For the Quarter Ending September 2024
North America
In Q3 2024, the Polyacrylamide (PAM) market in North America exhibited a generally stable pricing environment, reflecting balanced market dynamics throughout the quarter. The stability was underpinned by moderated inflationary pressures and a steady supply of raw materials, which kept production costs in check. Consistent demand from key sectors such as wastewater treatment and oil recovery further contributed to maintaining this stability, despite ongoing global supply chain challenges and elevated transportation costs.
In the USA, the market saw price adjustments as manufacturers responded to seasonal trends and shifts in production activities, especially in preparation for the holiday season. These factors contributed to fluctuations, with prices rising in July and August before stabilizing in September. Despite these changes, the market maintained a consistent balance between supply and demand.
The quarter concluded with Polyacrylamide Anionic Grade priced at 2,502 USD/MT FOB Texas, showcasing a steady pricing trend. The absence of notable disruptions or plant shutdowns during this period further emphasized the market's resilience, positioning it for continued stability as it moves into the final quarter of the year.
APAC
In Q3 2024, the Polyacrylamide (PAM) market in the APAC region experienced a steady increase in prices, with China leading in terms of market fluctuations. The price rise was primarily driven by strong domestic demand in key sectors, such as water treatment and industrial production, which bolstered market sentiment. Additionally, supply chain challenges, including longer lead times and transportation constraints, further pressured prices upwards. China, as a significant market player, faced notable disruptions, particularly with the temporary shutdown of the Beijing Hengju plant due to a typhoon. This event affected short-term supply, contributing to the upward momentum in prices. Seasonal factors, coupled with robust demand, sustained the positive trend throughout the quarter. The overall market environment remained optimistic, with prices rising consistently from July through September. By the end of Q3, Polyacrylamide Anionic Grade FOB Qingdao reached 860 USD/MT, reflecting a stable and upward trend. Despite challenges, the market's ability to maintain supply continuity emphasized resilience, positioning the region for continued growth in the upcoming quarters.
Europe
In Q3 2024, the Polyacrylamide (PAM) market in Europe displayed a stable yet upward-leaning pricing environment. The increase in prices during this period was supported by steady demand from critical industries such as water treatment and oil recovery. Improved supply chain efficiencies and better availability of raw materials, such as acrylamide, also helped mitigate some cost pressures, contributing to the market's overall stability. In Germany, fluctuations in prices were more prominent, as local factors like supply chain disruptions and varying input costs influenced the market. The region, being a significant player in the European market, witnessed a notable rise in prices through July and August before experiencing a slight pullback in September. Seasonal trends and production adjustments further shaped market dynamics. Despite the challenges posed by economic uncertainties, the quarter recorded a consistent upward movement in prices, with no major supply disruptions. By the end of Q3, the price of Polyacrylamide Anionic Grade FD Hamburg was recorded at 3,551 USD/MT, marking a balanced yet positive pricing environment throughout the period.
For the Quarter Ending June 2024
North America
During Q2 2024, Polyacrylamide (PAM) pricing in North America demonstrated a significant upward trend, driven by a combination of market dynamics and external factors. The surge in prices was primarily attributed to robust demand from key sectors, including water treatment and enhanced oil recovery (EOR). Manufacturing employment levels also indicated economic recovery, bolstering the demand for PAM.
Additionally, the rise in raw material costs, notably acrylamide, and an increase in manufacturing PMI, further contributed to the price hike. The quarter was marked by an event of force majeure at SNF Floerger Group's facility in Pearlington, Mississippi, due to a power outage from May 27th to May 29th, creating temporary supply disruptions that impacted pricing. Focusing on the USA, where the most notable price changes were observed, the market exhibited strong upward momentum. Seasonal demand spikes, particularly from the oil and gas sector, coupled with ongoing stringent environmental regulations in wastewater treatment, played a crucial role in sustaining high prices.
