AFPM ’19: US acrylates demand expected higher, supply ideas vary

Larry Terry

24-Mar-2019

SAN ANTONIO (ICIS)–US glacial acrylic acid and acrylates demand will continue to improve, at least moderately, in the second quarter, a factor the market seems to agree on.

But sources on the sidelines of this year’s International Petrochemical Conference (IPC) saw acrylates supply as either generally balanced with buying interest, or already long enough to pressure prices lower for April, factoring in the recent 3 cent/lb ($66/tonne) drop in March propylene.

The US spring paints and coatings season officially begins next month, but the usual demand momentum seen in the first quarter has been diminished by  economic concerns as well as freezing temperatures and record rainfall this winter.

A producer said it saw “solid demand” in the first quarter, however, and expects year-on-year acrylates demand to grow by 2-3% this spring, which closely approximates some paints-demand forecasts.

But a buyer asserted that weaker and likely longer near-term propylene, and a potentially soft paint season, will lengthen acrylates supply and diminish the market’s usual spring pricing power, especially if demand weakness prompts competition for market share.

Acrylates are commonly used to make products including paint and coatings, plastics and construction and pressure-sensitive adhesives.

US acrylates suppliers include Arkema, BASF, Dow Chemical and Sasol.

Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 24-26 March in San Antonio, Texas.

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