In May 2024, Acrylamide Prices Surge Amid Steady Demand and Supply Challenges
In May 2024, Acrylamide Prices Surge Amid Steady Demand and Supply Challenges

In May 2024, Acrylamide Prices Surge Amid Steady Demand and Supply Challenges

  • 14-Jun-2024 3:11 PM
  • Journalist: Peter Schmidt

Texas (USA): Acrylamide prices have seen a further uptick in the US market in May 2024 as the demand outlook has remained steady and supply challenges continue to persist. Prices were positively influenced by industrial and household activities in the region, along with increased demand in the water treatment sector for the upcoming summer season. However, demand for Acrylamide from downstream textile and paper industries was lackluster.

On the cost side, the influence of upstream acrylonitrile prices continued to rise this month. However, concerns regarding input costs eased throughout May as crude oil demand continued to decline while supply remained high due to seasonal trends. Refining margins in Asia and the US hit three-year lows in May, reflecting weak demand. Global onshore oil inventories increased for the second consecutive month in May due to the imbalance between weak demand and strong supply.

The supply of Acrylamide has been facing challenges due to delayed shipments and shortages in the domestic market. A significant portion of Acrylamide arrives from Asia in the US market. Manufacturers operated at their usual pace while some underwent maintenance shutdowns from time to time in May 2024. Cost-wise, support for the Acrylamide market from raw materials remained stable while crude oil remained weak.

Furthermore, freight charges continued to climb sharply throughout the month due to early-month GRIs. Unseasonal demand increases and capacity constraints due to Red Sea diversions are causing congestion in regions like the West Mediterranean and South Asia. Despite the addition of new vessels, late arrivals and port omissions continue as carriers try to maintain schedules at major hubs. Rising demand, tight capacity, and delays are pushing ocean rates higher from their elevated levels in April. An unexpected surge in demand for Acrylamide from Asia in May, driven by restocking in Europe and the early peak season on the transpacific route, has exacerbated congestion, leading to shortages of empty equipment, rolled containers, and increased rates.

The paper and textile industries downstream saw a modest demand for Acrylamide as business confidence stayed subdued, leading to a decline in inquiries for Acrylamide from the packaging sector in the local market. U.S. textiles and apparel exports decreased by 2.84% to USD 7.619 billion in January-April 2024, down from USD 7.842 billion in the same period of 2023. Exports to China, Guatemala, and Mexico increased, while shipments to other countries, including Canada and the UK, declined. The decline was observed across categories, with decreases in apparel, fabric, and yarn exports. As a result, the consumption of Acrylamide has further declined in this segment. On the other hand, demand from the water treatment sector remained robust. Companies involved in this segment have registered profits due to robust demand for their water and wastewater treatment products such as Acrylamide and services.

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