product focus

Prices

ACRYLIC ACID
GLOBAL DEMAND
2004 total: 2.4 billion lbs

U.S.: 85 cts-90 cts/lb del, fourth-quarter contracts EUROPE: 1,600-1,800/m.t., del fourth quar-

ter, contract

ASIA/PACIFIC: $1,800-$2,000/m.t. c&f, spot

Outlook

Celanese Clear Lake, TX American Acryl1 Pasadena, TX Dow Chemical Taft, LA Mexico Celanese Cangrejera

360 120 110 65

U.S. demand growth for acrylic acid is expected to slow from about 5%/year in the past three years, to 3%-4%/year during the next ve years, says Jamie Lacson, consultant at SRI Consulting (Menlo Park, CA). The substitution of conventional diapers by thinner diapers with high superabsorbent polymers (SAP) content is almost complete, pulling back demand growth, Lacson says. Demand from SAP will continue to grow, but at a more modest rate of 4%-5%/year, compared to previous growth rates as high as 7%/year, he says. Demand for acrylic acid for acrylate esters production is forecast to grow at just 2%/ year in the U.S., SRI says. The U.S. market is balanced, and new capacity is unlikely to be needed over the next ve years, Lacson says. BASF idled a 68,000-m.t./year plant at Freeport, TX in January, citing weak market conditions (CW, Oct. 22, 2003, p. 6). BASF has also postponed a joint venture acrylic acid project at Guaratinguet, Brazil with Petrobras from 2006 to an undetermined date (CW, June 18, 2003, p. 8). Western Europe acrylic acid demand growth is forecast to rise by 2.2%/year the next ve years, SRI says. Demand in China is forecast to grow at 15%/year through 2009 to about 600,000 m.t., it says. China imported more than one-third of its acrylic acid requirements in 2003, Lacson says. BASF-YPC Co., a jv between BASF and Sinopec subsidiary Yangzi Petrochemical, will start up a 160,000-m.t./ year plant at Nanjing, China in the rst half of 2005. Formosa Plastics is planning a 160,000m.t./year plant at Ningbo, China but has not set a completion date for the project (CW, May 21/28, 2003, p. 17). Dow Chemical is considering an acrylic acid plant at an undetermined site in China as part of a major petrochemical complex (CW, Sept. 8, p. 13). Dow bought Celaneses acrylic acid and acrylates business last year (CW, Sept. 17, 2003, p. 9). Capacity additions in Asia over the next two years should, if implemented, bring more than enough capacity to meet demand growth, says Doug May, global business director/acrylates at Dow. Higher-than-expected demand, production glitches, and cutbacks in the industry have tight54

Other 17% Acrylate esters 52%

SOUTH AMERICA
Brazil Oxiquimica Triunfo 50

Superabsorbent polymers 31%

EUROPE
Belgium BASF Antwerp France Arkema Carling Germany BASF Ludwigshafen StoHaas2 Marl BSL 3 Bohlen 160 240 310 200 80 55

Source: SRI Consulting (Menlo Park, CA).

ened the acrylic acid market in the past year, producers say. The supply shortage is expected to continue through at least the rst half of 2005, May says. Tight supply has driven up prices, helping to oset higher costs of feedstocks, energy, and transportation, and to improve margins from unsustainably low levels, he says. Margins are expected to remain under pressure, however, due to expected high costs of energy and feedstocks next year, he adds. Dow is also evaluating possible process improvements at some of its facilities in light of the supply shortage, May says. The company has several debottlenecking projects currently underway to increase its production at its existing acrylates plants, he says. BASF says it is considering the restart of its Freeport plant. The company says the volumes from the restart will be used to balance its global supply in 2005. It is running its remaining units at full capacity.

EASTERN EUROPE SOUTH AFRICA

Sasol Sasolburg 80

ASIA/PACIFIC
China BASF-YPC Nanjing4 Others Indonesia Nisshoku Tripolyta Acrylindo5 Cilegon Japan Nippon Shokubai Himeji Mitsubishi Chemical Yokkaichi Others Malaysia BASF-Petronas Kuantan Singapore Singapore Acrylic 6 Pulau Sakra South Korea LG Chemical Naju Taiwan Formosa Plastics Mailiao Linyuan 160 97 60 220 110 158 160 60 95 90 55

Technology

Most plants produce acrylic acid via a twostep oxidation process in which propylene is oxidized to make acrylic acid. The process also generates acrolein, which can be further oxidized at high temperatures to form more acrylic acid. New plants will likely produce acrylic acid through one-step propylene oxidation, Lacson says.

Producers

(in thousands of m.t./year)

NORTH AMERICA
U.S. Rohm and Haas Deer Park, TX BASF Freeport, TX 650 500

1) 50-50 jv between Nippon Shokubai and Arkema. 2) Jv between Rohm and Haas and Degussa 3) 50-50 jv between Celanese and BSL 4) Due online in 2005. 5) Tripolyta has sold its 45% stake to Japanese jv partners Nippon Shokubai and Tomen Corp. 6) Jv of Nippon Shokubai, Toagosei, and Sumitomo Chemical. Source: SRI Consulting (Menlo Park, CA).

Chemical Week, December 1/8, 2004

www.chemweek.com