The correlation between increasing crude oil prices and raw material costs further pushed PAM prices upward. Compared to the previous quarter's -2% change, this quarter saw a robust recovery in prices. The price comparison between the first and second half of the quarter showed a 2% increase, reflecting consistent demand and constrained supply. The period concluded with the quarter-ending price for Polyacrylamide Anionic Grade at USD 2410/MT on FOB Texas basis, underscoring a persistent positive pricing environment. Overall, the quarter has been characterized by a bullish sentiment, with strong demand and supply chain disruptions driving market prices upward.
APAC
The second quarter of 2024 has proven challenging for the Polyacrylamide (PAM) market in the APAC region, marked by a consistent decline in prices. This downturn can be attributed to several significant factors. Firstly, diminished demand from key sectors, particularly water treatment and paper industries, has exerted downward pressure on prices. Additionally, the oversupply of PAM, exacerbated by ample availability of raw materials, has further compounded the situation. The economic slowdown across the region has also resulted in subdued market sentiments, contributing to the bearish pricing environment. Furthermore, logistical disruptions have played a role, with significant plant shutdowns impacting supply chains. Notably, Anhui Tianrun Chemicals Co., Ltd. in China experienced an unscheduled shutdown in late June due to floods, which affected supply dynamics. Focusing on China, the PAM market witnessed the most pronounced price changes in the APAC region. The overall trend for the quarter was decidedly negative, influenced by seasonality and the inherent correlation of price changes with downstream demand fluctuations. Compared to the previous quarter, prices saw a steep decline, reflecting the broader market's bearish sentiment. Additionally, a comparison between the first and second half of the quarter revealed a further 3.6% drop in prices. The quarter concluded with the price of Polyacrylamide Anionic Grade FOB Qingdao at USD 810/MT. The pricing environment for Polyacrylamide (PAM) in the APAC region during Q2 2024 has been overwhelmingly negative, driven by a confluence of reduced demand, oversupply, and logistical disruptions, culminating in a substantial downward trajectory for PAM prices.
Europe
In Q2 2024, the European Polyacrylamide (PAM) market experienced an overall increase in prices, driven by multiple critical factors. The quarter was marked by robust demand from key sectors such as water treatment, oil recovery, and paper production, which significantly influenced market dynamics. The steady rise in production costs due to elevated acrylamide prices, compounded by fluctuating crude oil prices, further bolstered the upward pricing trend. The stringent environmental regulations enforced across Europe also played a pivotal role in maintaining high demand for PAM, essential for wastewater treatment and industrial processes. Germany, in particular, witnessed substantial price changes and led the region in terms of pricing shifts. The country's manufacturing sector showed resilience, as indicated by the upward trend in the PMI, despite facing challenges such as supply chain disruptions and fluctuating raw material availability. Seasonal factors also contributed to the price increases, with higher demand observed during the early part of the quarter, leading to a notable price comparison of a 3% rise between the first and second half of the quarter. Germany's market for PAM saw no change from the previous quarter but a pronounced increase from the same period last year, reflecting a positive pricing environment. The latest quarter-ending price for Polyacrylamide Anionic Grade in Germany was USD 3425/MT FD Hamburg, underscoring the sustained upward momentum in pricing driven by consistent industrial demand and regulatory pressures. The quarter was devoid of major plant shutdowns or operational disruptions, ensuring a stable supply amid rising demand. Overall, the pricing environment in Q2 2024 for Polyacrylamide in Europe, and particularly in Germany, exhibited a positive sentiment characterized by rising prices and robust market dynamics.
For the Quarter Ending March 2024
North America
In the first quarter of 2024, the North American polyacrylamide (PAM) market reflected a continued decline, with prices descending to USD 2,375 per MT on FOB – Texas basis by the end of March. The period was marked by a consistent mismatch between supply and demand, predominantly driven by an excess supply overhanging a tepid demand landscape.
Key downstream industries such as water treatment and oil and gas exhibited weak consumption patterns, which in turn left producers with growing inventories. These high stock levels among major players influenced trading activities, which leaned towards moderation as the industry responded to the soft market sentiment. Despite a normal production pace from domestic manufacturers and a slight rise in the Purchasing Managers' Index hinting at some positive business activity, these factors were insufficient to counterbalance the overarching market sluggishness.
