Acrylic acid isn’t a celebrity chemical, but anyone who follows Indian industry knows how much demand it attracts. Manufacturers of paints, adhesives, textiles, and hygiene products lean on it. Price fluctuations for acrylic acid can immediately swell input costs across sectors, and folks at production units pay heavy attention to the quotes coming in each month.
Recent months have brought surprises. Costs have zig-zagged. Raw material supply takes some blame, with propylene—one of the main feedstocks—seeing its own rollercoaster in international markets. India sources a significant chunk of acrylic acid and raw propylene from abroad. Global shipping challenges, currency swings, and new trade policies in exporting countries all ripple rapidly into Indian invoices.
It’s easy to overlook the way acrylic acid turns up in everyday products. Disposable diapers rely on its absorbent polymers. Electronics need coatings and adhesives born from the molecule. Packaging films, paints, and even home textiles draw from the same supply. Only a few big domestic players make acrylic acid in-house. The rest rely on either imports or contracts with these big producers, which means price shocks spread fast across industries.
One major Indian polymer company recently reported that a ten percent jump in acrylic acid price added several crores to its monthly spending. That cost either gets pushed onto buyers or squeezed out of profit margins. Smaller downstream manufacturers can get hit much harder. They may lack negotiating power and must buy as needed, not when pricing is soft. When prices stay volatile, their own survival becomes a tougher game.
Feedstock propylene has held much of the spotlight. When crude oil prices spiked in 2022 and again last year, propylene tags followed. Refineries in China or Middle East tightening maintenance schedules or shifting export rules affect supply. Freight disruptions in the Suez Canal, Red Sea, or even port congestion can drag out lead times and force Indian buyers to scramble.
The domestic production base for acrylic acid has not seen new capacity in several years. Proposed expansion projects get stuck on environmental clearances or tough financing terms. This lack of growth, combined with demand rising each year, leaves the market vulnerable. If just one local plant has unexpected downtime, the market immediately shifts to imports, and spot prices jump.
More domestic production could buffer Indian users from these whiplash price cycles. Investing in propylene crackers and downstream acrylic acid units takes real capital, but local companies have begun joint ventures to see if production at scale can compete with global imports. India’s green hydrogen initiatives may also offer cheaper, more predictable feedstock sources in the long run.
Another path lies in smarter purchasing and digital forecasting. Tools for real-time tracking of global supply, weather issues, and port status give buyers more warning. Industry associations could band together to secure longer-term contracts, reducing reliance on the spot market mood. Incentivizing recycling of absorbent polymers from used hygiene products could create a small but meaningful local supply, while research labs chase alternatives that use bio-based raw materials instead of traditional petrochemicals.
It’s clear that industry can’t bet on smooth seas for pricing anytime soon. Real solutions will combine local production growth, savvy procurement, and fresh research. Those who adjust fastest will suffer less pain when the next spike arrives.
