Acrylamide market in Germany witnessed a significant turmoil as the market grappled with weak demand, rising feedstock volatility, and challenging economic conditions in the first half of December 2024. Prices of Acrylamide dropped in response to reduced industrial activity across Europe, particularly in sectors reliant on Acrylamide-based water treatment chemicals.

The upstream Acrylonitrile prices in Europe saw marginal declines in November, trading at approximately USD 1210–1250 per ton FD. This downward trend was supported by softening crude oil prices, which stabilized after months of fluctuation. However, entering December, crude oil futures climbed, extending gains on successive sessions, fueled by worries about limited global crude supplies. These concerns intensified following recent US comments indicating tougher limitations on Russian and Iranian operations, which compounded supply worries in light of the EU’s 15th sanctions package aimed at Russian oil.

Acrylamide consumption in water treatment, a critical application, has slowed notably due to reduced industrial activities and seasonal factors. Europe's industrial output continues to face headwinds, with energy-intensive industries scaling back operations amid high energy costs. Furthermore, the onset of winter has curtailed demand for wastewater treatment chemicals including Acrylamide as lower construction and industrial activity reduces water discharge volumes requiring treatment.

Municipal water treatment plants, another major consumer, have also cut back on procurement due to fiscal tightening measures across several European economies. These trends underscore the broader decline in chemical consumption, with Acrylamide being no exception.

Germany, the largest economy in Europe, is facing a protracted period of economic uncertainty. High inflation rates, rising interest rates, and subdued consumer confidence have collectively weighed on industrial output. The chemical sector, which is particularly sensitive to economic shifts, has seen reduced investment and slowing downstream demand.

In addition, supply chain disruptions caused by geopolitical tensions and fluctuating energy prices have further complicated market dynamics. While lower freight costs have eased some logistical pressures, they have done little to offset the lackluster demand across key Acrylamide-consuming industries.

According to the ChemAnalyst pricing intelligence, the prices of Acrylamide are anticipated to decline in the latter half of December. Acrylamide prices are expected to remain under pressure in the near term, with any recovery hinging on a combination of economic stabilization and improved downstream demand. The broader outlook for the European chemical sector remains uncertain, reflecting the interplay of geopolitical, economic, and seasonal factors.

As Germany heads deeper into December, market participants remain cautious. Producers are navigating a landscape of low demand, oversupplied inventories, and persistent economic challenges. The water treatment sector, while critical, is unlikely to see a rebound until industrial activities recover and seasonal demand patterns shift.