For the Quarter Ending September 2024
North America
In Q3 2024, Superabsorbent Polymer (SAP) prices in North America, especially in the USA, showed a mixed trend. Market dynamics were shaped by strong demand from the construction sector, rising global freight rates, and container shortages. The first two months of the quarter saw a downward trend in prices, driven by inexpensive imported cargo from overseas. However, in the last month, prices increased by 2.5% due to supply chain disruptions. The construction industry in the USA experienced moderate growth, which led to higher consumption of SAP.
Concurrently, rising labor costs and supplier charges further pushed prices upwards. The market faced additional uncertainties stemming from potential strikes at ports and approaching storms in the Gulf of Mexico, which impacted purchasing decisions. Moreover, disruptions in shipping routes and congestion at ports exerted additional pressure on prices, while plant shutdowns further intensified the supply chain challenges throughout the quarter.
The quarter recorded a 6% increase from the previous quarter, with a 2% price variance between the first and second half of the quarter. Ultimately, the quarter-ending price stood at USD 1620/MT of SAP CFR USGC in the USA, reflecting a positive pricing environment characterized by increasing trends and strong demand.
APAC
The third quarter of 2024 has been characterized by a mixed trend in Superabsorbent Polymer (SAP) pricing across the APAC region. Several key factors have influenced this market dynamic. The first two months of SAP market declined in China and latter quarter rose due to supply disruptions. Traders reported varied demand conditions: some experienced moderate demand, while others saw sluggish activity, with some buyers choosing to wait and see. Chinese factory activity slowed, exacerbating economic strain amid a prolonged property sector crisis. Further, heavy rainfall and flooding in some areas complicated construction efforts and caused logistical challenges. These adverse conditions led to a slowdown in ongoing projects and hesitance to initiate new ones, reducing demand for the product and reflecting the trend of weakened construction activity in the affected regions. These factors collectively contributed to the stable SAP market, as demand constraints balanced out with supply challenges. Consequently, firms reduced their purchasing activity, although employment levels remained relatively steady. In the latter quarter typhoon Bebinca intensified the situation, causing severe flooding and disrupting logistics during the Mid-Autumn Festival, making transportation more challenging and adding to the already moderate demand. These factors have created significant uncertainty for market participants, who are dealing with tight supply, and logistical obstacles, all of which are contributing to the incline in SAP prices. Moreover, a 2% price hike was observed from the preceding quarter, indicating a continued upward trajectory. The quarter-ending price for SAP in China stood at USD 1343/MT FOB Qingdao, underscoring the prevailing positive sentiment in the pricing landscape.
Europe
In Q3 2024, the Superabsorbent Polymer (SAP) market in Europe experienced a generally stable pricing environment, characterized by minimal fluctuations. This stability was largely supported by steady demand from essential sectors such as hygiene, agriculture, and healthcare, which continued to drive consumption despite broader economic uncertainties. However, Germany stood out with notable price fluctuations, reflecting a more dynamic market landscape. Several factors contributed to this volatility, including ongoing supply chain disruptions that hindered the timely delivery of raw materials and finished products. Additionally, rising input costs—stemming from energy price increases and raw material shortages—placed pressure on manufacturers, prompting them to adjust pricing strategies. Throughout the quarter, the balance between supply and demand remained relatively stable, allowing many manufacturers to adapt effectively to changing market conditions. Some companies focused on optimizing production processes and exploring alternative sourcing strategies to mitigate cost pressures. As a result, while the overall European SAP market exhibited resilience, the specific challenges faced in Germany highlighted the complexities of regional dynamics within the broader landscape. This adaptability underscores the industry’s capacity to navigate evolving economic conditions.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, North America's Superabsorbent Polymer (SAP) market has experienced a notable surge in prices, driven primarily by a stark imbalance between demand and supply. The increase in SAP pricing has been fuelled by heightened demand from downstream sectors such as agriculture and personal care, which are particularly active during the summer season. This surge in demand, combined with persistent supply constraints, has created a bullish market environment. Consumption patterns have been robust, with strategic inventory accumulation further tightening supply. Logistical disruptions, including a significant incident at the Port of Baltimore, have exacerbated these supply chain challenges, adding additional pressure to SAP pricing. Notably, there were no major plant shutdowns reported during this period.
In the United States, the SAP market has seen the most dramatic price changes. Strong demand, coupled with limited supply, has intensified market conditions, allowing suppliers to command higher prices. Seasonal factors and increased manufacturing activity have further strained the supply-demand balance, creating favourable conditions for suppliers to achieve higher profit margins. Despite unfavourable export conditions, there has been notable export activity to South America, driven by heightened demand from the agricultural sector there. Overall, the price trend has been upward throughout the quarter, with a significant 17% increase observed between the first and second halves of the quarter, highlighting the severe demand-supply imbalance.
