The global acrylates market is set to tighten this year, as growing demand from the superabsorbent polymer (SAP) sector pulls material out of the supply chain. There are several acrylic acid (AA) plants scheduled to come on line in the coming years in Brazil, China and Saudi Arabia, but most are still several years away from completion.
A bullish outlook for feedstock costs is applying upward pressure on price ideas in all regions, and this is expected to continue. However, buyers remain strongly opposed to any price hikes amid wider macroeconomic uncertainty.
Demand in all regions looks set to improve in the coming months as the peak season for key end-use markets such as coatings and resins approaches. However there are concerns surrounding the Chinese market, stemming from government credit tightening and how this might impact purchase volumes. The ongoing cold weather in Europe may also have an adverse effect on any construction activity in the near future.