Challenges in pivotal PAM-consuming sectors like textiles further exacerbated the cautious trading atmosphere, with many businesses prioritizing immediate, necessary procurement over larger, strategic stock building. This conservative approach, underscored by the prevailing economic uncertainties, was reflected in the adjusted price structures, ultimately leading to the reduced price point observed in March within the North American PAM market.
APAC
In the first quarter of 2024, the APAC polyacrylamide (PAM) market witnessed a downward price movement, with March prices settling at USD 850 per MT on FOB – Qingdao basis, indicative of a challenging quarter. The market contended with a consistent oversupply, which, when paired with a decrease in the costs of critical feedstocks such as Acrylamide, pressured producers to adopt aggressive pricing strategies to remain competitive. Despite China’s textile sector showcasing a growth spurt, it didn’t lead to an uptick in PAM demand, highlighting a disconnect between sector growth and raw material consumption. Sluggish demand was especially pronounced in key downstream industries, notably water treatment and paper manufacturing, which did not pick up as expected. This was compounded by global economic pressures, which dampened the traditional post-holiday demand surge. Furthermore, the manufacturing sector’s underperformance led to stockpiles of PAM, prompting suppliers to offer significant discounts in an effort to balance their inventories. As the quarter concluded, the APAC PAM market's trajectory emphasized the impact of reduced industrial consumption and feedstock pricing on market dynamics.
Europe
During the first quarter of 2024, the European polyacrylamide (PAM) market maintained a downward trend, with the price settling at USD 3,340 per MT in Germany in the month of March. The market was characterized by an oversupply, which, when coupled with tepid demand from the water treatment and oil and gas sectors, led to a surplus in stocks and put downward pressure on prices. This was further exacerbated by a sluggish manufacturing sector, reflected in a contraction of the Manufacturing PMI and the resulting impacts on labour and purchasing. The abundance of supply meant that producers were caught with high inventories, prompting them to lower prices in an effort to encourage sales amid weak market sentiment. Despite the challenges, suppliers received consistent inquiries, suggesting a level of market activity, albeit cautious. With buyers prioritizing immediate needs over bulk purchasing, the market saw limited fresh stock movements. The quarter closed with the European PAM market in a delicate state, balancing the need to manage inventories while also navigating the restrained demand from key downstream industries.
For the Quarter Ending December 2023
North America
The Polyacrylamide (PAM) market in North America during the fourth quarter of 2023 witnessed a declining trend, primarily due to reduced demand in key downstream industries such as industrial water treatment and the Oil & Gas Enhanced Oil Recovery (EOR) sector. The decrease in demand can be attributed to factors such as a global reduction in crude oil production, which had a cascading effect on various industries reliant on PAM.
Additionally, the market grappled with an oversupply situation, as there was an abundance of PAM products entering the market. This oversupply was a result of consistent production and readily available raw materials. The market was further complicated by the uncertainties surrounding demand and pricing dynamics, creating an environment of uncertainty for industry participants. In the USA, the market sentiment was bearish, with high supply and low demand.
The reduced consumption from sectors like industrial water treatment and Oil & Gas (EOR) significantly contributed to market sluggishness. However, the market benefited from the lower cost of feedstock Acrylamide, which helped manage overall manufacturing expenses. No plant shutdowns were reported during this quarter. The price of Polyacrylamide Anionic Grade FOB Texas in the USA for the fourth quarter of 2023 was USD 2670/MT. Overall, the market faced challenges due to oversupply, reduced demand, and uncertainties surrounding global factors.