By the end of the quarter, SAP prices in the USA had reached USD 1600 per metric ton, CFR USGC, reflecting a robust and consistently positive pricing environment. This represents a marked increase from the previous quarter, which saw a price shift of only 2%, underscoring the escalating market sentiment and reinforcing a bullish outlook for SAP in North America. This dramatic rise in prices emphasizes the strength of the market forces at play and the significant impact of supply and demand dynamics on SAP pricing.
APAC
In the second quarter of 2024, the Superabsorbent Polymer (SAP) market in the APAC region has experienced a significant surge in pricing, driven by several pivotal factors. The sharp increase in SAP prices can be attributed to a substantial rise in demand from both the agricultural and pharmaceutical industries. Additionally, supply constraints, amplified by logistical challenges and limited inventory levels, have further intensified the upward pressure on prices. Market participants were recorded to have been engaged in vigorous trading activity, strategically adjusting their inventories to cope with fluctuating market conditions, which has further fuelled the bullish market sentiment. Rising energy costs have also contributed to this trend by increasing operational expenses, leading to higher SAP price offers. South Korea has seen the most pronounced price changes within the SAP market this quarter. The market dynamics have been marked by a consistent upward trend, driven largely by heightened demand from the personal care sector, especially for disposable diapers and adult incontinence products. Seasonal factors are also at play, with anticipated increases in construction activities boosting demand across various sectors. The rising prices of key feedstocks, such as Acrylic Acid, coupled with escalating energy costs, have reinforced the bullish outlook for SAP prices. Compared to the previous quarter, SAP prices have risen by 1%, with a notable 3% increase observed between the first and second halves of the quarter, reflecting the ongoing imbalances between demand and supply. Supply chains have been further strained by disruptions in port operations due to dense fog and partial plant shutdowns, adding to the positive pricing environment. As the quarter concludes, SAP prices in South Korea have reached USD 1280 per metric ton, FOB Busan. This price point underscores the robust demand and constrained supply conditions that have characterized the market throughout the quarter, highlighting a period of significant price escalation driven by a complex interplay of demand, supply disruptions, and rising costs.
Europe
In the second quarter of 2024, the European Superabsorbent Polymer (SAP) market has predominantly exhibited a bullish trend, driven largely by increased demand from agricultural and personal care sectors. The surge in demand is attributed to the current planting season for summer and winter crops, as well as the peak summer season, which has spurred heightened activity in the personal care sector, especially in June. However, demand from the construction sector remains weak, dampening the overall impact on SAP prices.
Consumption patterns for SAP have been strong, with significant inventory accumulation further tightening supply. Unfortunately, logistical challenges have compounded the situation. Floods in May 2024 affecting the Danube, Elbe, and Rhine rivers, along with strikes at ports and disruptions in rail networks, have severely hampered the movement of SAP. These issues have extended delivery times, adding to the supply constraints.
Additionally, the European Central Bank's decision to lower interest rates has positively impacted transactional activity among local buyers, contributing to a favourable demand outlook. Despite these positive factors, the overall rise in SAP prices has been relatively steady. This stability can be attributed to the ongoing subdued demand from the construction sector, which has prevented more substantial price increases. The construction industry continues to face challenges such as project cancellations, delays in permit approvals, and historically low performance in residential construction. The decline in foreign investment sentiment has further exacerbated the situation, resulting in improved availability of subcontractors but a generally pessimistic outlook on purchasing activities for construction materials. In summary, while the European SAP market benefits from strong demand in agriculture and personal care, the persistent weak demand in construction and ongoing logistical disruptions have kept SAP price increases in check, leading to a cautiously optimistic market environment.
For the Quarter Ending March 2024
North America
The North American Super Absorbent Polymer (SAP) market in Q1 2024 was characterized by significant price shifts, ending March with a downward adjustment to USD 1360 per MT on CFR – USGC basis. Initially, the market responded to an uptick in Asian pricing pressures, with an 8.1% price increase in January.
However, despite positive consumer sentiment in the US suggesting increased spending capacity, the market could not sustain the upward momentum. By February, the market recalibrated due to a decrease in prices from major exporters like South Korea and China, alongside subdued domestic spending following a weaker-than-expected retail performance and unexpected rise in inflation. These conditions led to a 9.4% decrease in SAP prices, with consumer caution becoming apparent and traders reluctant to engage in fresh bidding.
