Rising Demand and Supply Challenges Drive Acrylamide Prices Up in June 2024

Texas, USA: Acrylamide prices in the US market have continued their upward trend in June 2024 as the demand conditions improved further while the supply challenges continued. In June, the price of Acrylamide rose by nearly 4.0% as the imports became more expensive due to higher freight charges, shipping delays, and higher production costs. Domestic industrial and household activities, along with heightened demand in the water treatment sector for the upcoming summer season, positively supported Acrylamide prices. However, the demand for Acrylamide from the downstream textile and paper industries continues to remain underwhelming.

According to a new report from the National Retail Federation, major U.S. container ports are projected to experience the highest inbound cargo volume in nearly two years this summer. This surge is driven by increased consumer spending and retailers stocking up to meet rising demand. Despite ongoing supply chain challenges, such as overseas port congestion and high shipping costs, import levels for Acrylamide and other goods are expected to stay elevated for the next several months. Overall, the economic health registered further developments, and industry participants are optimistic about the future of Acrylamide in the market.

This summer, the companies have had to make significant adjustments to their operational costs due to rising container rates for ocean freight. Additionally, a few manufacturers in China were under maintenance shutdown in June which had a short-term impact on Acrylamide prices. For the month of June 2024, the assessed prices of Acrylamide Powder CFR USGC were USD 1558 per ton.

Throughout the month, the freight charges have also supported the higher prices of Acrylamide. In Q3, ocean rates in the broader U.S. export market are increasing, driven by rising rates in global container markets. Congestion at key destination transshipment hubs for U.S. exporters, including ports in Asia and the Mediterranean, is contributing to these challenges. Volumes on the Transpacific route remain strong and exceed last year's numbers, despite structurally blank sailings caused by Cape of Good Hope routings and port congestion in Asia and North America. All General Rate Increases (GRIs) for June have been applied, with additional rounds expected for all Transpacific Eastbound routes due to anticipated peak conditions in July. Shipping lines will increase rates to the East Coast at twice the rate of those to the West Coast to handle high booking volumes.

According to the ChemAnalyst pricing intelligence, the prices of Acrylamide are anticipated to demonstrate an upward trend in the upcoming weeks backed by the increase in procurement due to the summer season.