China’s Economic Recovery Seems to have a Positive Impact on Polyimide Market, see how

Polyimide prices saw a notable increase in the first half of November 2024, driven by a combination of broader economic factors and sector-specific demand. The high-performance polymer, widely used in electronics, automotive, and aerospace applications, experienced rising prices due to growing demand across key industries, inventory replenishment, and the impact of global economic recovery measures.

A primary factor behind the surge in Polyimide prices was the increased demand from the electronics and automotive sectors. The growing importance of industries such as semiconductor manufacturing, electric vehicles (EVs), and aerospace heightened the need for advanced materials like Polyimide. The global shift towards greener transportation solutions, highlighted by China’s rapid expansion of new-energy vehicles (NEVs), played a significant role. With NEV production surpassing 10 million units in 2024, the demand for Polyimide used in high-temperature, electrically insulating components was bolstered by the surge in EV manufacturing and the worldwide transition to electric mobility.

China's automotive market saw a 7% year-on-year increase in vehicle sales, with NEVs setting a record in October 2024, further driving the need for specialized materials like Polyimide. The government’s policies supporting the automotive industry, alongside rising local auto sales, contributed to the heightened demand for high-performance materials in manufacturing processes.

China's broader economic recovery also influenced Polyimide pricing. The country’s GDP grew 4.8% year-on-year in the first three quarters of 2024, and investments in high-tech sectors, including green technology and digital economies, surged. This growth has positioned China as a key growth engine globally. Moreover, China’s manufacturing activity showed signs of recovery in October, with factory output expanding modestly and new orders stabilizing after a prolonged decline. Business sentiment also reached a four-month high, fueling optimism about future growth.

In terms of trade, China’s export dynamics in 2024 contributed to the robust market for Polyimide. Exports grew significantly, driven by improved global trade conditions and a 15.2% increase in cross-border e-commerce. China’s competitive manufacturing sector, bolstered by strong global supply chains and government support, ensured high demand for materials like Polyimide. On the other hand, imports declined due to weak domestic demand and lower prices for bulk commodities. However, the need for advanced materials in both domestic and international markets remained strong.

Looking ahead, the Polyimide price trend in the coming months likely to remain mixed. While demand from key Asian economies, particularly China, is expected to remain high, seasonal factors such as the Lunar New Year festival could lead to increased procurement activity. However, potential destocking and discounts on spot purchases may result in price fluctuations. Overall, a combination of heightened demand from the West and peak procurement cycles in Asia could continue to drive Polyimide prices upward, as manufacturers navigate the complexities of post-pandemic recovery.