March saw a further 6.2% contraction in prices amidst a complex landscape of high inventories from Asia and a tepid Manufacturing PMI in the US, indicating a slow pace of production activity. Despite a robust manufacturing production rate hitting a 22-month high and an uptick in job creation, the US SAP market faced a confluence of high supply levels and stabilizing demand, especially in the Health and Hygiene sector. As the quarter closed, the market reflected a cautious approach from traders anticipating an increase in demand in the upcoming quarter, potentially due to seasonal factors.
APAC
The APAC Super Absorbent Polymer (SAP) market experienced a dynamic first quarter in 2024, with prices initially rising in January but ultimately descending to USD 1160 per MT on FOB – Qingdao basis in March. The early increase bucked expectations, given the decline in key feedstock costs, indicating strong downstream demand, particularly from export markets, which had contributed to the brief uptick. However, the landscape shifted with China's producer prices continuing their months-long contraction, indicative of broader economic headwinds. Despite modest improvements, the sustained reduction in production costs reflected deflationary pressures and a slowing economy, which weighed on SAP prices. This effect was mirrored in a tempered demand within China's agriculture and construction sectors, along with moderate demand in the health and hygiene markets, dampening SAP consumption. The trend reversed dramatically in February with a steep 13.7% drop in SAP prices, and a further decline in March, driven by an oversupply situation exacerbated by high inventories and a softer feedstock market. Sanyo Chemical Industries' exit from the SAP business in China also highlighted the competitive challenges within the region. By March's end, despite rising costs for raw materials like acrylic acid, the SAP market in China grappled with excess supply and muted demand from key importers, leading to strategic inventory management by suppliers.
Europe
The European Superabsorbent Polymer (SAP) market in Q1 2024 experienced bullish price fluctuations, culminating in March 2024. The year began with the market responding to rising costs in key Asia – Pacific markets, which led to an initial surge in SAP prices. By February, the market began to recalibrate in response to declining prices from major exporting countries, particularly South Korea and China. This change, coupled with tempered domestic consumption and a surprise uptick in inflation, precipitated drop in SAP prices. The apparent caution among European consumers led to a more measured approach in the market, with trading activity cooling. In March, prices saw an additional decline, reflecting a scenario of high inventory levels from Asia and subdued production activities. As the quarter ended, the European SAP market showed a cautious stance, with traders expecting a potential upswing in demand in the coming months, likely driven by seasonal industry demands and agricultural applications.
For the Quarter Ending December 2023
North America
At the end of 4th Quarter 2023 Super Absorbent Polymer (SAP) witnessed surge in prices in the United States can be traced back to heightened pricing strategies implemented by major producers in the Asian market, notably South Korea and China. This upward trend in SAP prices has been further exacerbated by an increase in freight charges across the Asia Pacific region, as reported by the Xeneta Shipping index.
The simultaneous rise in both SAP prices and freight charges during the current month indicates a confluence of factors influencing the overall cost structure. The pricing decisions made by key producers in Asia have a direct impact on SAP prices in the United States, given the interconnected nature of the global supply chain. The increase in freight charges adds an additional layer of cost to the transportation of SAP from Asian producers to the U.S. market.
This scenario points to the intricate relationship between international trade dynamics, production costs, and the final pricing of SAP in the United States. As the market navigates these challenges, stakeholders will closely monitor these contributing factors to gain insights into the future trajectory of SAP prices in the U.S. market. At the end of this quarter the price of the SAP concluded at 1480 CFR-USGC marking an incline of 1.36%.
APAC
In the concluding quarter of 2023, the price of Superabsorbent Polymer experienced a noticeable decrease, primarily attributed to a decline in the price of its major feedstock, Acrylic Acid, in the market. This downward trend in pricing indicates ample inventories among suppliers and subdued demand from core sectors. The supply of Superabsorbent Polymer in the APAC region, particularly China, remains at elevated levels. The feedstock market's descending momentum has led manufacturers to accumulate substantial inventories, ensuring they are well-stocked to meet demands from importing countries such as India and the US. The manufacturing Purchasing Managers' Index (PMI) also witnessed an upswing, reflecting an overall increase in production from industrial sectors. However, the demand for Superabsorbent Polymer in China is currently subdued, with slow demand observed from major consumers such as manufacturers of diapers and sanitary pads, which collectively constitute more than 70% of the overall market. Immediate demands from major importing countries like India and the US have also witnessed a slowdown. As of this quarter, the price of Superabsorbent Polymer concluded at 1305 USD/MT FOB-Qingdao, reflecting a decline of 1.13%.
