Quarterly Update on Global Polyacrylamide (PAM) Market
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.
