Robust Demand of Superabsorbent Polymer Coupled with Rising Acrylate Monomer Prices Led to its Price Hike in India

Winter season usually injects buoyancy to the prices of several commodities in global market, one of the major commodities that follows these fundamentals is Superabsorbent Polymer (SAP). As per the ChemAnalyst sources, Superabsorbent Polymer prices have increased constructively during past few months across Indian market on the back of robust offtakes and rising input cost.

A reliable market source revealed that, current intakes from the domestic downstream users have been enhanced, as the demand for diapers and sanitary napkins have improved during winter season. As a seasonal phenomenon, consumption rate of Superabsorbent Polymers increases during the month of December onwards and remains high till the end of March, which also affects the pricing dynamics of the product in Indian domestic market. However, rising consumption rate is not the only factor behind these price hikes, rising input cost also played a key role in defining this price trajectory for the product in India. Acrylate monomer prices have been rising since a long time due to unprecedented surge in its production cost. Recent global events like high energy cost in Europe, rising crude oil value, cloud high freight prices and production cuts in China has shaken the global market dynamics. These global factors have also raised concerns for steep rise in raw material cost, which eventually leading a high rate of inflation in global market.

As per ChemAnalyst analysis, rising raw material cost is not going to show any significant decline any time soon in the global market. However, some commodities have started showing some ease after witnessing extraordinary price hike during previous months. Furthermore, demand fundamentals for Superabsorbent Polymer in India are also anticipated to remain high till the end of winter season, which will also help prices to remain elevated for further period in the country.