Will the surge of propylene affect the paint and adhesive industry?

Acrylic acid is one of the key downstream products of propylene. The annual consumption of propylene accounts for about 4% of the total domestic propylene consumption. In the application field, the adhesive is currently the largest application field of acrylic acid, accounting for about 30%. Super absorbent resin (SAP) is the second largest application field of acrylic acid, accounting for about 25%. Paint is the third largest application area of acrylic acid, accounting for about 24%.

Propylene's surge is closely related to the downstream polypropylene.

The immediate downstream of crude oil is propylene, and the downstream of propylene is polypropylene. For a long time, because crude oil and polypropylene are both used as futures commodities, and they are strongly influenced by the market, the price transmission of propylene has not been clearly reflected. However, recently, affected by the international situation, many countries have introduced production reduction policies, which is favorable to the crude oil market and propelled the price of propylene.

The Acrylic Acid industry chain can be divided into upstream with oil, natural gas and propylene as raw materials. The midstream belongs to the acrylic and ester industry, and the downstream mainly includes acrylic ester, SAP, acrylic rubber, and high-performance materials. It is widely used in the three major links in the fields of coatings, adhesives, synthetic rubber, textile, chemical fiber, building materials and so on.

Will the surge of propylene affect the paint and adhesive industry?

As a key downstream application industry of acrylic emulsion / resin, the coatings and adhesives industry is closely related to the acrylic industry.

With the continuous changes in supply and demand, the focus of propylene prices will also change, and the market basically has no stable price stage. The raw material propylene has skyrocketed, and downstream end users are under pressure. They are all resistant to high-priced raw materials and have a wait-and-see atmosphere. It is expected that in the short term, industry companies should pay more attention to market news guidance. Where the market will Lead the upstream and downstream industries of coatings and adhesives, let us wait and see.

From the perspective of global propylene production capacity expansion, China's propylene production has experienced many years of capacity expansion. It has surpassed the United States since 2012 and has become the world's largest propylene production capacity country (35 million tons). In 2018, China's propylene production capacity maintained the first place, reaching 35.6 million tons per year, exceeding the US production capacity of about 15 million tons, while South Korea, Saudi Arabia, and India were close behind, but they were all less than 10 million tons per year.

At present, China's propylene production is about 28.4 million tons / year, imports are about 3.1 million tons / year, and consumption is about 31.5 million tons / year. With the continuous growth of downstream coatings, adhesives, and super absorbent resin (SAP) applications, it is expected that acrylic acid will continue to grow steadily in the future.

Acrylic acid is one of the key downstream products of propylene. The annual consumption of propylene accounts for about 4% of the total domestic propylene consumption. Acrylic acid is mainly used to synthesize various acrylates, and secondly to produce acrylate. Common acrylates mainly include methyl acrylate (MA), ethyl acrylate (EA), butyl acrylate (BA) and 2-ethylhexyl acrylate (2-EHA). Acrylic esters are mainly used as polymerized monomers in the production of coatings and adhesives, and are also widely used in inks, textiles, plastic additives and other fields.

The acrylic acid industry is a typical cyclic product industry that is affected by the capacity delivery cycle. In recent years, the overall acrylic acid production capacity has tended to increase.

Acrylic downstream products include acrylic esters, super absorbent resin (SAP), acrylic rubber, high damping materials, other acrylic high-performance materials, etc., widely used in coatings, adhesives, textiles, chemical fibers, synthetic rubber, pharmaceuticals, leather, Building materials, oilfield mining and other fields.

Globally, about 51% of acrylic acid is used to produce acrylates, and 33% is used to produce super absorbent resins (SAP). The consumption field of acrylic acid in China is relatively simple. More than 80% of acrylic acid is directly used in the production of acrylates, while other downstream industries, including super absorbent resin (SAP), account for a relatively small amount.

In the application field, adhesives are currently the first largest application area of acrylic acid, accounting for about 30%; super absorbent resin (SAP) is the second largest application field of acrylic acid, accounting for about 25%; paint is the third largest application field of acrylic acid , Accounting for about 24%.