Europe
In the European market, the Superabsorbent Polymer (SAP) sector witnessed a significant price decline in the fourth quarter of 2023, primarily influenced by a notable reduction in the cost of its primary feedstock, Acrylic Acid. This downward trend indicates a surplus of inventories among suppliers and a relative lack of demand from key industries. The supply of SAP in Europe remains abundant, with manufacturers accumulating substantial inventories to meet potential future demands. The declining prices align with the overall economic scenario, where various industrial sectors are grappling with challenges, leading to a decrease in production and consumption. While the manufacturing Purchasing Managers' Index (PMI) in Europe has displayed robust figures, the downward momentum in feedstock costs has allowed suppliers to maintain healthy inventories and pass on the cost benefits to consumers. The demand for SAP in Europe is experiencing a slowdown, reflecting the broader economic conditions. Major consumers, including hygiene product manufacturers and other industries reliant on SAP, are not exhibiting immediate or significant demand. The price decline in Europe marks a response to the market dynamics, signaling a period of surplus supply and subdued demand in the Superabsorbent Polymer sector.
For the Quarter Ending September 2023
North America
During the Q3 ending on September 2023, the prices of Superabsorbent polymer declined and reached USD 1670/MT (CFR-USGC) due to the sufficient stocks in the storage units and declined demand from the downstream market, resulting in a reduced production rate, which led to decreased trading activities. Due to the decreased prices of the commodity, the suppliers were forced to provide discounts on bulk purchases to clear out the inventories for the fresh stocks. However, in August 2023, the price trend elevated which was attributed to an increase in demand from downstream sectors, particularly Agriculture and adult incontinence-producing industries. Consequently, traders have shown a keen interest in procuring large inventories at lower prices to maximize their profit margins in the seasonal market. This heightened demand and strategic purchasing have kept market sentiments positive and led to an increase in the market value of the product over the month. The Superabsorbent Polymer market in the region has been impacted by insufficient supply, as firms are experiencing lower stocks.
APAC
In the Chinese market, the price trend of Superabsorbent polymer declined in the Q3 ending on September 2023 at USD 1550/MT (FOB-Qingdao). The prices of the commodity followed a declining trend except in August 2023, where the prices of the commodity were monitored to be increasing. The combination of insufficient inventories and increased consumption from the downstream industries like disposable diapers and adult incontinence pad-producing industries contributed to this upward trend. The market dynamics shifted as supply constraints led to heightened demand, pushing prices higher. Furthermore, the rise in energy prices and feedstock acrylic acid also played a crucial role in raising the overall production cost. Other than August 2023, the declining trend was followed due to the high inventory levels in the storage units and lower demand from the downstream ventures, which led to a decline in the production cost, decreasing the price trend of the commodity. The suppliers declined the offers and bids to enhance their profit margins; instead, they provided discounts on the bulk purchases by the buyers.
Europe
The market prices of Superabsorbent Polymer declined in the 3rd quarter, ending on September 2023. Due to the weak market situation, the consumption of the existing inventories in the storage units decreased. Due to the adequate stocks in the storage units, the production rate of the commodity decreased, which made the suppliers decline their offers and bids to enhance their profit margins and to provide discounts on bulk purchases to the buyers. The demand for the product from the downstream agrochemical enterprise was low, which was compensated by the existing inventories in the storage units with no need to restock the commodity. Furthermore, the drop in the inflation rate in Europe has also contributed to the decreased prices of the product. In terms of the upstream market, the prices of Acrylic Acid were recorded to be at the lower end, providing cost support to the Superabsorbent polymer. Since the demand for the commodity was low, the trading rates declined as well due to the sufficient stocks in the storage units.
For the Quarter Ending June 2023
North America
According to new findings released by ChemAnalyst's market team, the price of superabsorbent polymer or 'SAP' in the U.S. market during Q2 2023 decreased compared to earlier projections. Specifically, our records show that in June, the standard price stood between USD1850-USD1950 CFR USGC; however, the actual number may vary considering different pricing platforms among diverse traders active within international boundaries. Our investigative analyses reveal that construction firms in the U.S. faced major losses in their operational income. They suffered severe revenue drops, which resulted in lower total sales. Ultimately, their net profit margin shrank considerably, reflecting market conditions adversely affecting their shareholders. Moreover, due to the turbulence caused by economic uncertainty in various countries across Europe, several key end applications in the U.S. market, mainly paint and coating applications, reported falling prices over recent weeks. The Purchasing Managers Index (PMI), an important indicator of market health, recorded a 48.4% contraction. Despite facing stiff competition in terms of higher product prices from rival sellers in neighboring parts of Asia-Pacific and Middle East Gulf Cooperation Council (GCC), the U.S. segment has shown signs of recovery, thanks in part to rising crude oil values and the appreciation of the U.S. dollar since mid-Q2 against main global currencies. Overall, our examinations point toward a somewhat volatile environment going forward as far as the demand picture is concerned globally.
