In July 2024, the United Kingdom's Polyacrylamide (PAM) market observed a moderate price decline, exhibiting a slight adjustment following the previous month's increase. PAM prices, which were noted at USD 3,220 per metric ton on FOB – Immingham basis in June, decreased by 2.5%, reaching USD 3,140 per metric ton by the end of July.

This decline follows a 1.5% increase in June, where the market experienced a temporary boost to USD 3,220 per metric ton. The subsequent downturn in July, leading to a price of USD 3,140 per metric ton, indicates a recalibration within the market as supply and demand dynamics balanced.

Demand for PAM remained robust, primarily driven by sectors such as water treatment, oil and gas, and paper manufacturing. These industries continued to necessitate PAM due to its critical role in processes like wastewater treatment, enhanced oil recovery, and paper processing. Despite the price reduction, the overall market for PAM in the UK showed resilience, supported by consistent demand across these key sectors.

On the supply side, the market remained relatively stable, with manufacturers maintaining production levels sufficient to meet the continuing demand. The absence of significant supply chain disruptions ensured a steady availability of PAM within the market. However, global economic factors, including fluctuations in the cost of acrylamide, the primary raw material for PAM, posed challenges to maintaining price stability.

Looking forward, the UK PAM market is expected to experience a gradual recovery in the upcoming months. Following the decline in July, a slight increase in prices is anticipated as the market approaches September. This expected upward trend suggests a response to seasonal demand shifts and a balancing of supply and demand dynamics. Market participants are likely to carefully manage their inventories in alignment with these changes, remaining vigilant to potential challenges such as increased input costs or logistical disruptions.

As the year progresses, particularly towards the final quarter, demand for PAM may further increase, driven by heightened industrial activity and seasonal factors. The resilience of the UK’s industrial sectors, especially in water treatment and energy, is expected to support this recovery, potentially leading to a steady rise in PAM prices. Additionally, improvements in global logistics and supply chains could contribute to further market stabilization, providing a more predictable pricing environment as the year concludes.

In conclusion, while the PAM market in the UK experienced a moderate decline in prices in July 2024, the underlying market fundamentals remain strong. Industry participants should maintain vigilance and adaptability, prepared to respond to evolving conditions and capitalize on both challenges and opportunities in the months ahead.