF-Yangzi's planned venture in China has
also been delayed until at least 2003.
GLOBAL CRUDE ACRYLIC ACID CAPACITY, '000 TONNE/YEAR
| Company |
Location |
Capacity |
| BASF |
Antwerp, Belgium |
160 |
| Chemicke |
Sokolov, Czech Rep |
45 |
| Elf Atochem |
Carling, France |
240 |
| BASF |
Ludwgsfn, Germany |
270 |
| Stockhausen |
Marl, Germany |
90 |
| Dow Celanese |
Böhlen, Germany1 |
80 |
|
| Celanese |
Vera Cruz, Mexico |
40 |
| BASF |
Freeport, Texas, US |
300 |
| Celanese |
Clear Lake, Texas, US |
280 |
| Rohm & Haas |
Deer Park, Texas, US |
465 |
| UCC |
Taft, Louisiana, US |
109 |
| American Acryl |
Bayport, Texas, US |
120 |
| Mitsubishi |
Yokkaichi, Japan |
110 |
| Sumitomo |
Niihama, Japan |
80 |
| LG Chemical |
Naju, South Korea |
60 |
| Formosa |
Mailiao, Taiwan |
90 |
| Beijing Eastern |
Beijing, China |
40 |
| Shanghai |
Shanghai, China |
30 |
| Jilin Chemical |
Jilin, China |
27 |
| BASF Yangzi |
Nanjing, China3 |
160 |
| BASF Petronas |
Gebeng, Malaysia4 |
160 |
| Singapore |
Pulau Sakra, Singapore |
60 |
| Nisshoku |
West Java, Indonesia |
60 |
| 1 end 1999; 2 H2 2001; 3 2003;
4 2000 |
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