Acrylamide Market in the US Poises for Growth Amidst Strong Demand for Water Treatment Chemicals

Acrylamide has maintained stable market sentiments in the United States this year, primarily driven by moderate demand from downstream water treatment and other end-use industries. Market trends indicate a decrease in the procurement frequency of the product due to minimal water usage in various industries. Acrylamide finds its major application in flocculation, a wastewater treatment method, while other sectors such as paper and pulp, chemical, petrochemical, and textiles also utilize the product.

The water treatment industry has experienced significant growth due to increased industrial demand for water. Various sectors, including power, steel, mining and metallurgy, petrochemicals, oil and gas, food and beverages, as well as textile and dyes, require large quantities of water in their processes.

Since the beginning of 2023, the overall market fundamentals for Acrylamide have remained in equilibrium. In the first quarter, prices fluctuated slightly, with an overall increase of only 0.9% from January to March. The prices in January, February, and March for Acrylamide (Powder) CFR USGC were recorded as USD 1596/MT, USD 1648/MT, and USD 1610/MT, respectively. Demand from the water treatment industry typically arises during the summer season, while the domestic manufacturing units tend to operate at slower production rates during the winter season, leading to suppressed demand for Acrylamide.

As of April 2023, the region's market prices for Acrylamide have remained unchanged, standing at USD 1600/MT CFR USGC. The demand outlook was anticipated to improve this month in the region, but the sudden collapse of Silicon Valley and Signature Bank has raised the threat of a new banking crisis.

According to the ChemAnalyst database, market sentiments for Acrylamide are expected to observe an uptrend in the US markets due to robust demand for water treatment chemicals during the summer season. However, there is an anticipation of inventory shortages due to higher offtakes in the US market.