US Acrylamide Prices Experience Boost Amid Rising Demand from Water Treatment
US Acrylamide Prices Experience Boost Amid Rising Demand from Water Treatment

US Acrylamide Prices Experience Boost Amid Rising Demand from Water Treatment

  • 21-May-2024 2:16 PM
  • Journalist: Jai Sen

Texas, USA: In the last few weeks, the US Acrylamide market exhibited improvement due to an increase in consumer demand. Acrylamide prices were positively supported in the domestic market due to heightened industrial and household activities in the region, alongside increased demand in the water treatment sector for the upcoming summer season. However, the demand for Acrylamide from the downstream textile and paper industry was underwhelming.

On the cost side, the cost pressure on Acrylamide from the upstream acrylonitrile increased this month as prices rose. However, throughout April, crude oil prices decreased, and concerns regarding input costs eased. International crude oil declined throughout the month, primarily due to an unexpected surge in US crude oil inventories, subdued demand forecasts, and a reduction in conflict-related risks.

Looking at the supply chain, in the first half of the month, ocean freight rates from Asia to North America dropped from their peak in February, and prices to North Europe and the Mediterranean fell by 25% since January. However, in the second half, the prices rose marginally from Asia to the Mediterranean and North Europe, only to fall again towards the end of the month. Additionally, the ocean container market has established a new operational pattern to circumvent the Red Sea region due to ongoing Houthi attacks.

The downstream paper and textile industries witnessed moderate demand for Acrylamide as business confidence remained weak, resulting in a decrease in inquiries for Acrylamide from the packaging industry in the domestic market. According to the US Department of Commerce's Office of Textiles and Apparel, apparel exports to the US market experienced a significant decline from January to March of this year, dropping by 17.68%. Similarly, combined shipments of textiles and apparel also fell by 17.37% during the same period. Despite a decrease in inflationary pressures in the US, apparel exports have been steadily declining in recent months as retailers and brands in the country reduce their imports of clothing. As a result, the consumption of Acrylamide has noted a further decline in this segment.

On the other hand, the demand for Acrylamide from the water treatment sector remained robust. Xylem, a global water technology provider, upgraded its yearly profit projection due to strong demand for its water and wastewater treatment products and services. Xylem also estimated annual revenue of around USD 8.5 billion, up from its earlier forecast of USD 8.4 billion to USD 8.5 billion. In the first quarter, the company's total revenue surged by 40.4% to USD 2.03 billion, surpassing expectations of USD 2 billion. Sales from its water infrastructure division, which produces water and wastewater pumps, climbed by 40% to USD 574 million. These figures suggest a strong demand for chemicals in the water treatment segment, including Acrylamide.

According to the ChemAnalyst database, the prices of Acrylamide are anticipated to rise in the coming weeks, backed by increased consumption in the downstream industries amid rising temperatures.

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