Acrylic acid is the main derivative of acrylic acid, accounting for more than half of the world's total demand. The crude acrylic acid is used almost exclusively for the manufacture of acrylates and other derivatives used in pigments, paper, textiles, adhesives, specialty coatings and inks. Distilled acrylic acid is mainly used for superabsorbent polymer (SAP), its largest use is disposable baby diapers, detergent polymer for washing powder formulations, and small amounts for the production of thickeners, dispersants, and rheology control agents. Polyacrylates are used. At present, the world's acrylic acid production capacity is about 3.5 million tons/year, and the main manufacturers are BASF, Belgium (with a production capacity of 160,000 tons/year), BASF, Germany (with a production capacity of 305,000 tons/year), and BASF, USA. The company (with a production capacity of 160,000 tons/year), BASF National Petroleum Company (with a production capacity of 160,000 tons/year), Rohs-Haas Company (with a production capacity of 580,000 tons/year), and Germany Dow Chemical Company (The production capacity is 80,000 tons/year), the US Dow Chemical Company (the production capacity is 430,000 tons/year), the Japan Catalystization Company (the production capacity is 315,000 tons/year), and the French Atofina company (production capacity 240,000 tons/year), Germany StoHaas monomer company (capacity 200,000 tons/year), China Taiwan Formosa Plastics Group Corporation (capacity 150,000 tons/year), South Korea LG Chemical Company (capacity 12 10,000 tons/year), American Acrylic Corporation (with a production capacity of 120,000 tons/year) and Japan's Mitsubishi Chemical Corporation (with a production capacity of 110,000 tons/year). The European acrylic market has entered a tight supply period. StoHaas also made a similar statement at the end of the month after Atofina announced in early April that it could not be fulfilled because of force majeure. Industry members said that the tight supply situation will extend throughout the second quarter and extend to the second half of the year. Demand will be extremely strong. The Asian market is thriving, resulting in far less expensive raw materials entering Europe. As the profitability is still very poor and the capability continues to be surplus, the industry consolidation continues. In early 2004, BASF idled its 70,000-ton/year production facility in Freeport, USA. In February, Dow Chemical completed the acquisition of Celanese Acrylic Assets, raising its ranking from No. 6 to No. 6 in the industry. Rank 3, and translate into a fully integrated manufacturer. The transaction includes the United States's Clearlake factory and Celanese reserves the Mexican plant, but will supply acrylates to Dao according to the incoming processing agreement. In April, Sasol/Mitsubishi Chemical began exporting from its new plant in South Africa. Euro Acrylic's contract price in the second quarter increased by 100-300 Euros/ton, reaching the delivery price of West European Terminals of 1285-1435 Euros/ton. The spot price is 1260-1280 euros/ton. Since mid-2003, producers have been trying to increase contract prices, but so far most of the efforts have not been successful. In 2004, gross profit continued to deteriorate due to the rapid rise in propylene prices. It is expected that the future demand for acrylic acid in Europe will increase slightly more than the growth rate of GDP, and Asia's growth will be the strongest. In particular, China is expected to increase its annual growth rate of demand to 8%-10%. Global supply of acrylic acid is expected to remain tight until the third quarter of 2005, BASF-Yangtze Petrochemical's new 160,000-ton plant in Nanjing was put into operation. BASF has postponed two major projects in Brazil and StoHaas has shelved plans to build new capabilities in Germany. Before the improvement of profitability, the investment plan is unlikely to recover. It is expected that more production facilities will be consolidated.
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