APAC
The Polyacrylamide (PAM) market in the APAC region during Q4 2023 was characterized by a bearish sentiment, with high supply and low demand. The market faced uncertainties stemming from reduced demand in key sectors such as industrial water treatment and Oil & Gas Enhanced Oil Recovery (EOR). These uncertainties were fueled by global factors, including a decrease in crude oil production. The oversupply of PAM products in the market contributed to muted trading activities, as companies had already accumulated sufficient material to meet their future needs. Despite the challenging market conditions, China experienced the most significant price changes, with a decline when compared to the previous quarter. The decline in demand from the water treatment and oil & gas industries, coupled with the availability of sufficient stocks in the region, led to a decrease in PAM prices. The latest price for Polyacrylamide Anionic Grade FOB Qingdao in China for Q4 2023 is USD 1120/MT. Overall, the market dynamics for PAM in the APAC region were influenced by the global reduction in crude oil production, oversupply of products, and weakened demand from key sectors.
Europe
In the European Polyacrylamide (PAM) market during the fourth quarter of 2023, the market experienced a bearish trend with low demand and oversupply. In Oct 2023, the ongoing decline in prices was primarily driven by reduced demand from downstream sectors such as water treatment and textiles. The market also faced challenges in managing excess inventory and finding avenues for product distribution. The drop in demand can be attributed to factors such as restrained demand from enterprises, reduced consumption in key sectors, and the global decrease in crude oil production. In Dec 2023, despite the low demand, the market benefited from cost-effective feedstock, which helped stabilize manufacturing expenses. Germany, as one of the major players in the PAM market, saw fluctuations in prices, with a decrease of 1.5% in November and an increase of 2.7% in December. The market sentiments in Germany were influenced by factors such as sufficient stocks, increased demand from associated industries, and fluctuating international market trends. In Dec 2023, the price of Polyacrylamide was USD 3660/MT for Anionic Grade FD Hamburg in Germany.
For the Quarter Ending September 2023
North America
In the US market, the overall market fundamentals of Polyacrylamide (PAM) exhibited mixed sentiments during the third quarter of 2023. The price of PAM experienced a minimal decrease of approximately 1.6% during the entire Q3. In the first month of Q3, the market demonstrated price stability after experiencing an increase from the previous month. There was an upward movement in demand from the enhanced oil recovery (EOR) sector, but weak demand from other downstream industries, such as paint and disinfectant, hampered the growth of the commodity. This led manufacturers in the region to make necessary adjustments to their pricing strategies. Despite these developments, consumers from the international market adopted a cautious stance, as enterprises had already accumulated ample inventories to meet their short-term demand requirements. Moving forward into the next month of Q3, due to the absence of notable changes in the factors affecting final prices, the prices of PAM in the US market continued to follow the market dynamics and conditions observed over the previous month. In the last month of Q3, the Polyacrylamide (PAM) market witnessed an upward trajectory in contrast to the previous month. This was due to a notable surge in demand from the overseas market. Furthermore, the rise in logistics charges due to the disruption caused by the Panama Canal pathway, which decreased the overall export volume, contributed to the overall price escalation amid continuous market expansion.
APAC
In the Asia-Pacific region, the market for Polyacrylamide (PAM) displayed an overall declining trend, with a decrease of approximately 28% during the third quarter of 2023. At the beginning of the quarter, the PAM market witnessed price stability. However, the PAM market faced several obstacles as uncertainty surrounded the demand outlook from downstream industries. This disruption put industry players on edge, leading to cautious approaches to investment. Moreover, the PAM market was impacted by a downturn in price due to weak export activity of the commodity across the globe. Moving into the second month of Q3, the price of PAM experienced a decline due to weak demand from the industrial water treatment and Oil & Gas (EOR) industries. The reduction in crude oil production from OPEC countries resulted in a weaker demand scenario for the product. Furthermore, weak feedstock Acrylonitrile prices also contributed to the overall manufacturing cost of PAM. This disruption continued to make industry players cautious in their investment decisions. In the last month of Q3, the PAM market followed a similar downward trajectory as the previous month. The uncertainty in demand from crucial downstream sectors persisted. Nevertheless, the market was somewhat cushioned by the favorable pricing of feedstock Acrylonitrile, helping to maintain competitive manufacturing costs. Additionally, the Asian market contended with the repercussions of weakened demand, further affecting market dynamics.
Europe
In the European market, Polyacrylamide (PAM) experienced a noticeable declining trend in the third quarter of 2023, with a decrement of approximately 5.8%. In the beginning of Q3, the price of PAM showcased a declining price trend. Fluctuations in demand from the downstream water treatment sector led to cautious market sentiments. High material inflow from the United Kingdom (UK) to the other European market left buyers hesitant due to accumulated inventories. Decreased demand from downstream industries contributed to muted trading activities. Enterprises focused on immediate stock procurement rather than bulk purchasing, resulting in discounted offers from sellers. Moving forward in the Q3, the PAM market experienced a similar downward trajectory as the previous month. Uncertainty in demand from crucial sectors like industrial water treatment and Oil & Gas (EOR) led to weakened market sentiment. This uncertainty was largely driven by global factors, including reduced crude oil production, which had a domino effect on industries reliant on PAM. Nevertheless, the market was somewhat cushioned by the favorable pricing of feedstock Acrylonitrile, helping maintain competitive manufacturing costs. Additionally, the European market contended with the repercussions of a weakened PMI index, further affecting market dynamics. In the last month of Q3, the surge in demand could be attributed to the worldwide increase in demand from the textile and paper industry, affecting PAM market fundamentals. Nevertheless, the market benefited from the cost-effective feedstock Acrylonitrile, which helped stabilize manufacturing expenses.
For the Quarter Ending June 2023
North America
In the US market, the overall market fundamentals of Polyacrylamide (PAM) remained moderate during the entire second quarter of 2023. As there was not a major decrement in the price of PAM during the entire Q2, a minute decrement of approximately (0.7%) has taken place. In the first month of Q2, there was a bit surge in demand from the water treatment plant in the international market, resulting in high container exports, consequently opening the doors for the suppliers to increase their profit margin. However, in May, despite this, a consistent inflow of material left buyers hesitant due to high inventories as demand recovery fell short of expiation during this month. A sluggish trading activity has been observed for this commodity. Additionally, In May, the debt crisis also occurred due to the simultaneous downfall of major banks in the USA, causing a drastic effect on the US marketing condition and provoking the buyers to hold back from placing large orders. However, in June, the PAM market remained stable with moderate supply-demand fundamentals and showcased a growing market fundamentals on the back of surging demand from water treatment plants again.
Europe
In the European market, Polyacrylamide (PAM) has experienced a noticeable inclining trend in the second quarter of 2023 with an increment of approximately (15%). At the beginning of Q2, the price of PAM showcased an inclined price trend in the European region, fueled not only by the wastewater treatment industry but also by the Enhanced Oil Recovery (EOR). This dual surge in consumption has led to a significant upward trend in PAM prices, impacting both the US and European markets. Coming to the second month of Q2, the market fundamentals remained moderate as businesses had already procured a substantial amount of the product in the previous month. Furthermore, in the month of May, there was again a surge in demand from the wastewater treatment plant in European countries, including Germany, France, and the United Kingdom, which have witnessed an upswing in the inquiries and orders for PAM. However, suppliers in the region faced difficulties in meeting this increased demand, resulting in a price hike. As the European region seeks to deal with rising levels of pollution and make use of improved technology in the field, the proposals made by the European Commission to update the bloc's Urban Wastewater Treatment Directive from 1991 are currently making their way through the European Parliament. Under these proposals, polluting sectors might be targeted.
APAC
In the Asia-Pacific region, the market of Polyacrylamide (PAM) displayed mixed sentiments during the second quarter of 2023. At the beginning of the quarter, the market of PAM witnessed a decline in price trends. This drop in price occurred in the wake of higher inventories in the region, and overall export activities from China to other Asian markets remained low. The spot market continued to observe a slower pace. Despite the lower spot price offers, petitions from the enterprises remained low. However, in May, there was a bit surge in demand from the water treatment plant in the international market, resulting in high container exports, consequently opening the doors for the suppliers to increase their profit margin. Again, in June, a Slump in purchasing activities of Chinese PAM was observed with it; there was a sudden drop in the PAM price by approximately (20%) during the month of June as Industry encountered difficulties in its commodity orders. Exchanges stayed tested as buying exercises stayed at their lower hand. However, in the entire Q2 time period, the PAM market showcased approximately (15%) decrement.
