For the Quarter Ending September 2024
North America
In Q3 2024, the acrylamide market experienced a mixed pricing environment in the North America region. In the first half of the quarter, U.S. acrylamide prices rose significantly due to high-priced imports and a 3% increase in upstream acrylonitrile prices. Demand from the water treatment sector remained strong, while inquiries from the paper and pulp manufacturing sector were low. Despite ongoing uncertainty in the upstream crude oil market, participants adapted to these changes. Additionally, global oversupply in packaging introduced competitive pressures, although the outlook for key segments like containerboard and kraft paper remained positive.
In the second half of Q3 2024, the acrylamide pricing environment in North America witnessed a significant decline, influenced by various market factors. The quarter was marked by disruptions, including plant shutdowns by key players like SNF Floerger Group and Kemira Water Solutions due to hurricanes, which led to supply constraints and contributed to the downward price trend. Decreased industrial and household activities, along with reduced demand in the water treatment sector, further pressured prices.
Specifically in the U.S., the market experienced a 3% increase from the previous quarter, with the quarter-ending price settling at USD 1494/MT for acrylamide powder CFR USGC. Overall, the quarter was characterized by fluctuating prices driven by supply chain challenges and reduced demand, creating volatile market sentiment.
APAC
In Q3 2024, the Acrylamide pricing in the APAC region saw a significant increase due to various factors. Market prices were influenced by firm consumer demand, heightened industrial activities, and increased demand in the water treatment sector, especially from the water treatment sector, where it played a vital role in flocculants for water purification. Additionally, while upstream acrylonitrile prices fell by 3.6%, manufacturers maintained moderate production levels, ensuring sufficient inventory to meet ongoing demand. The ongoing conflict between Israel and Hezbollah, along with drone attacks on Russian refineries, added pressure on the upstream crude oil market, contributing to the price surge. The disruption in plant operations at Yongsan Mitsui Chemicals, Inc. in South Korea also impacted supply, further boosting prices.
China, experiencing the maximum price changes, saw a notable increase in Acrylamide prices. The market trend in China reflected a positive sentiment with an overall increasing price environment. The quarter recorded a -7% change from the previous quarter. The quarter-ending price for Acrylamide FOB Ningbo in China stood at USD 1211/MT, showcasing a consistent upward pricing trend.
Europe
In Q3 2024, the acrylamide market experienced a hybrid pricing environment in the European region. During the first half of Q3 2024, the acrylamide market in Europe saw escalating prices driven by increased demand from industries such as textiles, water treatment, and paper and pulp, leading to a tightening of supply. Supply chain disruptions, including plant shutdowns, further constrained availability, pushing prices upward. Germany experienced the most significant price fluctuations compared to other European countries, influenced by seasonal trends and market dynamics that highlighted a strong correlation between demand patterns and pricing adjustments. In the second half of Q3 2024, acrylamide prices in the German domestic market declined due to weak upstream support, as continuous drops in acrylonitrile prices and reduced crude oil costs further weakened the cost structure. Despite a moderate uptick in demand from the water treatment sector, overall demand remained low to moderate, particularly from the subdued paper and pulp manufacturing sector. This led to cuts in purchasing activity and employment, with significant reductions in input demand resulting in decreased purchasing prices and output charges. The market situation was bearish, with manufacturers operating at reduced rates amid high material availability and sluggish consumer demand. Despite a slight decrease in prices from the previous quarter, the overall trajectory for acrylamide pricing in Germany remained positive throughout Q3. The quarter concluded with the price of acrylamide FOB Hamburg reaching USD 1412/MT, reflecting a market sentiment characterized by fluctuating pricing trends.
For the Quarter Ending June 2024
North America
In Q2 2024, Acrylamide pricing in North America experienced a significant upward trend driven by several key factors. There was a notable increase in demand for Acrylamide due to heightened industrial and household activities, especially in the water treatment sector. This demand surge coincided with supply-side disruptions, including a temporary Force Majeure declared by SNF Floerger Group in Pearlington, Mississippi, due to a storm in May 2024, which impacted market availability. Additionally, the rising cost of upstream raw materials such as Acrylonitrile and increased freight charges contributed to the elevated price levels.
In the USA, the market saw the most significant price changes within North America. The overall trend reflected a consistent increase in prices due to seasonal demand peaks for water treatment products during the summer. The quarter witnessed a 10% price increase from the previous quarter.
Hence, the pricing environment has been predominantly positive, marked by robust demand and constrained supply. The quarter ended with the price of Acrylamide Powder CFR USGC at USD 1558/MT. Despite some supply chain challenges and plant shutdowns, the market's upward pricing trajectory underscored the strong market fundamentals and anticipated ongoing demand.
APAC
In Q2 2024, Acrylamide prices in the APAC region experienced a mixed trend due to several significant factors. Initially, during the first two months of the quarter, prices showed an upward trend. Acrylamide prices in the Chinese domestic market rose due to improved consumer demand and increased industrial and household activities, particularly in the water treatment sector. The rise in upstream Acrylonitrile costs by 1.6% also contributed to the price increase. Despite a decrease in crude oil prices, driven by an unexpected surge in US crude oil inventories and subdued demand forecasts, Acrylamide prices remained bullish. Overall, China's exports and imports rebounded in April and May, reflecting improved domestic and international demand.
