FOB-Texas: Recently, the global Polyacrylamide (PAM) market has witnessed a remarkable increase in demand, fueled not only by the wastewater treatment industry but also by the Enhanced Oil Recovery (EOR) process. This dual surge in consumption has led to a significant upward trend in PAM prices, impacting both the US and European markets. PAM is an essential chemical for water treatment processes. Additionally, the oil and gas industry relies on PAM for its ability to improve the efficiency of oil extraction processes. The demand for PAM surged due to the industry’s focus on maximizing production and recovering additional oil reserves. As a result, the industry’s heightened demand has created a supply-demand imbalance, resulting in notable price escalations.

In the US market, the combined surge in demand from wastewater treatment and Enhanced oil recovery has put significant pressure on the supply of PAM. Suppliers are experiencing challenges in meeting the increased demand due to low stock levels. Consequently, PAM prices have steadily risen across the US market. In order to meet the growing demand, there has been a significant increase in trading activities for the commodity. Moreover, market participants have shifted their focus towards acquiring substantial stocks to stockpile inventories further. Additionally, providers continue to receive requests for products with low inventory records. Furthermore, there has been a rise in the export of PAM from the Us region to the Asian region as businesses demonstrate an interest in bulk purchasing.

Similarly, the European market has also been impacted by rising demand for PAM from wastewater treatment and enhanced oil and gas recovery. The water treatment industry continues to be the primary driver of the growing demand for PAM, with its exceptional flocculation and coagulation properties. European countries, including Germany, France, and the United Kingdom, have witnessed an upswing in the inquiries and orders for PAM. However, suppliers in the region are facing difficulties in meeting this increased demand, resulting in a price hike.

As per ChemAnalyst, based on current trends and market dynamics, the demand for this commodity is expected to continue to rise in the coming month. The high trading activity and stockpiling of inventories indicate sustained interest and a strong market outlook. Following the initial surge in demand, the market is expected to stabilize and reach a balanced state. The increased trading activities and inventory stockpiling may help mitigate supply shortages and meet the requirement of downstream industries. As a result, market participants may adjust their procurement strategies to align with stabilized demand with the normalized market condition.