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.
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.
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.
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.
