SunSirs: Domestic Polyacrylamide Market Sees Weak Consolidation in July

Market Trends:

According to the SunSirs commodity market analysis system, the domestic market for polyacrylamide (CPAM—cationic, molecular weight of 12 million, ionic degree of 10-30) experienced a weak consolidation trend in July. On the 29th, the prevailing market price was approximately 13,960 RMB/ton, representing a 1.41% decline from the 14,160 RMB/ton recorded at the beginning of the month.

Market Analysis

The production of polyacrylamide relies heavily on upstream raw materials such as acrylonitrile. Acrylonitrile market prices fluctuated in July, initially falling before rising; as of July 29, the average price stood at 10,533.33 RMB/ton, a 4.46% increase from the 10,083.33 RMB/ton recorded on July 1. Currently, major manufacturers in East China are operating at low capacity; furthermore, with Liaoning Kingfa Technology planning to shut down one of its acrylonitrile production lines—which has a total capacity of 260,000 tonnes—for maintenance for approximately 20 days in mid-August, expectations point to a further tightening of supply.

On the demand side, downstream consumption remains weak, and the volume of sewage sludge generated during the rainy season has fallen short of expectations. Procurement by sludge disposal enterprises in the papermaking and chemical sectors has contracted, resulting in ample spot market supply; consequently, factories have proactively lowered their quotes to boost sales. Meanwhile, traders are seeing slow inventory turnover and are cutting prices to offload stock and recover capital, fueling bearish sentiment in the market.

Market Outlook

On the cost side, the rising acrylonitrile market is providing support for polyacrylamide prices. On the demand side, with high temperatures persisting throughout August and a lack of positive market drivers, downstream demand—currently in the off-season—is unlikely to rebound quickly in the short term; the situation of high corporate inventories and ample spot supply is expected to continue. Consequently, the polyacrylamide market is projected to remain range-bound in August.

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