Asia
Following research conducted by ChemAnalyst Team, we can confirm that the prices of SAP during the second quarter of 2023 dropped significantly in the Asian market, with prices currently standing at USD 1540/ton FOB Busan. We found evidence suggesting that the situation surrounding the China-South Korea tech trade market took a downturn last month, leading to a steep decline in shipment volumes from South Korea to China. Contrary to expectation, demand levels did not rise as anticipated following previous forecasts indicating increasing demand potential. As a result of this shift, demand fell sharply by approximately 35.7% year on year due to the waning interest among Chinese consumers resulting from moderate economic growth. Nevertheless, although freight expenses related to the Southeast Asian – Northeast Asian – North America lanes were subject to mild declines of roughly 1%, other regions like the transpacific lane witnessed a moderate decline of around 2%. These alterations have had little effect on the aggregate worthiness of products connected with the semiconductor sector. By contrast, in Southern Korea, production costs rose unexpectedly, creating added risk to clients who purchase the commodity in bulk.
Europe
During Q2 of 2023, SAP experienced significant price drops within Europe. Despite this reduction in value, there was still a decline in overall demand, which led to less-than-average inventory turnover. Additionally, purchasing power remains relatively stagnant without any notable increase. Manufacturers have attempted to offset these issues through the expanded use of factory gates (i.e., greater access to supplier goods), but these attempts appear ineffective based on recent order rates analysis. Sales figures remain largely flat as buyers continue to hold out hope that business performance might improve in their favor by next year despite overall market negativity towards such expectations. Lastly, manufacturer optimism has decreased significantly recently, which could indicate some level of concern for future profits given continued investments into expanding market reach. The inventory was elevating in the European market due to lower utilization of SAP from the downstream sanitary industries marketplace, as per reported by traders in the region, and the stock of feed Sodium Polyacrylate also increased amongst the merchants, as reported.
For the Quarter Ending March 2023
North America
The market value of Superabsorbent Polymer de-escalated in the North American market with costs at USD 2682/ton CFR USGC. The demand for downstream procurement was largely poor, inquiries were generally weak, and the performance was bad, with market conditions being stagnant and unhealthy. Recently, the market price of the raw material Propylene fell narrowly, and the cost support weakened. Operating rates declined with a pullback from the downstream drug delivery and personal care products in the region. Compared with the previous period, the demand side improved, but the recovery was slow. Acrylic acid market discussions focused primarily on stability, and they were moderate.
Asia
The market value of Superabsorbent Polymer depleted in the Asian market with costs at USD 1826/ton FOB Busan. The procurement of 2-Ethytlhexyl Acrylate from the downstream paints and coatings market declined, relieving pressure from the prices of the product. The inventories were observed to be rising due to lower consumption. The supply chain by the producer's side was moderate enough, resulting in elevating of the inventories of Super Absorbent Polymer in the South Korean market. Investors are pessimistic about the South Korean market seeing fewer sales by the distributors in the region as loss seemed to de-escalate, indicating that their anticipated earnings are slowing down historically.
Europe
The prices of Superabsorbent Polymer plummeted in the European market with a fall in marginal demand from downstream sanitary products in the region, as quoted by the traders in the regional market. The decreased demand from the personal hygiene segment globally is the main factor depleting the market expansion. The fall in demand from economies such as China and India is expected to weaken the Superabsorbent Polymer market. In comparison to the prior period, the feedstock Acrylic Acid's operating rate has fallen, and the market support has been modest in the region. The supply chain situation in China is moderate, with SF Holding up by 3.4% and freight charges plummeting in the region. The inventory level of SAP was rising as the supply was not getting consumed in the regional market.
For the Quarter Ending December 2022
North America
During Q4 of 2022, the market value of Superabsorbent Polymer plunged in the North American market with a fall in feedstock costs (Acrylic Acid) and a drop in consumption levels. The demand for downstream procurement was largely poor, inquiries were generally weak, the demand side's performance was sluggish, and the market mood was stagnant and weak. The downstream procurers were cautious and mostly accepted low-priced procurement, the market attitude was insufficient, and the feedstock Acrylic acid market was under pressure and declining, which impacted the cost pressure negatively. Higher inventory levels and decreasing consumption levels were observed in the regional market.
Asia
The prices of Superabsorbent Polymer plummeted in the Asian market during the fourth quarter of 2022, with the supply of SAP in the polymer market observed to be increasing due to acceptable product supply, although the downstream market was sluggish. The demand from the downstream fertilizers and herbicides industry weakened, affecting SAP prices in the Chinese market. In comparison to the prior period, Acrylic Acid's operating rate has fallen, but market support has been modest. The demand for downstream procurement was largely weak, inquiries were generally plunging, the demand side's performance was weak, and the market mood was stagnant to weak.
