Chemical Profile: Acrylamide

11 April 2005 00:01  [Source: ICB Americas]

If you're looking for a supplier or need to source other products, go to the OPDsearch.com database of purchasing information for chemicals and chemical services.

ACRYLAMIDE

April 11, 2005

Producer	Capacity
Chemtall, Riceboro, Ga.	143
Ciba Specialty Chemicals, Suffolk, Va.	33
Cytec Industries, Fortier, La.	90
Nalco, Garyville, La.	35
Total	301

*Millions of pounds per year. Commercial production is by hydration of acrylonitrile to form acrylamide monomer, which is supplied to the market as a 50 percent aqueous solution. A small amount of crystalline acrylamide is imported, but solution is favored on a cost basis and because of toxicity and safety concerns in handling the solid product. In 2001, Nalco Chemical’s parent company, Suez, announced the creation of Ondeo, an expansive water-solutions group comprised of Suez’s four water-related companies, and Nalco Chemical changed its name to Ondeo Nalco. When Suez sold the company in late 2003 Ondeo Nalco became Nalco Company. Upon going public the following year, the name was expanded to Nalco Holding Company. Chemtall Inc. is an operating unit of SNF Inc., the US subsidiary of SNF Floerger SA (France). Profile last published 5/6/02; this revision, 4/11/05.

PRICE

Historical (1999Ð2004): High, 80c. per pound, 50 percent solution, 100 percent basis, bulk, f.o.b. works; low, 80 c. per pound, same basis. Current: 92 c. per pound, same basis.

GROWTH

Historical (1999Ð2004): 4.7 percent per year; Future: 3.5 percent per year through 2004.

DEMAND

2003: 220 million pounds; 2004: 230 million pounds; 2008: 265 million pounds, projected. Demand equals production plus imports (2003: 7 million pounds; 2004: 7 million pounds) less exports (2003: 22 million pounds; 2004: 19 million pounds).

USES

Polyacrylamide (PAM), 94 percent (for water treatment, 55 percent; pulp and paper production, 23 percent; mineral processing, 8 percent; enhanced oil recovery, 4 percent, miscellaneous, 4 percent); N-methylolacrylamide (NMA) and other monomers, 6 percent.

MARKET PERSPECTIVE

Polyacrylamide-based flocculants consume all but about 6 percent of acrylamide monomer. Water treatment is the largest market for polyacrylamide in the US, accounting for 55 percent of PAM demand. This is driven by increased urbanization and industrialization of underdeveloped regions. The largest use of PAM in this category is as dewatering aids for sludges in the treatment of effluents from municipal wastewater treatment plants (e.g., sewage treatment) and industrial processes. Polyacrylamides are also consumed as organic flocculants in feed-water treatment for industrial purposes. PAM consumption for water treatment is projected to grow at an average annual rate of 3.5 percent through 2008. The largest volumes of polyacrylamide consumed by paper mills are used to flocculate fillers, fibers and pigments at the headbox of the papermachine. This application is commonly referred to as a retention and drainage aid and is expected to grow at 3 percent over the next four years. Last year the US paper industry produced more than 100 million tons of paper and paperboard for the first time since 2000. Papermaking accounts for 23 percent of PAM demand.
Polymer flooding, a means of maximizing oil output from an existing ma-ture well, was a substantial market in the mid 1980s, but declined thereafter with oil priced below $30 per barrel. Over the past couple of years the price of crude oil has tatken off again, topping $57 per barrel in early April, and PAM demand has quickly returned to about 4 percent of total demand, growing at 7 percent annually.

OUTLOOK

Although there is considerable overcapacity in the marketplace, no rationalization is likely, as all producers consume the majority of their acrylamide production in manufacturing higher-value polyacrylamides. Acrylonitrile and its precursors are in good supply and stable in price, which should result in a correspondingly stable acrylamide market. AcrylamideÕs growth prospects depend largely on polyacrylamides and their primary markets in water treatment and the paper industry, but enhanced oil recovery could grow to become 8 to 10 percent of the take in two to three years. Aggregate growth for acrylamide is projected at 3.5 percent per year through 2008.

By: Mark Kirschner
+1 713 525 2653

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly