The downstream market demand is strong and the polyacrylamide market has broad prospects

Polyacrylamide, abbreviated as PAM in English, is a linear polymer. Polyacrylamide has good flocculation, adhesion, resistance reduction, and thickening properties, and is used in many fields such as medicine, food, papermaking, petrochemicals, and sewage treatment. Depending on the needs, polyacrylamide products come in various forms such as glue, latex, powder, and flakes.

The upstream of the polyacrylamide industry chain is mainly the raw material supply layer. Acrylonitrile is an essential raw material for the production of polyacrylamide. With technological advancement and rising market demand, my country’s acrylonitrile production has increased year by year, laying a raw material foundation for the development of the polyacrylamide industry. However, the upstream of acrylonitrile is the petrochemical industry, which is greatly affected by international crude oil prices, causing price fluctuations in the polyacrylamide industry.

According to the “2023-2028 China Polyvinylamide Industry Market In-depth Research and Development Prospects Forecast Report released by the Industrial Research Center, The polyacrylamide industry has high entry barriers, and there are barriers in terms of capital, technology, and talent. The production process of polyacrylamide is long and complicated. It requires high quality of equipment and raw materials, and requires the training of dedicated personnel for production operations. Polyacrylamide will easily deteriorate after long-term storage and requires higher storage and transportation conditions. At the same time, polyacrylamide has a wide range of downstream fields and different market demands. The development of products that meet the needs of different customers requires high requirements for corporate technology reserves, professionalism of R&D personnel, and industry experience.

Polyacrylamide has a wide range of downstream applications, including oil and gas extraction, water treatment, paper and pulping, mineral washing and other fields. Among them, oil and gas extraction and sewage treatment have higher demand for polyacrylamide, accounting for about 80% in total. The oil and natural gas extraction industry is the foundation of the national economy. The state strongly supports the development of the oil and gas extraction industry and drives the development of the polyacrylamide industry. At the same time, the country vigorously promotes environmental protection policies, encourages the development of the sewage treatment industry, assists sewage treatment plants in various regions to put into operation, expands the sewage treatment market, and increases the market demand for polyacrylamide.

my country’s polyacrylamide industry has sufficient production capacity to meet domestic demand and export. China Customs data shows that my country’s polyacrylamide industry export volume in 2022 will be 235,800 tons. However, my country’s polyacrylamide industry started late, and there is still a certain gap between it and foreign advanced enterprises in terms of technology and product quality. At present, my country’s polyacrylamide products mainly serve the mid-to-low-end market, and high-end products still rely on imports.

Industry analysts said that the downstream market demand for polyacrylamide is strong and the market prospects are bright. Polyacrylamide companies should increase investment in R&D and talent training, introduce foreign advanced technologies, strengthen technological innovation, improve technical levels, improve product quality and production efficiency, develop high-end products that meet market demand as soon as possible, and promote the localization of the polyacrylamide industry process.