Superabsorbent Polymer market and its long-drawn-out bullish trend
- 30-Mar-2022 4:45 PM
- Journalist: Henry Locke
The Superabsorbent Polymer market has been optimistic in the global market for a long time with the developing nations becoming a major investment place for global key players. As per the latest assessment by ChemAnalyst, Super Absorbent Polymers (SAP) are rising in the global market, taking pressure from soaring upstream costs amid stable market fundamentals in their respective market. According to the data, a rise of more than 4% was observed for Superabsorbent Polymers in the Indian market during the January-February timeframe. However, the pricing dynamics for Superabsorbent Polymers remained volatile due to the rise in upstream value under the influence of the ongoing war between Russia and Ukraine.
As per the latest insights, Sumitomo Seika Chemical Group, which is a key producer of SAP in the Asian market, has announced a price revision on their product Aqua Keep, of around USD 200/MT effective from 1st April 2022 for the global market. The major reason behind this price increase was the rising crude oil value which is compelling acrylate manufacturers to keep on revising their offers in order to sustain their profitability.
On the other hand, key players in the USA have urged the government to investigate the prices of imported cargoes of SAP from South Korea. As per the information, key players in the USA have been urging that imported cargoes from South Korea have been quoted lower than fair value (LTFV). Thus, an antidumping duty investigation must be initiated to secure domestic manufacturers' welfare. Meanwhile, the rise in global crude oil value has already made an adverse impact on manufacturers' margins by pressuring input costs.
As per the ChemAnalyst analysis, Acrylate prices are already rising, including SAP in the global market, putting pressure on traders and consumers. Even though acrylic acid and acrylate have declined in India due to sluggish offtakes from the domestic market, being an imported commodity, a spill over effect was also observed for SAP in India. However, a new SAP plant by BPCL is already in process, which might get completed in the coming years.
