The Polyamide 6 prices have continued to follow a downward trend globally during the week ending December 9, 2022, owing to the gloomy demand from downstream industries.

The data indicate that Polyamide 6 price decreased by approximately 3.5% in the Chinese domestic market. The global macroeconomic high inflation rate continues to affect the chain of the petrochemical industry. In the Chinese domestic market, the price of upstream Caprolactam has recently decreased, with pure Benzene, which is used as a raw material to produce Caprolactam. In terms of supply, the product was readily available on the ground, and the Polyamide 6 operating rate decreased while output remained constant. The downstream textile industry has an average load, and the stock of Polyamide 6 chips has reduced in the market. Buyers in the Chinese market lack enthusiasm and a wait-and-see approach to procuring the product. Polyamide 6 costs hovered around USD 2045 per MT during the week ending December 9, 2022, on a FOB Dalian basis.

In addition, the material's feasibility helped push down the price of Polyamide 6 in the European market. The region's port congestion is decreasing, and material availability in the European market is feasible. According to market participants, volatile natural gas prices and high inflation continue to reduce downstream demand. The upcoming holiday seasons in the Eurozone cause low demand in the downstream textile industry. On a DDP Hamburg basis, Polyamide 6 price settled at USD 4420/MT during the week ending December 9, 2022.

At the same time, the price of Polyamide 6 decreased in the US market due to the sufficient product availability in the market. The current price trend of Polyamide 6 has been supported by a price drop in upstream Caprolactam prices due to weak trading dynamics and low demand. The orders from the buyers are declining due to the approaching holidays at the end of the year. On December 9, 2022, Polyamide 6 on a DEL US Gulf fluctuated around USD 3700/MT.

The Analyst thinks the Polyamide 6 price may continue to fall in the coming weeks. The uncertainty in the global economy in December 2022 will impact the global cost of Polyamide 6, possibly resulting in weak demand from downstream industries. Furthermore, the orders from the purchasers may be more vulnerable with the forthcoming occasion moving close.