For the Quarter Ending March 2023
North America
Based on our analysis of the US market for the first quarter of 2023, it is evident that Polyacrylamide (PAM) prices have experienced a sharp increase due to the rise in demand from downstream industries and feedstock cost pressures. Despite domestic production operating rates remaining firm, inventory levels have dropped. This can be attributed to the increase in feedstock Acrylamide prices, which has further compounded the cost pressure on PAM. However, demand from downstream water treatment and papermaking industries has remained firm, with consumption rates from drilling fluid additives also strengthening. Encouragingly, market participants have not reported any plant shutdowns. Thus, after the conclusion of the first quarter of 2023, PAM (Anionic Grade) prices in the US were assessed at USD 3020 per MT.
APAC
Polyacrylamide (PAM) prices have increased sharply in the Chinese market during the first quarter of 2023 owing to increased demand from downstream industries and rising feedstock cost pressure. In terms of domestic production, operating rates remained firm; however, inventory levels dropped in the domestic market as well as in ports. Meanwhile, feedstock Acrylamide prices have increased, culminating in an increase in cost pressure over PAM. China, the largest exporter of PAM, faced constrained inventory levels resulting in limited exports. Demand from downstream Water treatment coupled with the papermaking industry has been firm, while the consumption rates from drilling fluid additives have been stable. Thus, as of March 2023, PAM prices were assessed at USD 1890 per MT.
Europe
In the first quarter of 2023, the German market witnessed a substantial rise in Polyacrylamide (PAM) prices due to increased demand from downstream industries and a surge in import prices reaching European shores. Additionally, market participants have reported weak material availability in the domestic market, while imports have been sluggish due to shortages of labor disrupting logistics on key ARA ports. However, demand from downstream water treatment and papermaking industries remains firm, while consumption rates from drilling fluid additives have remained stable. Thus, after the conclusion of the first quarter of 2023, PAM prices (Anionic Grade) were assessed at USD 3400 per MT.
For the Quarter Ending December 2022
North America
The market prices of Polyacrylamide moved in a downward direction in the North American market during the fourth quarter of 2022, as per ChemAnalyst Research Team Data. The supply of feedstock Acrylamide was higher than the already current stocks in the market with the traders and suppliers during this quarter. As reported, the inquiries of downstream paints and coatings in the USA market decreased with lower intakes and fluctuation in the production rates during October and December. Meanwhile, Polyacrylamide prices in November made a minor improvement in comparison to October levels; however, it had a limited impact on the overall market sentiment during the quarter.
APAC
In the fourth quarter of 2022, Polyacrylamide prices have demonstrated mixed market sentiments. The prices first escalated in the Chinese domestic market. The resurgence of new COVID cases has impacted transportation and logistics across the nation. Furthermore, towards the end of Q4, the prices of PAM have reduced amid sufficient inventory levels and sluggish procurement from the downstream industries. In terms of raw materials, the acrylonitrile market and acrylic acid have also continued to decline and offered negative cost support to the price realizations of Polyacrylamide. The ChemAnalyst database has shown that Polyacrylamide Anionic Grade FOB Qingdao prices were settled at USD 1450 per ton in December.
Europe
Prices of Polyacrylamide witnessed mixed sentiments in the European market during the fourth quarter of 2022. During the first two months, Polyacrylamide prices increased due to limited availability and increased demand dynamics. In terms of domestic production, operating rates remained under check as energy prices continued to climb higher. The supply chain in Europe was mainly disrupted amid prolonged port congestions and vessel bunching, which halted the supply flow of Polyacrylamide and, thus, limited the product availability in the regional market. Overall, consumption from the downstream wastewater treatment and allied industries has increased, and purchasing of the material and queries have also been firm. Although, during the last month, Polyacrylamide prices dropped due to sufficient inventory level and stable to weak demand. The cheap Asian imports further weighed down the prices of Polyacrylamide.
