Updated to mid-November 2009
Asian market review by Cheong Su Yeen, ICIS pricing
Asian acrylic acid spot prices firmed by 8.6-11.6% in the key China market during mid-August to mid-November. Prices trended higher amid tremendous upstream pressure from rising feedstock propylene and oxo-alcohols values coupled with tight supply in the region.
Imports were heard to be limited due to strong domestic demand in other parts of the region such as Korea and Japan. Meanwhile, the price increases in the southeast Asian (SE Asia) region were more subdued at 2.9-5.5%.
Prices softened slightly by $20/tonne in mid to end September due to reduced buying interest ahead of the National Day holidays in China.
In November, prevailing cost pressure prompted sellers to raise offers. Fearing further price hikes, buyers refilled their tanks. Spot prices were assessed at $1,470-1,500/tonne CIF (cost, insurance and freight) China and $1,350-1,400/tonne CIF SE Asia respectively on the week ended 18 November.
European market review by Sian Jones Souabni, ICIS pricing
Due to market changes, ICIS pricing has added an official monthly contract quote to the acrylic acid, Europe report as of mid-September 2009. The quarterly contract quote was considered to be redundant and would not be updated beyond Q3 2009.
Given the varied starting points for acrylic acid freely negotiated contract discussions, final ranges were also confirmed by both buyers and sellers at €1,050-1,130/tonne FD (free delivered) NWE (northwest Europe) for August, reflecting around a €30-100/tonne hike.
In September, propylene contracts settled reflecting a €93/tonne gain. Acrylic acid producers cited a tight supply position and the need for costs to be covered. After much discussion, both buyers and sellers agreed that a range of €1,100-1,160/tonne FD NWE was representative of September contracts, reflecting average hikes of €30-50/tonne. Higher and lower increases had also been reported.
Towards the latter part of September acrylic acid availability improved and attempts in October to again lift numbers was hampered by lower demand and a better supply position. As a result, despite higher raw material costs, a rollover and decreases of around €50/tonne were reported for those who had paid high in September. October contract prices for acrylic acid were confirmed by sellers and buyers at €1,080-1,120/tonne FD.
By mid-November, demand was widely described as fair and in some cases, better than expected, but lower than the preceding few months. Supply had improved and again despite a minor decrease on propylene of €10/tonne, sources generally reported a rollover to decreases of around €20-30/tonne. Again, players with accounts at high levels in October would benefit from decreases in November. Final ranges have not yet been widely confirmed but a range mirroring spot levels was deemed representative by many at €1,050-1,100/tonne FD NWE.
US market review by Larry Terry, ICIS pricing
Freely negotiated monthly contract prices for US acrylic acid and acrylate esters rose by 3-4 cents/lb ($66-88/tonne) on feedstock pressures early in the three-month period leading up to mid-November, then gained another 8-9 cents/lb in October. Contract prices, however, were headed downward at the end of the period as primary feedstock chemical-grade propylene (CGP) gave up 10 cents/lb in October after gaining 12 cents in the previous month.
The run-up in CGP prices stemmed from tight supply, steady demand and quickly rising refinery-grade propylene values. Propylene cost was the primary price driver during the period as acrylates demand remained well below year-earlier levels and also down sequentially - especially in the new construction and automobile sectors.
Buy-side acrylates inventories began to run low late in the three-month period as buyers destocked, but buying interest appeared to return nominally in November as buyers began to rebuild their stocks slowly despite anticipating a seasonally weak fourth quarter.
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Acrylic Acid
Uses and Outlook
Acrylic acid and esters are a versatile series on monomers that provide the performance characteristics to many polymer formulations. Major markets for the esters include surface coatings, textiles, adhesives and plastics. Polyacrylic acid or copolymers find applications in superabsorbents, detergents, dispersants, flocculants and thickeners. Superabsorbent polymers (SAPs) are used mainly in disposable nappies.
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Acrylic Acid
Process Technologies
Acrylic acid became commercially available when routes based on the reaction of acetylene with water and carbon monoxide, or an alcohol and carbon monoxide to give acrylic acid, were developed. Another early process was the reaction of ketene, obtained by the pyrolysis of acetone or acetic acid, with formaldehyde. All these processes are now obsolete.
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