03 September 2010 00:47 [Source: ICIS news]
By Joseph Chang
“Demand for water treatment chemicals is exceeding supply across the board - from antiscalants, biocides to corrosion inhibitors,” said Paul Turgeon, president of BWA Water Additives.
“The industrial water treatment market, which saw a slight step back in 2009, has now more than fully come back, while the desalination market continues to grow strongly,” he added.
BWA markets maleic and acrylic acid-based antiscalants used in reverse-osmosis membrane desalination. Antiscalants prevent the formation of solid deposits known as scale, which can inhibit operations.
BWA markets maleic anhydride-based antiscalants for industrial water-treatment applications.
Price surges in the acrylates market, which started in early 2010 and have continued through the year, have recently impacted the pricing of its acrylates-based antiscalants, noted Turgeon.
“We started to feel the pressure early this year, but we tried to offer our customers price stability. We held pricing steady for eight months, but now we’ve had to increase prices 5-8%, effective September 1,” he said.
In late August, two more
Earlier that month, Dow Chemical announced hikes of 15 cents/lb for several of its
Contract prices for
While the acrylates market is tight, BWA said supply is not a problem.
“There is no supply issue. We are not depending on a few plants, but have multiple sourcing partners across the
On the industrial side, regulatory and cost pressures to reuse water are the main growth drivers, said Phil Mateo, marketing and technology director of BWA Water Additives.
In the desalination market, scarcity of water for drinking, industrial use and agriculture have driven growth for antiscalants and biocides, he added.
BWA employs an asset-light business model, where it focuses on technology and developing new products while contracting out production, noted Turgeon.
However, the company remains active in sourcing raw materials such as acrylates and maleic acid, he added.
($1 = €0.78)
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