In Q1 2024, the global Super Absorbent Polymer (SAP) market experienced a slight bearish trend, primarily influenced by reduced demand and a downward shift in prices. In East Asia, particularly in China, SAP prices were reported at $1232/MT, reflecting a decrease of 4.86% from the previous quarter. This decline was driven by lower consumption of SAP in key sectors like hygiene products and agriculture, as well as shifts in market dynamics. Despite this decrease, strong demand from healthcare and personal care industries in South Korea helped stabilize prices in the region.
In Q2 2024, the bearish trend continued as SAP prices in China dropped further to $1195/MT, a 3% decrease from Q1. The dip was attributed to low demand for hygiene products, specifically in the baby diaper and adult incontinence markets, which are significant consumers of SAP. Additionally, unfavourable agricultural conditions reduced demand for SAP in water retention applications. Rising production costs, driven by elevated raw material prices and persistent logistical challenges, further dampened market sentiment, contributing to declining prices.
By Q3 2024, SAP prices had slightly decreased, with July 2024 prices in China at $1192/MT, marking a marginal stabilization of 0.25% compared to Q2. This stability was largely due to abundant supply globally, as several manufacturers ramped up production amid lower demand. However, the global market still faced logistical bottlenecks, particularly in Asia, where shipping delays and container shortages continued to impact the overall market balance. A slowdown in demand from the hygiene sector, coupled with steady agricultural consumption, prevented any significant price recovery.
Looking ahead to Q4 2024, the SAP market is expected to experience a mild recovery as demand from the packaging and healthcare sectors picks up ahead of the festive season. Anticipated stronger consumption from the agriculture sector, driven by improved weather conditions, may also boost demand. However, challenges such as ongoing supply chain disruptions, fluctuating freight rates, and elevated production costs are likely to keep upward pressure on prices, despite the possibility of abundant supply continuing to balance the market.