Acrylic Acid Prices Explained

Acrylic acid prices demonstrated varying market trends as supply and demand dynamics influence the commodity’s regional value. North America, Europe, and MEA (Middle East and Africa) regions showed positive growth as increased demand from the paint and coating sectors kept their inventory levels in check. On the other hand, APAC (Asia Pacific) posted a decline in price trend due to low demand from the paint and coating industry.

Conversely, South America registered an inclining trend as propylene prices increased which led to increased production costs. Also, redirected supply routes from the Panama Canal to Cape Horn caused delays and spiking of acrylic prices. 

Why are acrylic acid prices fluctuating?

1. Southeast Asian Price Stability

Acrylic acid prices showed price stability in major Southeast Asian markets, particularly in the Japanese and Malaysian markets. The cautious purchasing behavior due to the moderate and manageable downstream demand from the paint and coating sectors keeps the commodity’s marketability.

2. Crude Oil Prices

Acrylic acid prices showed a notable increase due to the rise in feedstock costs brought on by higher crude oil prices. Moreover, limited feedstock availability resulted from delays in manufacturing at many plants and port congestion in July and August. Thus, major importers such as India, the Middle East countries, and China experienced disruptions due to the tightened supply chain which contributed to the surging of acrylic acid prices.

3. Freight Costs

Hurricane Ida slowed the U.S. domestic supply and the closure of China’s Ningbo port in August lessened the commodity’s influx to these countries. Also, the cost of freight increased on important trade routes between the U.S. and Asia which raised the costs of chemicals, particularly acrylic acid prices. Furthermore, the third quarter showed price increases due to strong demand from downstream industries including adhesives, paints, and coatings.

4. Weather Conditions

Significant production shortages in the European market due to unfavorable weather circumstances such as transportation difficulties and frozen railway lines resulted in supply deficits in various countries.

In addition, the poor weather caused Evonik and Radici to declare a strike on their acrylic acid factories in Germany. This, along with limited supply and strong regional demand, contributed to the continuing high acrylic acid pricing in Europe throughout the second quarter.

Which variables impact the price of acrylic acid?

• Southeast Asian Price Stability
• Crude Prices
• Freight Costs Hike
• Weather Conditions
• Market Conditions
• Regulatory Changes

Where does acrylic acid come from?

Acrylic acid is an organic molecule that corrodes both in liquid and vapor form. Also, it is a valuable raw material that finds versatile applications in the production of plastics, detergents, paints, polishes, medical products, wastewater treatment chemicals, and various polymers.

It is primarily derived from propylene, a petrochemical sourced from fossil fuels. Here is a simplified overview of the process:

1. Propylene Feedstock – Propylene is obtained from the petrochemical sector as a residue of procedures used to refine natural gas or crude oil.

2. Oxidation of Propylene – It is a crucial step in the creation of acrylic acid. Propylene and air are reacted in this method at high temperatures with the help of a catalyst, usually a metal oxide. Then, it is changed into acrolein through the oxidation process.

3. Conversion to Acrylic Acid – After the oxidation stage, acrolein is subjected to further oxidation to create acrylic acid. Typically, it is done using a catalytic vapor-phase oxidation procedure.

4. Purification – During the oxidation step, crude acrylic acid is created. Purification procedures are used to get rid of these impurities.

5. Final Product – Once the process is complete, the resulting acrylic acid is in its final state and ready for application across various industrial uses.

What are the uses of acrylic acid?

Generally, it is used in industrial processes to produce polymers for various plastic items. For instance, sodium polyacrylate is a water-absorbing material that comes from acrylic acid and is widely used in diapers, adult urinary products, and agricultural operations to improve water retention.

Additionally, it helps thicken fluids and is useful in environmental applications including water treatment. Some of the industrial applications of acrylic acid are

1. Coatings and Adhesives – Acrylic resins are used in paints and adhesives. Also, acrylate coatings are widely used on a variety of surfaces due to their strength, resilience to weather, and adaptability.

2. Textiles – It is used in the textile industry to create acrylate polymers which are necessary for the production of synthetic fibers and fabrics.

3. Water Treatment Agent – It is useful as a chemical agent for treating water in the petroleum, chemical, metallurgical, transportation, light industrial, and textile industries,

4. Personal Care Products – Its derivatives are found in numerous personal care products, including skincare and hair care formulas as it functions as a stabilizer and thickener.

5. Automotive Applications – It improves the functionality and appearance of automotive products in coatings, adhesives, and sealants.

6. Construction and Sealants – Some construction materials incorporate acrylic acid to make caulks and sealants due to their sealing properties that maintain flexibility, adhesion, and strength.

What is the future price of acrylic acid?

The adoption of advanced acrylic-based polymers in key industries like automotive, construction, and electronics propels the growth of the acrylic acid market. Additionally, the emerging demand from the super-absorbent polymer industry (acrylic acid is the primary material for production) due to the rising aged population requires incontinence products like disposable diapers, propelling its market growth. 

Also, a growing need for water-treatment polymers, such as polyacrylamide is another price booster as it is useful for recycling and treating wastewater. Moreover, the indispensable role of this commodity in the paint and coating production keeps its marketability. Furthermore, the expanding water-based acrylic coating continuously gains favor in the market due to its low VOC (volatile organic compounds) emissions and eco-friendly nature. 

Overall, the price of acrylic acid will be $1.54 per kilogram in 2028 and its global market is expected to reach $10.01 million tons by 2029, growing at a CAGR of 5.19% during 2024-2029.