Hamburg, Germany: The German Acrylamide prices have continued their upward trajectory in the first half of September on the back of improved consumption and inflow of higher-priced goods. In recent months, German Acrylamide prices have surged, driven primarily by the increased cost of imported acrylonitrile, a key raw material. The upward pressure on acrylonitrile prices, exacerbated by global supply constraints, has directly impacted production costs for Acrylamide manufacturers. Additionally, August saw the usual slowdown in demand due to the summer holidays across Europe, which further tightened market activity. The combination of higher raw material costs and reduced trading volumes during the holiday period has contributed to the continued rise in Acrylamide prices in Germany.

The manufacturers of Acrylamide have been operating at reduced rates due to high material availability and sluggish consumer demand in the domestic market. Sharp declines were seen in new orders, purchasing activity, and employment rate. Businesses also reported higher transport costs, and manufacturers expressed less optimism about their growth prospects for the year ahead. Cost-wise, the support from the upstream Acrylonitrile has remained strong in recent weeks. Meanwhile, uncertainty in the upstream crude oil market continues, however, the market participants have now adapted to the new changes.

Furthermore, Europe is facing major weather-related disruptions, with heavy snow and flooding affecting multiple countries. In the Alps, snowfall is causing major transportation problems. The situation is worsened by severe rain warnings in southern Germany, Austria, and the Czech Republic, where red alerts have been issued due to the forecasted heavy rainfall, heightening the risk of further flooding. Amid these circumstances, the consumption of Acrylamide has noted a further increase in the first half of September.

As per the recent assessment done by the ChemAnalyst pricing intelligence, the prices of Acrylamide settled at USD 1441/MT in the last week of August 2024.

Demand for Acrylamide from downstream sectors like textiles, water treatment, and paper and pulp industries has increased in both domestic and European markets because of the resumption of activities post the holidays. Purchases of chemicals including Acrylamide have increased, while domestic inventories in the region remain low due to sluggish procurement in August. However, the global oversupply in the packaging market has introduced a new set of challenges for producers and distributors alike. This surplus, driven by increased production capacities and fluctuating demand, has led to price pressures and heightened competition. However, despite these immediate hurdles, the outlook for key segments such as containerboard, boxboard, graphic paper, and kraft paper remains positive, signaling potential growth opportunities.

According to market analysts, Acrylamide prices are poised to demonstrate a further upward trend in the upcoming weeks, owing to the monsoon season and imports of expensive goods into the market.