Input cost pressure hitting the Super Absorbent Polymer (SAP) market globally
- 28-Apr-2022 8:42 AM
- Journalist: Rene Swann
Inflationary pressure has been affecting the global consumer market for a long time now, as the raw material cost has been on an uptrend since the start of the year. Demand fundamentals for consumer goods remained high throughout the first quarter, owing to consistent economic recovery. As per the latest assessment by ChemAnalyst, under the influence of rising inflation, Super Absorbent polymer prices have risen remarkably across the global market.
The past couple of years have been challenging for the global market, as the pandemic disrupted the global market fundamentals and injected numerous waves of uncertainties across the different downstream industries. Acrylates are one of those industries that have witnessed oscillating market dynamics, owing to shifting demand/supply fundamentals coupled with changing raw material costs. As per the ChemAnalyst data, Acrylates used as Super Absorbent Polymers are on a bullish run across the global market under the influence of different factors. Recently, a major Superabsorbent polymer manufacturer in Asia, Sumitomo chemicals, announced the increment of around USD 200/MT on its brand Aqua keep, which is a super absorbent polymer used in the manufacturing of personal care goods like diaper and sanitary pads, etc. This price revision was primarily driven by rising input cost pressure and prolonged bullishness in upstream crude oil value.
Recent events have further devastated the global optimism, as the Russia-Ukraine war has come to the point that it can disrupt all the supply chain activities in the European market. As per the latest insights, the looming threat of scarcity of natural gas in some major European economies like Germany, Poland, and Bulgaria is making traders and manufacturers anxious about future profitability. This threat has risen after Russia announced a supply cut for these nations due to the conflict in payment mechanism, as Russia wants all transactions in Russian currency (Ruble) only. In the meantime, the USA has currently been facing the worst spike in the price of Natural gas since 2008, exacerbating already high inflationary pressure on consumers in the domestic market.