German Acrylamide Price Faces Downturn In January 2024 Amidst Weak Consumer Demand
German Acrylamide Price Faces Downturn In January 2024 Amidst Weak Consumer Demand

German Acrylamide Price Faces Downturn In January 2024 Amidst Weak Consumer Demand

  • 09-Feb-2024 1:53 PM
  • Journalist: Patrick Knight

Hamburg, Germany: The Acrylamide market in Germany experienced a further downturn in January 2024 due to low consumer demand, largely attributed to decreased demand from downstream industries, particularly in water treatment. In the current market conditions, the reduced frequency of purchasing Acrylamide is linked to lower water usage across multiple sectors. Prices dropped by USD 37/MT in January from USD 1240/MT in December 2023. As of January 2024, the prices of Acrylamide FOB Hamburg were assessed at USD 1203/MT.

However, on the cost front, the manufacturing costs of Acrylamide increased throughout the month as the prices of feedstock Acrylonitrile and upstream Propylene rose. The European propylene markets experienced a turbulent beginning to the new year, with strong demand for restocking after the seasonal downturn in December clashing with limited supply caused by outages and distribution disruptions in both inland and coastal markets, causing the production costs of Acrylamide to soar. Decreased production rates and both scheduled and unexpected shutdowns continue to exert significant pressure on the domestic supply of European propylene, eventually impacting the profitability of Acrylamide manufacturers. Production reductions across the continent are restricting consumer access to the material in downstream polymer and resins sectors, including Acrylamide.

According to surveys, the decline in Germany's manufacturing sector, representing approximately one-fifth of the country's economy, showed signs of improvement in January. The final Purchasing Managers' Index (PMI) for manufacturing, compiled by HCOB, climbed to 45.5 in January, up from 43.3 in December. This marks the sixth consecutive monthly increase, although the index remains well below the 50-point threshold, suggesting that contraction in industrial activities persists due to weak demand.

Additionally, essential Asian imports to Europe, such as car parts, engineering equipment, chemicals, and toys, are experiencing delays in arrival due to container shippers redirecting vessels around Africa instead of using the Red Sea and Suez Canal. The redirection follows recent attacks by Yemen's Houthis. Germany's chemicals sector, ranked as the country's third-largest industry following automotive and engineering, boasts annual sales of approximately $282 billion. Around one-third of its imports from outside Europe are sourced from Asia, highlighting the sector's significant dependence on the Asian market.

According to the ChemAnalyst database, the German Acrylamide market is anticipated to observe stability in the upcoming weeks as fluctuations in raw material prices could ease, whereas domestic consumption and growth in overseas orders might prompt positive market sentiments for Acrylamide, putting it on an upward trajectory.

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