The price of propylene skyrocket affect the industry of adhesives and coatings

Acrylic acid is one of the downstream key products of propylene. The annual consumption of propylene accounts for about 4% of the total consumption of propylene in China. In the application field, adhesive is the largest application field of acrylic acid, accounting for about 30%; sap is the second largest application field of acrylic acid, accounting for about 25%; coating is the third largest application field of acrylic acid, accounting for about 24%.

Recently, the price of propylene has risen dramatically, and it has become a hot spot in the domestic chemical industry, coating online coatingol.com. On April 12, the market price of propylene in Shandong continued to soar. Once again, the daily price rise was generally over 1000 CNY/ton, an increase of 35.02%. Some enterprises even soared 5000 CNY/ton, an increase of nearly 100%. The craziness of propylene is closely related to the drive of downstream polypropylene.

The direct downstream of crude oil is propylene, while the downstream of propylene is polypropylene. For a long time, as crude oil and polypropylene are both futures commodities, the price transmission of propylene has not been clearly reflected due to the strong market attention and influence. But recently, affected by the international situation, many countries have introduced production reduction policies to improve the crude oil market and increase the price of propylene.

Propylene market is so crazy, will it affect the coating and adhesive industry? It can be seen from the above figure that Acrylic Acid is at the core of the whole industrial chain, and a series of compounds can be derived from it through chemical process, thus forming a large series of acrylic acid products. Therefore, the acrylic acid industry chain can be divided into three parts: upstream with oil, natural gas and propylene as raw materials, midstream with acrylic acid and ester industry, downstream mainly including acrylic acid, sap, acrylic rubber, high-performance materials, etc., which are widely used in coating, adhesive, synthetic rubber, textile, chemical fiber, building materials and other fields. The coatings and adhesives industry as the downstream key application industry of acrylic emulsion / resin is closely related to the propylene industry. With the continuous change of supply and demand, the price center of propylene will also change, and the market will be basically unstable. Raw material propylene skyrocketed, and downstream end users were under pressure. They were all resistant to high price raw materials, with a strong wait-and-see atmosphere. It is expected that in the short term, industry enterprises should pay more attention to market news guidance. Where the market will Lead the upstream and downstream industries of coatings and adhesives, let's wait and see. From the perspective of global propylene capacity expansion trend, China's propylene has experienced many years of capacity expansion. Since 2012, it has surpassed the United States and become the world's largest propylene capacity country (35 million tons), and then continues to expand.

In 2018, China's propylene production capacity remained the first, reaching 35.6 million tons / year, exceeding the second capacity of the United States by about 15 million tons, followed by South Korea, Saudi Arabia and India, but less than 10 million tons / year. At present, China's propylene production is about 28.4 million tons / year, import is about 3.1 million tons / year, and consumption is about 31.5 million tons / year. With the continuous growth of downstream coating, adhesive and super absorbent resin (SAP) applications, acrylic acid is expected to maintain a steady growth in the future. According to the data of business agency, the reference price of propylene on April 13 was 9445.55, and it has increased 82.183% in 12 days since 2020 / 4 / 2. Midstream acrylic acid is one of the downstream key products of propylene, and the annual consumption of propylene accounts for about 4% of the total consumption of propylene in China. Acrylic acid is mainly used in the synthesis of various acrylate, followed by the production of acrylate. General acrylate mainly includes methyl acrylate (MA), ethyl acrylate (EA), butyl acrylate (BA) and 2-ethylhexyl acrylate (2-EHA). Acrylates are mainly used as polymerized monomers to produce coatings and adhesives, and also widely used in ink, textile, plastic additives and other fields. Acrylic industry is a typical cyclical industry affected by the production capacity delivery cycle. In recent years, the capacity of acrylic acid tends to increase as a whole. On April 13, the acrylic acid commodity index was 31.59, up 1.34 points from the previous day, down 68.41% from the cycle's highest point of 100.00 (2011-09-01), and up 28.57% from the lowest point of 24.57 on November 26, 2015. On April 13, the stock price of Shenyang Chemical Co., Ltd., one of the acrylic plates, once hit the limit. Satellite petrochemical, shuangxiang shares and other stocks all rose to varying degrees. Downstream - Application of acrylate and SAP downstream products of acrylic acid include acrylate, super absorbent resin (SAP), acrylic rubber, high damping materials, other acrylic high-performance materials, etc., which are widely used in coating, adhesive, textile, chemical fiber, synthetic rubber, pharmaceutical, leather, building materials, oil field exploitation and other fields.

Globally, about 51% of acrylic acid is used to produce acrylate and 33% is used to produce super absorbent resin (SAP). The consumption area of acrylic acid in China is relatively single, more than 80% of acrylic acid is directly used to produce acrylic acid, while other downstream industries, including SAP, account for less. In the application field, adhesive is the largest application field of acrylic acid, accounting for about 30%; sap is the second largest application field of acrylic acid, accounting for about 25%; coating is the third largest application field of acrylic acid, accounting for about 24%. This column is exclusive to VIP members. Please check the details after VIP members log in. Click I log in to become a VIP member immediately. This column is exclusive to VIP members. Please check the details after the VIP members log in. Click me to log in and become a VIP member tag: raw materials, accessories and equipment, today's headlines, industry information, market review, painting, ink, adhesive, paint additives