However, in June 2024, Acrylamide prices plunged in the Chinese domestic market due to a slowdown in consumer demand and high inventory levels. The monsoon season led to reduced purchases from the water treatment sector, and inquiries from the paper and pulp manufacturing sector remained muted. Upstream Acrylonitrile prices decreased by 1.0%, while ongoing conflicts and disruptions in the oil market continued to exert cost pressure. Overall, weak demand and sufficient supply contributed to the bearish market situation.
Focusing on China, where the most substantial price fluctuations occurred, the quarter saw a marked downward trend in Acrylamide prices. A significant event contributing to this decline was the force majeure declared by Anhui Jucheng Fine Chemicals Co., Ltd. due to a heavy rainstorm from June 23-30, temporarily halting operations and affecting supply. However, the impact on overall market prices remained limited due to high initial inventories and steady production rates from other manufacturers. The correlation between seasonal demand shifts and price changes was evident, with the summer season typically seeing lower consumption. Overall, the pricing environment for Acrylamide in Q2 2024 was negative by the end of the quarter, reflecting a consistent downward sentiment. Compared to the previous quarter, prices decreased by 7%, underscoring this trend. The quarter concluded with Acrylamide priced at USD 1197/MT FOB Ningbo, indicating a significant reduction from earlier levels and marking a period of price stabilization aligned with decreased demand and improved raw material availability.
Europe
In Q2 2024, Acrylamide prices in the European market experienced a pronounced upward trajectory, driven by a combination of supply chain disruptions, escalating raw material costs, and heightened freight charges. The prices surged as the market contended with ongoing issues in the Red Sea and Suez Canal, which exacerbated shipping delays and contributed to the rising cost of logistics. The rebound in crude oil prices also played a pivotal role, as OPEC+ members extended production cuts, directly impacting the cost pressure on upstream Acrylonitrile, a key precursor in Acrylamide production.
Germany witnessed the most significant price fluctuations within Europe during this quarter. The German market displayed an incrementally bullish trend as demand from downstream sectors like textiles, water treatment, and the paper industry showed a moderate recovery. This recovery coincided with the pre-summer restocking activities, which further strained the supply-demand dynamics. The overall sentiment in the German Acrylamide market was positive, manifesting a 13% increase from the previous quarter.
The quarter concluded with Acrylamide priced at USD 1438/MT FOB Hamburg, underscoring a steady upward momentum in the market. Despite the disruptions, no significant plant shutdowns were reported, suggesting that the supply chain managed to navigate through the challenges without substantial operational halts. The pricing environment in Q2 2024 was decidedly positive, reflecting robust underlying demand and constrained supply conditions.
For the Quarter Ending March 2024
North America
The first quarter of 2024 has been a mixed period for Acrylamide pricing in the North American region. In the USA, the overall trend has been bullish, with prices inclining over the quarter. In the first month, Acrylamide prices dropped due to weak demand, especially in water treatment and paper-making sectors. Severe weather disrupted operations, leading to temporary closures. Paper demand fell by 2%, reflecting a broader slowdown in packaging. Supply disruptions in the Middle East caused shipping delays, affecting Acrylamide imports.
However, in the last two months, the prices noted a significant increase. Firstly, there was an increase in the cost of upstream Acrylonitrile, which led to higher production costs and subsequently impacted the pricing of Acrylamide. Additionally, during these two months, higher freight charges due to supply disruptions in the Middle East and potential issues in the Red Sea and Suez Canal continued to exert upward pressure on the prices of the product.
Demand in the downstream water treatment and paper-making industries was low, leading to decreased consumption and weaker market conditions. The downturn in the paper-making sector, coupled with a decline in packaging demand, further dampened the overall demand outlook in the region. In conclusion, the pricing environment for Acrylamide in the North American region, has exhibited mixed trends during the first quarter of 2024. The latest quarter-ending prices for Acrylamide Powder CFR USGC in the USA were USD 1399/MT.
APAC
In Q1 2024, the pricing dynamics of Acrylamide in the APAC region, particularly in China, saw a mixed trend with moderate to low demand and steady to moderate supply. The prices of Acrylamide in China experienced marginal fluctuations, primarily driven by weak consumer demand and oversupply situations. The downstream textile, paper, and pulp manufacturing industries witnessed slow inquiries and increased destocking practices, leading to a lack of growth in new orders from the overseas market in the first half of the quarter.
The cost support from the upstream Acrylonitrile remained stable, with no major fluctuations observed. However, crude oil prices exhibited a decline in the first half of the quarter due to global oversupply and weakening demand dynamics. The year-end holidays and destocking season further resulted in diminished industrial activity and decreased demand for raw materials. The businesses operated at a slower pace, and low market transactions were registered in the region.