Europe
In the last quarter of 2022, the prices of Superabsorbent Polymer fluctuated with the limited cost support and favorable supply side. The market transaction has been limited as procurements took place on a needed basis, and the cautious wait-and-see attitude remained profound during the last quarter of 2022. The feedstock Acrylic Acid market has been sluggish due to limited demand from downstream industries, as witnessed in Q4. The demand from the downstream fertilizers and herbicides industry maintained stagnancy, further affecting SAP prices. The supply chains improved towards H2 of Q4 and were good enough, resulting in an abundance of Super Absorbent Polymers in the European market.
For the Quarter Ending September 2022
North America
In Q3, the prices of Superabsorbent Polymer fell in the US market during August, with prices ranging at USD 2660/ton CFR USGC. The cost and supply side had weak support, the market transaction was needed, and the cautious wait-and-see attitude was vital. The demand from the downstream fertilizers and herbicides industry weakened, affecting SAP prices. Prices fell as feedstocks decreased (Acrylic Acid), and consumption levels remained down. Higher inventory levels and decreasing consumption levels were observed in the regional market. The supply of shipments was abundant, which brought much traffic from and to the port.
Asia
The price of SAP fell in the Chinese market during Q3 2022 was witnessed ranging from USD 2290-2310/ton FOB Qingdao in August. Furthermore, demand for the product decreased from the downstream personal care segment, while import demand from the international market remained troubled due to domestic trade disturbances. In comparison to the prior period, feedstock Acrylic Acid's operating rate has fallen, but market support was modest. The downstream procurement was cautious and mostly low-cost procurement, the market attitude was insufficient, and the acrylic acid market was under pressure and declining, which were the primary factors.
Europe
During the third quarter of 2022, the prices of Superabsorbent Polymer decreased in the European market. The slowing demand in the international market perfectly captures the weak performance of the global automotive sector. As a result, POE imports have surged over the past several months, which has improved the dynamics of supply on the local market. Despite global inflation, Europe's automotive industry has thrived due to strong domestic demand for end products. Although demand fundamentals remain optimistic, supply dynamics have continued to cater to domestic consumption. The inventories were rising and were observed to be stockpiled by the traders and the suppliers.
For the Quarter Ending June 2022
North America
Superabsorbent Polymer market witnessed mixed fundamentals in the North American market. The material prices continued to rise gradually for most of the second quarter across the region. While the demand and supply fundamentals were stable, rising inflationary pressure had led the price of the SAP to follow an upward trajectory. Furthermore, the US market witnessed the circumstances of stagflation since the beginning of the first week of June, consequently compelling producers to raise the price of their materials. In addition, the rising energy cost has affected producers' input costs. Therefore, SAP prices in the US region continued to rise gradually during the second quarter of 2022.
Asia
In the Asian market, Superabsorbent Polymers witnessed close stability in the second quarter of 2022. Demand fundamentals of SAP in Asia were strong throughout the quarter, while supply dynamics suffered mixed sentiments in some countries. China was one of the Asian economies still reviving from rising cases of COVID that had affected the domestic supply of the material. However, most of the SAP production was to be stable in Q2 2022 other than China being the exception as its major provinces were under lockdown, hampered the domestic production of the product. Moreover, the declining costs of raw material Acrylic Acid in the region further stabilized the product's prices. Nevertheless, rising inflationary pressure did not let the circumstances favor the material producers.
Europe
Stable market fundamentals were observed across Europe for Superabsorbent Polymer. The demand-supply gap continued to be narrowed. In other words, the healthy demand for the material in the European market did not hover over the consistent supply of the SAP. However, the rising cost of energy in the region and the high feedstock prices coupled with global inflationary pressure compelled European producers to raise the Superabsorbent price of their materials. Hence, the domestic price trend of SAP was observed to be moving upwards. Moreover, Europe produces a major part of its domestic consumption; therefore, the rising freight cost did not affect as much as was anticipated. Nevertheless, the price of SAP witnessed a slight decline in the last month of Q2 after the cost of raw materials started moving downwards.
For the Quarter Ending March 2022
North America
High Raw material costs amid stable offtakes from the domestic market remained a concern for regional players during Q1 2022. Demand fundamentals for the product remained stable from the downstream consumer sector, while manufacturers heard battling with high raw material costs. It was observed that acrylic acid and Acrylates prices showcased a significant hike during this quarter, owing to soaring raw material costs under the influence of Russia Ukraine conflict. However, Super Absorbent polymer prices remained range-bound throughout the quarter, assessed at around USD 2710/MT during February in the USA.
