Many countries are experiencing extreme natural gas prices, which are at a fourteen-year high. This price surge and lack of availability threaten many consumers and manufacturers with more downstream supply chain problems. Many chemical manufacturers in Europe have even halted natural gas–based production of particular feedstocks to avoid additional profit losses. Furthermore, feedstock production in Europe for many plastic resins, including MMA, has reduced production rates by nearly 75% to prevent high natural gas costs.
Manufacturers utilizing backward or vertical integration during this time of uncertainty have played a major role in maintaining a reliable supply of chemical raw materials for a variety of applications. The Dow Chemical Company has expanded its role in the supply chain to fulfill upstream products typically completed by other manufacturing businesses.
Methyl methacrylate (MMA) monomer, usually used as a chemical intermediate for acrylics, has seen a range of volatility in manufacturing capabilities due to various global crises, from rolling blackouts shutting down manufacturing in APAC to the ethical sourcing of natural gas. With vastly reduced manufacturing rates of MMA across Europe and Asia, downstream chemical consumption, distribution, and, ultimately, consumers will face costly consequences.
Why Backwards Integrations Matters
The past two years, beginning with the unforeseen pandemic, have created a dynamic range of market conditions and supply challenges impacting the manufacturing, distribution, and production process from top to bottom. In these uncertain times, with the shutdown of chemical feedstock productions across Europe to Asia, domestic backward or vertical integration in this tight environment allows Dow Chemical to maintain a steady supply of their PARALOID™ acrylic and MMA impact modifier additives. This type of vertical integration is crucial for downstream manufacturers requiring reliable supply, competitive prices, and consistent quality.
Domestically Available PARALOID™ Acrylic Modifiers
The principal value of domestic manufacturing and supply security of acrylic processing aids, tougheners, and impact modifiers have allowed some volatility to ease within the United States. With production across the globe halting the supply of key raw materials for vinyl and engineering resin formulations, the Dow Chemical Company is here to offer domestically integrated acrylic modifiers and processing additives. Check out Dow's portfolio of domestically integrated acrylic modifiers readily available today.
Effectively reduces density and controls foam expansion in rigid and flexible PVC.
Summary
The Dow Chemical Company's portfolio of PARALOID™ processing aids, tougheners, and impact modifiers offers a solution to the growing demand for acrylic additives due to the market's supply and energy constraints. Dow's current position as one of the backward-integrated US suppliers of specialty acrylic additives helps downstream manufacturers maintain competitive prices and a more reliable supply. If you require acrylic impact modifiers or processing additives for your formulations, click the button below to talk to one of our specialists today.
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