However, towards the end of Q1, the prices noted marginal improvement due to cost pressure from the crude oil market. Overall, the market was influenced by various factors such as weak consumer demand, oversupply situations, global crude oil prices, and seasonal effects. Overall, the market situation remained bearish, with moderate to high supply and low demand. The final quarter's price for Acrylamide FOB Ningbo in China was USD 1265/MT.
Europe
In the first quarter of 2024, the Acrylamide market in Europe, particularly in Germany experienced notable fluctuations driven by various factors. In January, the market witnessed a continued decline in prices due to weak consumer demand, particularly from downstream industries like textiles and water treatment. High product inventories further exacerbated the negative sentiment, compounded by a 4.2% monthly drop in the prices of upstream Acrylonitrile. Additionally, rising crude oil prices, spurred by geopolitical tensions in the Middle East, contributed to the market dynamics.
In February, the prices of Acrylamide reversed course and increased in the German domestic market. Concerns over supply disruptions, including tensions in the Red Sea region and conflicts such as the Israel-Hamas tension, intensified worries about global oil supply, leading to a 10% increase in crude oil prices during the first two months of 2024. This was attributed to increased cost pressure from upstream raw materials. Moving into March, Acrylamide prices in the German domestic market continued to rise due to further cost pressure from upstream raw materials, increasing by 2.2% monthly.
Additionally, OPEC+ members reached an agreement to prolong voluntary output reductions, further impacting manufacturing costs. Despite this, inquiries from downstream industries remained subdued amid low consumption rates. Inflation in Germany softened in March, indicating a potential decrease in price pressures across the eurozone. Final figures from the Federal Statistics Office revealed that inflation in Europe's largest economy eased to 2.3%, driven by declines in food and energy prices. Overall, while the market conditions showed a slight improvement in March, overall sentiments remained suppressed. The discussions for Acrylamide FOB Hamburg settled at USD 1314/MT at the end of Q1 2024.
For the Quarter Ending December 2023
North America
In the fourth quarter of 2023, Acrylamide prices in the USA exhibited mixed trends due to various factors. In October, prices rose due to high-priced imports, but inflation eased in November, fostering improved business conditions. Positive trends continued in December as inflationary pressures further abated. Increased demand from water treatment and related industries contributed to better business conditions, and major exporting nations raised selling prices due to higher production costs.
November witnessed increased consumer spending and improved market activities, enhancing overall economic conditions. Despite only moderate demand in downstream industries, consumer confidence in the US increased in November and December, signaling optimism about future business conditions. However, higher Acrylonitrile prices on the supply side increased manufacturing costs, prompting major exporting nations to raise their selling prices.
As of December 2023, the assessed prices of Acrylamide Powder CFR USGC were USD 1300/MT, representing a 3% decrease compared to the previous quarter and a significant 65% decrease compared to the same quarter last year. The Acrylamide market in North America faced challenges due to weak demand, bearish market sentiments, and uncertain business conditions, leading to a notable decrease in prices compared to the previous year.
APAC
In the fourth quarter of 2023, the Acrylamide market in the APAC region experienced various factors influencing prices. Demand from downstream industries such as textiles, paper, and pulp remained on the upper side, leading to improved market conditions. However, slower manufacturing rates and the fragility of the economic recovery hindered overall industrial performance. Increased production costs, driven by higher prices of upstream raw materials like Acrylonitrile and Sulphuric Acid, contributed to the challenges faced. In China, significant changes in prices were observed, with an improved demand outlook and slight development in inquiries from domestic and overseas markets. The manufacturing sector saw a rebound in activity, reflected in the official Manufacturing Purchasing Managers' Index increase. However, factory-gate deflation continued, reflecting ongoing challenges in the economy's recovery from the post-pandemic downturn. Price analysis showed a 13% decrease compared to the same quarter the previous year, a 2% increase compared to the previous quarter, and a 1% price percentage comparison between the first and second half of the quarter. As of December 2023, the prices of Acrylamide FOB Ningbo in China were assessed at USD 1220/MT.
Europe
In the fourth quarter of 2023, the Acrylamide market in Europe demonstrated bearish sentiments, and prices declined throughout this period. In October, prices in Germany fell due to weak demand from industries, and Eurozone manufacturing production also declined, with new orders contracting significantly. Although there was a slight improvement in the manufacturing PMI, it indicated an ongoing decline in the sector. Supply chain operations eased due to weak consumer demand. November saw a further drop in prices in Germany, driven by sustained weak demand from downstream industries. Manufacturing activities continued to decline, despite a marginal improvement in the PMI. The supply chain further eased amid ongoing weak consumer demand. In December, prices in Germany continued to decrease due to persistent subdued demand. Downstream industries maintained weak consumer inquiries, leading to negative market sentiments. High product inventories and destocking activities by consumers were observed. Upstream Phenol prices dropped, and factory gate deflation persisted. Year-end holidays and destocking contributed to reduced industrial activity, with manufacturing companies slowing down or temporarily suspending operations.
