Growth of Chinese Exports of Acrylates and Methacrylates: Impact on EU Prices

Commodity Profile of Acrylates and Methacrylates

Acrylates and methacrylates form a class of chemical compounds of fundamental importance to the industry due to their versatility and wide range of applications across various sectors. These compounds are derived from acrylic and methacrylic acids and are obtained through esterification with different alcohols, resulting in products with specific chemical and physical properties.
Below is a table listing the various esters obtained from the reaction of the two acids with different alcohols.

Esters of Acrylic Acid and Methacrylic Acid

Acrylates and methacrylates have high polymerizable properties, making them particularly suitable for the production of polymers and copolymers used in coatings, adhesives, synthetic resins, paints, and plastic materials. Additionally, they are widely employed in highly specialized sectors such as the biomedical and optical industries.
Specifically:

• Methyl acrylate (MA): used in the production of adhesives, paints, and sealants.
• Ethyl acrylate (EA): employed in the production of polymers for coatings and adhesives.
• Butyl acrylate (BA): used in acrylic resins for paints and industrial coatings.
• Isooctyl acrylate (ITA): used in formulations requiring greater elasticity.
• Methyl methacrylate (MMA): the primary monomer for producing polymethyl methacrylate (PMMA, commonly known as Plexiglass), used in transparent sheets, optical lenses, and protective screens.
• Ethyl methacrylate (EMA): used in paints and resins with high chemical resistance.
• Butyl methacrylate (BMA): employed in coatings for the automotive and aerospace industries.
• Isobutyl methacrylate (IBMA): used in special formulations for elastomeric materials and high-performance paints.

Main Producing and Exporting Countries

Before the pandemic, China held a secondary position in the global trade of acrylic and methacrylic acids and their esters (acrylates and methacrylates), competing with Japan and South Korea for fourth place. The top positions, with a significant lead, were dominated by Belgium, the United States and, above all, Germany.
As illustrated in the chart, the situation changed dramatically in 2021-2022, when China emerged as the only exporter capable of meeting the growing global demand. In a short time, the country climbed the ranks of the world's leading competitors, becoming the top global exporter in 2024, surpassing even Germany.

Impact on EU Prices

The following tables present the annual average prices of acrylic and methacrylic acids and their respective esters, based on EU customs data and Chinese exports (China FOB).

Prices of Acrylic Acid and Its Esters (euro/ton)

Prices of Methacrylic Acid and Its Esters (euro/ton)

The analysis of these data highlights the following key points:

• In 2019, the prices of products in China and the EU were aligned. However, by 2024, Chinese prices are significantly lower than European prices, indicating a competitive pricing strategy driven by Chinese exports to the European market.
• The pressure exerted by Chinese competition on EU price increases is stronger for basic commodities and progressively weakens as product differentiation opportunities increase. Specifically, in 2024, the prices of the two acids in the EU have returned to 2019 levels, representing an exception in the broader European market. This highlights the "containment" effect exerted by Chinese prices, with Chinese FOB export prices in 2024 even lower than in 2019.
• The shift in China's competitive strategies is particularly evident in the pricing of methacrylic acid esters, where both CIF import prices and FOB export prices are reported. Over the past five years, China has transitioned from being a net importer to becoming not only a net exporter but also the leading player in the global trade of these products. This market share gain has been achieved through highly aggressive pricing policies.

Conclusions

The disruption of global trade caused by the Covid-19 pandemic, followed by a sharp increase in commodity demand, led to a worldwide supply shortage of various chemical products, including acrylates and methacrylates. This situation provided Chinese companies with an opportunity to expand their global market presence by implementing aggressive pricing strategies. The main effect on the European market has been the containment of acrylate and methacrylate price growth during the strong demand phase of 2021-2022, followed by a more rapid price decline in the subsequent years. In particular, in 2024, the prices of acrylic and methacrylic acids have returned to 2019 levels.