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
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.
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.
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.