For the Quarter Ending September 2022
North America
The prices of Polyacrylamide declined in the USA market during the third quarter of 2022, with cost ranging at USD 2252/tonne Polyacrylamide Anionic Grade FOB Texas with a quarterly decline of 11.1% as per recorded by ChemAnalyst pricing team data. The demand from the downstream mining processing market and for oil recovery processes is decreasing, relieving pressure from the prices of Polyacrylamide in the regional market. The product inventories were increasing, with high product stockpiling affecting the market sentiments. Solenis increased the prices of Polyacrylamide in the previous quarters; however, no such price increase was announced during the third quarter.
Asia- Pacific
In the third Quarter of 2022, Polyacrylamide prices remained in the negative territory in the APAC region. The decline in demand from the downstream Wastewater, Paper, and Pulp industries has deteriorated the market sentiments of Polyacrylamide in the domestic region of China. On the upstream cost front, the Acrylonitrile and Acrylic Acid prices have tumbled, diminishing the manufacturing costs of PAM. Furthermore, the manufacturing PMI has dropped and was observed as 49.5 in the mid-third quarter. The market participants have reported that the procurement from the international market was sluggish, leading to overflowing inventories among the manufacturers. The PAM has been traded at cheaper rates to clear off the oversupplies. Thus, Polyacrylamide Anionic Grade FOB Qingdao was assessed at USD 1540 per tonne in Q3-end.
Europe
Prices of Polyacrylamide have continued their bearish rally in the European market during the third quarter of 2022, bolstered by the weak feedstock Acrylamide prices. Although, the domestic cost of production remained high amid increased energy and operating cost, resulting in weaker output rates. Additionally, cheap imported raw material from the Asian market, along with the ease in the freight charges from Asia to Europe, has weighed down the prices of Polyacrylamide across the regional market. Despite this, demand from downstream wastewater treatment has stable to firm. Moreover, the manufacturer has a sufficient inventory level to cater to the overall demand. Hence, in Germany, Polyacrylamide Anionic Grade FD Hamburg prices were assessed at USD 2719/MT during September.
For the Quarter Ending December 2021
North America
In USA, the market showcased a mixed sentiment followed by the slight fluctuations in the prevalent supply and adequate demand. Because of ease in supply of feedstocks resulted normalcy in plant operating rates. Only on the basis to block the inventory pile, buyers have opted wait and see approach. In December, demand further loomed owing to the slowdown of market due to holiday season. Thus, fourth quarter of 2021 in North America ended up with decrease in prices and weak demand of polyacrylamide. However, manufacturers remained concerned about rising inflationary pressure, which was denting their profit margins.
Asia
Polyacrylamide (PAM) prices have jumped as a combination of a cessation of manufacturing services in China in third quarter of 2021. Midst of it, an extended rise in energy prices, puts an unsustainable strain on imports to India. Moreover, dealers claimed that material shortage forced them to adjust their offers in order to maintain their margins. In China, the boom was specifically because of the multiple demand for the product from water treatment industries thanks to the stringent regulatory movements in opposition to waste-water disposal and growing problem toward the environment.
Europe
During Q4 of 2021, European market showed similar sentiments as it was in previous quarter of 2021. Availability of feedstock acrylamide remained nearly same as per previous quarter & utmost demand of PAM from downstream resulted in good growth of PAM market. Along with it, stringent administration, natural gas crisis and environmental concern played a vital role for this solid market growth. Demand of PAM remained stable from majority of end use industries and downstream industries such as pulp and paper, textiles, etc were the reasons for these fluctuations in market prices.