Asia Pacific
Global market sentiments have been hurt due to the steep rise in prices of upstream crude, while manufacturers' margins squeezed consistently throughout the quarter. In China, a sudden surge in pandemic cases made a substantial negative impact on the domestic market, while demand fundamentals remained stable in the meantime. Despite the fact that, upstream acrylic acid prices declined by the end of the quarter under the influence of diminishing offtakes from the domestic market, Super Absorbent polymer prices remained buoyant due to trade disturbance. On the other hand, in India, SAP prices kept on rising throughout the quarter, owing to stable offtakes amidst rising raw material cost due to disturbance in China market. Meanwhile, BPCL announced start-up of SAP demonstration plant at its Kochi refinery. SAP prices assessed around USD 2310/MT and USD 2560/MT during February in China and India, respectively.
Europe
Russia Ukraine conflict remained a major concern for the European market throughout this quarter, as it has been injecting uncertainties all across the region. Major key players heard revising their offers in order to sustain their profitability, as the consumer inflation rate risen multiyear high in the region. Trade disturbance in Baltic Sea and Black Sea led to a steep rise in inflationary pressure on consumers, where diaper and tissue manufacturers heard revising their offers to protect profitability. Under the influence of cost inflation SAP price showcased increment of around 2%-3%, consequently, Essity AB which is one of the largest suppliers of tissue and diaper increased their prices during January 2022.
For the Quarter Ending December 2021
North America
Firm offtakes from the domestic market have led to a steep price escalation in price of several commodities including SAP in USA during this quarter. Several traders heard revising their offers to sustain their profitability, as they were receiving cargoes on a higher note from domestic manufacturers, meanwhile raw material Acrylic Acid has risen by 4% within the quarter. However, cheaper imports from Korea remained a major concern for key domestic players. Thus, an antidumping duty petition was filed by domestic manufacturers against imports from South Korea. As per domestic Key SAP producer, due to consistently rising raw material they were compelled to raise their offer, while these cheap imports are threat to their survival.
Asia
Under stable demand from the regional market, while witnessing issues during procurements has led to a steep rise in price of SAP across APAC region. Prolonged shortage of shipping containers has increased the prices of several commodities in APAC countries like India and China. Meanwhile, the demand for SAP from downstream personal hygiene segment remained stable across domestic market for both countries. Furthermore, due to hike in raw material cost, most of the acrylates have been increased with a significant margin across regional market. Meanwhile, global inflationary pressure induced due to high freight and crude oil cost has marked its effect on several commodities including SAP. Thus, SAP prices heard hovering around USD 2077/MT during November in India.
Europe
European market has witnessed stable to firm demand for Superabsorbent Polymer during this period. Traders marked ample queries for SAP from regional niche buyers, while unforeseen hike in energy cost dented the overall margin of key manufacturers. However, producer implemented temporary surcharge to protect themselves from diminishing profit margin. Meanwhile, high energy cost not only affected the prices of production cost, but also increased the price of raw materials including Acrylic Acid in the regional market. Conclusively, European market witnessed consistent hike in price of several acrylates during Q4 2021, which also includes Superabsorbent polymers.
For the Quarter Ending September 2021
North America
The overall pricing outlook of Superabsorbent Polymer (SAP) showcased an upward trend in Q3 across the North American region. Strong demand was observed for SAP for diapers, feminine and hygiene products, industrial wipes, and other nonwoven materials. In the US, the supply of Acrylic Acid and Acrylate Esters has been limited for domestic buyers due to the shutdown of several plants in the aftermath of Hurricane Ida. Raw material shortages caused the prices to follow an upward trajectory and the demand from downstream sectors remained sufficient to support this hike.
Asia
The prices of Superabsorbent Polymer (SAP) observed a marginal increment during the 3rd quarter in the Asia Pacific region. In India, SAP prices witnessed a gradual surge in the past few months and reached USD 1697 per MT CFR JNPT in September. However, traders remained under stress during the quarter as demand for the product in the domestic market did not witness considerable improvement. As per market player, tumbling values of Acrylic Acid coupled with slow recovery in its demand fundamentals could narrow the spread between the Superabsorbent Polymer and its feedstock prices in the next quarter.
Europe
Superabsorbent Polymer prices rose significantly in Q3 2021 on the back of the high acrylic acid pricing and surging energy cost in the European region. Considerable improvement in the consumption of SAP from the downstream diapers and other FMCG goods was observed by the players as the quarter headed towards its closure. Disrupted supply chains, limited feedstock availability, and soaring freight charges further exacerbated the fluctuations in the SAP pricing trend across the region. The market turned optimistic after Evonik Industries AG carved out its former Baby Care Business Line as an independent company. The new entity would be having its production sites in Krefeld, Rheinfelden and Marl in Germany; and Greensboro and Garyville in the USA and would be taken over by Evonik Superabsorber GmbH in Germany, and Evonik Superabsorber LLC in the USA.
