Germany and U.S. Polyamide Markets Show Stability While China Sees Pre-Holiday Price Rise

Polyamide prices exhibited mixed trends globally during the second half of November 2024, reflecting varied regional dynamics. Prices in Germany and the U.S. remained stable, with Germany impacted by subdued demand and steady supply, while the U.S. was supported by consistent automotive demand and adequate supply. Meanwhile, China saw a modest rise driven by pre-festive stockpiling.

In Germany, Polyamide prices held steady as the market grappled with weak demand, particularly from the automotive sector, which remains under significant pressure. Manufacturers faced ongoing challenges in improving margins due to heightened competition and broader economic headwinds. While supply remained stable across Europe, seasonal low demand conditions dominated purchasing behaviour. Buyers capitalized on discounted offers to build inventory for January, reducing the likelihood of price fluctuations in the near term. The expansion of the European Union's Emissions Trading System (ETS) and stricter fuel regulations set to begin in January 2025 are expected to add to operational costs for the logistics sector, potentially impacting future freight rates. Additionally, modernization activities at Hamburg's port continued to disrupt schedules, though falling global container demand helped maintain equilibrium in the European Polyamide supply chain.

In China, Polyamide prices rose moderately during the latter half of November, driven by stockpiling activities ahead of the Chinese New Year. Manufacturers exhibited cautious buying behaviour, balancing inventory levels against declining feedstock costs. Rising intra-Asian freight rates due to limited capacity from blank sailings created logistical pressures, though ports managed current volumes effectively. Market participants anticipate potential supply shortages as demand intensifies closer to the holiday season. The steady recovery of the automotive sector, particularly in new energy vehicles, continues to support Polyamide demand, with the broader outlook remaining positive amid festive season preparations.

In the United States, Polyamide prices remained stable, supported by steady demand from the automotive industry and improving consumer confidence. Declining auto loan rates contributed to sustained purchasing activity in this segment. Supply of Polyamide remained sufficient to meet market requirements despite ongoing logistical hurdles, including equipment shortages at West Coast ports and frontloading activities ahead of potential tariff increases in 2025. Elevated transpacific freight rates added pressure to supply chain costs, with carriers introducing General Rate Increases (GRIs) to offset operational challenges. Nonetheless, a stabilizing manufacturing sector, buoyed by hopes for pro-business policies under the new administration, lent optimism to Polyamide market participants.

As the year concludes, the global Polyamide market is expected to navigate a complex landscape of macroeconomic and logistical factors. In Europe, regulatory changes and economic uncertainties may continue to limit price movement, while in China, pre-holiday demand could drive short-term growth despite logistical constraints. The U.S. market, supported by improving consumer sentiment and stabilized manufacturing activity, is poised to maintain equilibrium.