Super Absorbent Polymer Loses Momentum in the Asian Market in July 2022
- 28-Jul-2022 4:10 PM
- Journalist: Nina Jiang
The global economic slowdown and easing raw material costs have started affecting the pricing dynamics of several downstream derivatives in the Asian market. As per the latest insights, Super Absorbent Polymer prices have declined in major Asian economies, including India and China, during July 2022.
The Chinese market has been struggling to reap many benefits in economic activities since it has recovered from pandemic-related restrictions in the country. As a result, Acrylates prices started heading towards the bottom during July 2022, which also included Super Absorbent polymers in the market. As per the data, Acrylic Acid prices in China have plunged effectively during the past few weeks, consequently affecting the pricing dynamics of downstream derivatives.
Meanwhile, India has also witnessed a similar market sentiment, even though demand dynamics for the product maintained overall stability throughout this timeframe. In the domestic market, a decline of around 1.7% has been observed during July 2022. Additionally, since the import prices have shrunken in India due to regional price falls, traders have also started offering discounts on spot purchases.
The rising raw material cost has been a significant concern for global key players, as it was responsible for the decline in profitability of downstream users, like participants of the personal care industry. Thus, this recent fall has opportune them to regain their margins without revising prices for end users.
As per ChemAnalyst, "SAP prices may fall again in the coming month on the back of anticipatedly low prices of upstream chemicals. However, this pricing trend may not remain persistent for the next two months, as the prolonged inflationary pressure compels key players to make optimistic price revisions. Additionally, China's market struggle to gain momentum may end up by September, as the arrival festivities in India might drive the overall growth of India and China."