The Polyacrylamide market in Germany witnessed average price changes in September 2024, due to changes in the supply – demand balance. By the end of the month, Polyacrylamide was getting traded at USD 3,551 per MT on FD – Hamburg basis, indicating a 1.5% decrease from August.

Throughout the month, demand for Polyacrylamide remained stable from sectors like water treatment and enhanced oil recovery (EOR), but this was not sufficient to balance the pressure created by increased imports and a resultant oversupply. The decline in prices were also influenced by the constant availability of cheaper imports from other European suppliers, which added to the competitive pricing environment.

Reduced production costs, due to decline in natural gas and feedstock acrylamide prices, allowed Polyacrylamide manufacturers to maintain stable output levels, even as demand remained moderate. However, the oversupply situation, worsened by the underperformance of sectors like construction and paper, pushed prices downward.

Despite steady demand from the water treatment sector, inadequate demand from other key industries kept the Polyacrylamide market under pressure, resulting in the overall price decline. Looking forward, unless there is a notable improvement in demand, particularly from industries like construction and paper, Polyacrylamide prices may continue to face downward pressure.

The construction and paper industries are typically key consumers of Polyacrylamide, especially in applications like wastewater treatment, which requires large volumes of this commodity. However, in September, both sectors underperformed due to reduced economic activity. This lack of demand left an oversupply of Polyacrylamide in the market, forcing manufacturers to reduce prices to remain competitive.

In addition to the construction and paper sectors, the performance of the oil recovery sector also played a key role. Although demand from this sector remained steady, it was not sufficient to bring about a recovery in demand. Manufacturers faced additional challenges from increasing inventories, as they struggled to find buyers to clear off their excessive Polyacrylamide stock.

Looking forward, the Polyacrylamide market in Germany faces continued uncertainty for the rest of this year. While a modest price increase is expected in October (this month), it would likely be due to short-term inventory adjustments. However, the market is projected to reduce again, with prices declining by 2.5% in November and further in December, due to constant oversupply and diminished demand from industries like construction and paper.

Sustained demand from water treatment and a potential recovery in sectors like oil recovery will be critical in stabilizing prices. However, unless the construction and paper industries see significant growth, the Polyacrylamide market is likely to remain under pressure in the coming months.

In summary, after a 1.5% decline in September, Polyacrylamide prices are predicted to change with a brief rise in October followed by reductions in November and December. The market’s near – outlook depends upon demand recovery and effective inventory management.