Polyacrylamide (PAM) Prices

For the Quarter Ending June 2023

 

North America: USA

 

In the US market, the overall market fundamentals of Polyacrylamide (PAM) remained moderate during the entire second quarter of 2023. As there was not a major decrement in the price of PAM during the entire Q2, a minute decrement of approximately (0.7%) has taken place. In the first month of Q2, there was a bit surge in demand from the water treatment plant in the international market, resulting in high container exports, consequently opening the doors for the suppliers to increase their profit margin. However, in May, despite this, a consistent inflow of material left buyers hesitant due to high inventories as demand recovery fell short of expiation during this month. A sluggish trading activity has been observed for this commodity. Additionally, In May, the debt crisis also occurred due to the simultaneous downfall of major banks in the USA, causing a drastic effect on the US marketing condition and provoking the buyers to hold back from placing large orders. However, in June, the PAM market remained stable with moderate supply-demand fundamentals and showcased a growing market fundamentals on the back of surging demand from water treatment plants again.

 

Europe: Germany

 

In the European market, Polyacrylamide (PAM) has experienced a noticeable inclining trend in the second quarter of 2023 with an increment of approximately (15%). At the beginning of Q2, the price of PAM showcased an inclined price trend in the European region, fueled not only by the wastewater treatment industry but also by the Enhanced Oil Recovery (EOR). This dual surge in consumption has led to a significant upward trend in PAM prices, impacting both the US and European markets. Coming to the second month of Q2, the market fundamentals remained moderate as businesses had already procured a substantial amount of the product in the previous month. Furthermore, in the month of May, there was again a surge in demand from the wastewater treatment plant in European countries, including Germany, France, and the United Kingdom, which have witnessed an upswing in the inquiries and orders for PAM. However, suppliers in the region faced difficulties in meeting this increased demand, resulting in a price hike. As the European region seeks to deal with rising levels of pollution and make use of improved technology in the field, the proposals made by the European Commission to update the bloc's Urban Wastewater Treatment Directive from 1991 are currently making their way through the European Parliament. Under these proposals, polluting sectors might be targeted.

 

APAC: China

 

In the Asia-Pacific region, the market of Polyacrylamide (PAM) displayed mixed sentiments during the second quarter of 2023. At the beginning of the quarter, the market of PAM witnessed a decline in price trends. This drop in price occurred in the wake of higher inventories in the region, and overall export activities from China to other Asian markets remained low. The spot market continued to observe a slower pace. Despite the lower spot price offers, petitions from the enterprises remained low. However, in May, there was a bit surge in demand from the water treatment plant in the international market, resulting in high container exports, consequently opening the doors for the suppliers to increase their profit margin. Again, in June, a Slump in purchasing activities of Chinese PAM was observed with it; there was a sudden drop in the PAM price by approximately (20%) during the month of June as Industry encountered difficulties in its commodity orders. Exchanges stayed tested as buying exercises stayed at their lower hand. However, in the entire Q2 time period, the PAM market showcased approximately (15%) decrement.

 

For the Quarter Ending March 2023

 

North America

 

Based on our analysis of the US market for the first quarter of 2023, it is evident that Polyacrylamide (PAM) prices have experienced a sharp increase due to the rise in demand from downstream industries and feedstock cost pressures. Despite domestic production operating rates remaining firm, inventory levels have dropped. This can be attributed to the increase in feedstock Acrylamide prices, which has further compounded the cost pressure on PAM. However, demand from downstream water treatment and papermaking industries has remained firm, with consumption rates from drilling fluid additives also strengthening. Encouragingly, market participants have not reported any plant shutdowns. Thus, after the conclusion of the first quarter of 2023, PAM (Anionic Grade) prices in the US were assessed at USD 3020 per MT. 

 

APAC

 

Polyacrylamide (PAM) prices have increased sharply in the Chinese market during the first quarter of 2023 owing to increased demand from downstream industries and rising feedstock cost pressure. In terms of domestic production, operating rates remained firm; however, inventory levels dropped in the domestic market as well as in ports. Meanwhile, feedstock Acrylamide prices have increased, culminating in an increase in cost pressure over PAM. China, the largest exporter of PAM, faced constrained inventory levels resulting in limited exports. Demand from downstream Water treatment coupled with the papermaking industry has been firm, while the consumption rates from drilling fluid additives have been stable. Thus, as of March 2023, PAM prices were assessed at USD 1890 per MT. 

 

Europe

 

In the first quarter of 2023, the German market witnessed a substantial rise in Polyacrylamide (PAM) prices due to increased demand from downstream industries and a surge in import prices reaching European shores. Additionally, market participants have reported weak material availability in the domestic market, while imports have been sluggish due to shortages of labor disrupting logistics on key ARA ports. However, demand from downstream water treatment and papermaking industries remains firm, while consumption rates from drilling fluid additives have remained stable. Thus, after the conclusion of the first quarter of 2023, PAM prices (Anionic Grade) were assessed at USD 3400 per MT.