For the Quarter Ending September 2021
North America
During Q3 of 2021, the prices of Polyacrylamide reported significant rise in the North American region backed by the soaring production cost. In the US market, demand for Polyacrylamide remained bullish from the downstream industries including water treatment chemicals, paper making, and mining. The supply of Polyacrylamide was tight in Q3 sue to shortages of the key raw materials and reduced inventory levels. Producers found it difficult to absorb the surges in overall manufacturing cost due to the tightening of raw material supply and escalating energy, packaging and transportation costs
Asia
The Asian Polyacrylamide price curve moved upwards in 3rd quarter of 2021 due to the increased demand from the downstream sectors and high pricing environment. In India, the prices of Polyacrylamide remained firm, driven by the global uptrend on the raw material front. Trade momentum remained muted amid volatile raw material prices in July and pressured demand fundamentals. The local supply remained tight, as traders were sidelining themselves from making advanced purchases and raising demand only on a requirement basis. Solenis, a leading global producer, announced to increase prices on all pulp & paper and water treatment chemicals including Polyacrylamide across the Asia Pacific region with effective from October 1, 2021.
Europe
The domestic market price of Polyacrylamide rose effectively in the European region during Q3 of 2021. High prices and tight availability of the key raw materials materials along with other factors including container shortage, soaring freight costs, etc. led to the increased prices of PAM across the region in Q3. Demand from the downstream sectors remained strong in this quarter and several producers opted to increase their offered prices multiple times within Q3 to retain their margins.
For the Quarter Ending June 2021
North America
Prices of Polyacrylamide (PAM) increased effectively during this quarter across North America region, supported by firm offtakes from the downstream sectors. The demand for Polyacrylamide remained firm throughout the quarter, taking support of firm offtakes from paper & pulp and water treatment sector. In addition, rise in feedstock Acryl Amide prices in USA also influenced the prices of PAM in the meantime. Moreover, due to inadequate availability, price of upstream Acrylonitrile kept increasing which affected the prices of several other downstream products including PAM.
Asia
In Asia, acute shortage of feedstock Acrylamide during last quarter remained persistent till the end of April across the region, which led to an extreme rise in its prices, especially in China. On the demand perspective, demand for Polyacrylamide remained consistently firm in China during this timeframe, however prices witnessed some fluctuation due to the volatility in export demand. Meanwhile in India, prices kept fluctuating amid resurgence of pandemic in the country, as the demand reduced effectively during the month of May. However, prices of feedstock Acrylamide remained high throughout the quarter in India, which also supported the buoyancy in PAM prices in the country.
Europe
Supply shortage of upstream Acrylonitrile (ACN) made its price to rise effectively, which also supported the downstream product prices. However, the supply comparatively improved in the month of February and March, but it still hovered around a very high value. Robust demand from downstream manufacturers amidst tight supply activities was the major reason behind this price hike. Traders anticipated a further ease in prices, as the supply was improving continuously.
For the Quarter Ending March 2021
North America
Amid stable demand from domestic downstream sectors, North America faced shortage of PAM and its feedstock materials in the January-February period. This shortage was led by freezing winter and disruptions done by the US storm in past several months. Following the shortage in the market, Solenis, a major global player of PAM in the USA, announced to increase its PAM prices in Europe, Middle East and Asian region. Meanwhile, SNF in early February announced a huge investment plan of USD 300 million to setup a new powder-grade PAM manufacturing facility of 30,000 MT/year capacity in Louisiana USA. This expansion is expected to improve the supply crisis across the region.
Asia
Demand for PAM in the Asian market remained consistently strong throughout the quarter. Tight supply across the region, forced the prices to rise effectively. Reduced imports from Europe and USA due to container shortages also effectively impacted the prices of feedstock Acrylamide. In India, beside of healthy improvement in demand from the domestic market, industrial activities remained rigidly low which reduced the production of PAM and feedstock Acrylamide.
Europe
During Q1 2021, Europe witnessed price hike in the upstream Acrylonitrile (ACN) across the region. The reason behind this price hike was disrupted supply chain from the US and some inactive manufacturing plants due to freezing weather conditions across countries like Germany. Limited availability of feedstock Acrylonitrile thus created PAM shortage and supported its prices in the regional market. In addition, Ascent ACN plant in Europe struggled to become operational again since Q4 2020. The supply across Europe is expected to improve once the plant becomes operational again.