For the Quarter Ending June 2021
North America
Supply shortage of upstream Propylene and Acrylic Acid increased the prices of downstream commodities in USA during Q2 2021. Despite of improvement in production activities across Gulf of USA, low inventory level of upstream chemicals led to a further rise in prices of downstream chemicals including Superabsorbent Polymers in USA. It was observed that the prices of end use products like sanitary pads and diapers kept on rising in USA, and prime reason behind this rise was Texas freeze of February. Meanwhile, the demand from end use segments remained sufficient to further support this price hike in USA.
Asia
Asia witnessed stable demand for SAP during this quarter, under ample stock availability. In Indian market, prices of SAP fluctuated marginally, while the demand remained stable to firm throughout the quarter. However, despite of high prices in other countries like USA, prices in India remained in a narrow range due to dull market sentiments. Traders had to sell their cargoes on a cheaper rate to regulate their inventories. Meanwhile, BPCL announced a 50 KTPA SAP plant in India, under the vision to reduce India’s import dependency for SAP. In addition, South Korean giant LG Chem revealed that they have got ISCC-Plus certification to produce 9 sustainable chemicals including SAP at its Yosu and Iksan facility.
Europe
SAP demand in Europe remained firm during this quarter, as being an essential commodity the demand for Super Absorbent Polymers from consumer usually remain stable in Europe. While prices also showcased buoyancy throughout the quarter, backed by several factors like transportation difficulties, lower feedstock availability and expensive imports of raw materials from other countries like USA. Meanwhile global inflation also played an important role in providing buoyancy to the prices across the region for SAP.
For the Quarter Ending March 2021
North America
Disruption across the US gulf region due to the freezing temperatures created a global shortage of feedstock chemicals, during this quarter. Several feedstock chemicals plants like Polyacrylamide remained idled due to unfavourable operating conditions. Besides, several upstream Acrylonitrile plants like INEOS and Celanese were compelled to declare a force majeure under this rare climate calamity. Due to the rise in prices of feedstock chemicals amidst firm demand from downstream diaper manufacturers, prices of SAP rose effectively and reached historic highs during the quarter.
Asia
The Asian market faced shortage of Superabsorbent Polymer (SAP) across the region due to lower domestic output and reduced imports frequencies. Due to the shortage of containers and record high freight cost prices of SAP observed consistent increments throughout the quarter. Since SAP is a majorly imported commodity in the Indian market, the high transportation cost directly affected the price of SAP in the country, which rose from CFR USD 1547.6 per MT (January 2021) to USD 1654.8 per MT (March 2021). In addition, Formosa plastics announced investment of more than USD 7.17 million on its Taiwan based plant to boost the production by 20 KTPA SAP.
Europe
Europe showcased firm demand from domestic diaper manufacturing sector, during Q1 2021. However, the supply remained insufficient to satisfy the overall demand, as traders were also looking forward to satisfying export demand to improve their margin. Meanwhile, BASF announced permanent closure of its Mannheim SAP plant in Germany due to unfavourable market conditions. In addition, they also announced to invest USD 30.2 million in Antwerp Belgium, to produce SAP.
For the Quarter Ending December 2020
North America
USA dominates the North American super absorbent polymers market in terms of demand. During the final quarter of 2020, the demand of upstream Acrylic Acid increased, which led to increase in Sodium Polyacrylate prices. In addition, the price of upstream Propylene witnessed sharp increase during this period, due to acute shortage of supply across the region. This shortage was led by the reduced functioning of refineries at several locations due to seasonal hurricanes hitting the gulf region. The demand from consumer durables segment was on rise along with recovery of domestic activities from the pandemic-induced slowdown.
Asia
The Asian SAP market outlook for Q4 2020 was shrouded with acute volatility due to upstream supply crunch. A leading SAP manufacturer in South Korea reported double digit decrease in its SAP sales during the fourth quarter owing to acute shortage of upstream materials. Scheduled turnaround at LG Chem’s Yeosu NCC plant significantly affected the feedstock availability in the region. Since SAP is majorly imported in India, the shortage of containers and soaring ocean freight directly affected the prices of SAP in the Indian markets. Due to increase in the shipping charges and upstream price pressure, the CFR JNPT price of SAP increased from USD 1603.2/tonne in October 2020 to USD 1680.2/tonne in December 2020.
Europe
The European SAP market seemed grappling with tight supply of raw materials during the 4th quarter including upstream Acrylic Acid. The overall demand for Acrylic Acid was strong during Q4 2020 but the supply was pressured due to shortage of upstream Propylene which seemed not to ease at least in the first half of 2021. A series of plant turnarounds exacerbated the product tightness. Pushed by a number of factors, price of SAP witnessed sharp increases between Nov. and Dec.
