US’s Acrylamide Prices See Slump in January 2024 Amid Tepid Demand

Texas, USA: The US Acrylamide market registered yet another slump in the first month of 2024 as weak demand from various downstream and terminal use sectors continued. The consumption rate of Acrylamide in the downstream water treatment and paper-making industries has remained low. Amid freezing weather in various parts of the USA, business operations were hampered, and numerous manufacturing plants were temporarily closed for the same reason, thereby leading to decreased procurement of chemicals such as Acrylamide. Furthermore, the downstream paper-making sector also noted a downturn this month. The American Forest & Paper Association (AF&PA) reported that in 2023, demand for packaging paper in the US dropped by 2% compared to 2022. The 2% decrease to 2.70 million tons occurred alongside an anticipated 4-5% year-over-year decline in actual box shipments in the US. This decline reflects the overall slowdown in demand for US packaging, which has persisted for over a year due to packaging end-users reducing their inventory levels, consequently leading to decreased consumption of Acrylamide.

As of January 2024, the assessed prices of Acrylamide Powder CFR USGC were USD 1287/MT, a slight decrease of 1.0% from December 2023’s USD 1300/MT. In the last quarter of 2023, the prices of Acrylamide noted fluctuations due to supply disruptions and other geopolitical factors. Also, the shipping time increased due to ongoing supply disruptions in the Middle East, leading to containers being diverted from the Cape of Good Hope, thereby increasing the delivery time of various cargo, including chemicals such as Acrylamide from Asian markets to the US and Europe.

However, there were some signs of improvement in various economic factors. In the last weeks of 2023, the U.S. economy maintained its robust growth, marking a year characterized by low unemployment, subdued inflation, and the absence of the widely anticipated recession. According to the Commerce Department, the GDP, adjusted for inflation, expanded by a 3.3% annual rate in Q4 2023. From the end of 2022 to the end of 2023, GDP saw growth of 3.1%, a notable increase from the previous year's rate of less than 1%, surpassing the average growth rate of the five years leading up to the pandemic.

According to ChemAnalyst pricing intelligence, Acrylamide prices are anticipated to improve in the US market as business operating conditions have improved in the region, and consumer spending has also noted a further incline. Increased prices of upstream raw materials are also anticipated to provide positive cost support for Acrylamide. Improved supply chain operation and steady growth in demand are presumed to drive Acrylamide prices in an upward trajectory.